I would like to use this opportunity to provide you all with a breakdown of the current Banking & FS job market, and to ask you to contact me for advice over your forthcoming requirements in 2011.
Austin Andrew Market Update: Front Office Banking & FS
General – 2011 is showing us a significant rise in hiring within Corporate Finance / M&A. And we have noted a significant increase in demand for Leveraged Finance professionals when compared to 2010, particularly across the mid tier banks, Asian owned Banks, Boutique spaces and Asset Management sectors. We have seen a 115% rise in vacancies registered over January 2011 in comparison to 2010, largely accounted for by Mid tier banks and Boutiques taking advantage of disgruntled employees at larger Global Investment banks who have not been paid market competitive bonuses. More favorable market conditions have also been a positive factor for the financial sector’s front office recruitment as a whole.
Salary Levels – Corporate Finance and Leveraged Finance businesses have been particularly competitive over the month, although guaranteed bonuses are now being eclipsed by substantially larger basic pay rates. For specific salary and industry guidance please call me on 020 7153 1676 Competition – The market has become increasingly competitive among candidates and clients throughout the course of 2010. The availability of the best Investment Banking and Asset Management professionals continues to be extremely scarce resulting in interviewees often being involved in concurrent processes with different companies.
Counter Offers – Leading on from the marked increase in competition, we have seen a significant rise in the number of counter offers being made to candidates. Clients have recognized the scarcity of exceptional individuals in the market and use counter offers as a means to retain their talent.
February 2011 – We expect continued demand from boutiques and mid tier banks. Requirements for Managing Directors and Directors are expected to remain stable. Whilst a continual need for strong Associates and Senior Associates is expected to remain for the coming months. Expectations of candidates at interview have become increasingly high. More and more clients are adopting structured competency-based testing; candidates are thoroughly tested to highlight development points and knowledge gaps.
A small selection of recent Banking & FS placements (2011)
· 3 Associates at a UK Mid Market Corporate Finance house
· 2 Associates, Loans Syndication & Loan Sales
· 1 Equity Research analyst, Natural Resources
· VP, TMT Corporate Finance
· Director, Global TMT Advisory firm
· Director, Private Equity House (London Based)
We look forward to hearing from you in February. If you have any immediate questions call the Banking & FS team on 020 7153 1676.