Goldman Sachs has announced a new program to retain junior talent by offering them positions within its asset management division. The initiative aims to prevent junior bankers from leaving for private equity firms. The Wall Street bank recently informed its summer interns about the program.
It allows a select group of incoming junior bankers to transition into its asset management business after completing their two-year investment banking analyst programs. “I’m pleased to share that we will introduce an additional early entry point for those of you interested in exploring buyside careers,” said Dan Dees, co-head of the bank’s global banking and markets unit, in a memo. The program offers full-time investment banking roles with a guaranteed transition to asset management after two years.
Interested interns have been encouraged to speak with their managers to learn more about the application process. The move comes as investment banks push back against private equity firms’ aggressive recruitment practices. These often involve offering future-dated jobs to young talent before they have even completed their current roles.
Goldman program for junior retention
Goldman Sachs plans to ask its junior bankers to commit to not accepting such offers, according to a recent Bloomberg report. The roles being offered by Goldman will be part of the asset management group, which includes the firm’s growing alternative investments sector.
This sector is gaining prominence, thanks to the bank’s focus on private lending and other forms of alternative investments. CEO David Solomon recently announced that the asset and wealth management division raised $18 billion for its alternative investment funds last quarter. The initiative by Goldman Sachs comes amid an unsettled private equity recruiting season.
Several large firms have decided to delay their recruitment processes until next year. This pause follows JPMorgan’s directive that bans its junior bankers from accepting future-dated job offers. Goldman Sachs’ new program aims to offer junior bankers a more diversified career path within the firm.
It potentially increases retention and provides broader career development opportunities.