In a recent conversation with Business Insider, I shared my perspective on what’s shaping up to be a transformative year in investment banking recruitment. The signs of revival are unmistakable, and I’m not alone in this observation. When Evercore’s Chairman and CEO John Weinberg spoke at Goldman Sachs’ annual conference in December, he revealed something telling: despite November and December typically being quiet months for recruiting, he’s been speaking with potential talent virtually every day. This unusual pattern aligns perfectly with what we’re seeing at Prospect Rock Partners.
My colleague in the industry, Kevin Mahoney at Christoph Zeiss Partners, reported to Business Insider that their pipeline is up an astounding 60-70% over normal levels. He expects 2025 to be “bonkers” in terms of hiring volumes. This tracks with our own observations, though I’d characterize the approaching wave as more strategic than chaotic.
The optimism isn’t just coming from recruiters. Robert Stowe, head of Americas equity capital markets at Barclays, projects some $50 billion in initial public offering volumes in the US next year – a roughly 20% increase from 2024’s $41 billion in the Americas, according to Dealogic’s tracking. This anticipated surge in IPO activity is just one factor driving what I believe will be a robust hiring market.
Speaking with my fellow recruiters, including Brianne Sterling at Selby Jennings, there’s particular interest in how banks are positioning themselves for AI-related deals and digital assets. This technological evolution is reshaping not just the deals themselves, but the type of talent banks need to execute them.
We’re already seeing this play out across the Street. Union Square Advisors, for instance, has been making strategic moves in the tech space, bringing on Terry Jackson from JPMorgan and Bank of America Securities as a managing director. They’ve also added Todd Meadow for sponsor coverage and Chris Appaneal to focus on software for governance, risk, and compliance.
Houlihan Lokey’s recent appointments tell a similar story. They named Ryan Lund as a cohead of US technology and brought on specialists like Nana Kyei from Jefferies to focus on education tech. Meanwhile, Barclays has been building out their tech coverage with hires like Rob Patterson from Morgan Stanley and David King from Bank of America.
The big banks aren’t sitting idle either. JPMorgan Chase has been engaged in vigorous off-cycle recruiting for junior investment bankers, and Goldman Sachs’ careers portal shows openings across multiple coverage groups including financial institutions, entertainment banking, TMT, and industrials.
Based on our early compensation survey findings at Prospect Rock, we’re noting particular dissatisfaction among technology and restructuring professionals regarding their compensation packages. When bonus announcements roll out in January and February, I expect we’ll see significant movement, particularly among those who feel undervalued.
One senior MD I spoke with recently shared his confidence about 2025 delivering deal volumes comparable to 2021 levels, even if valuations might not reach the same heights. However, he expressed concern about finding quality mid-level talent, noting it’s “almost impossible” to find impressive associates or VPs in the current market.
At Prospect Rock, we’re currently working to fill multiple positions across various levels, including four analyst roles, six associate roles, and two VP positions. But our approach reflects a crucial lesson learned from 2021. As I told Business Insider, “In 2021, you just needed bodies — more horsepower. This is very different.” Banks are markedly more vigilant in emphasizing quality over quantity. “Nobody wants a 2021, 2022 redo,” I emphasized. “A lot of those hires were not strong.”
The technology sector presents an especially interesting case. While TMT groups across the Street are staffing up, they’re doing so with remarkable precision. We’re seeing demand for bankers who can navigate not just traditional tech M&A, but who also understand emerging areas like AI implementation and digital asset consolidation.
Looking ahead to 2025, I anticipate a particular focus on mid-level hiring. The industry has learned from past cycles that you can’t just throw junior analysts at complex deals and expect optimal outcomes. You need that crucial middle layer of experienced bankers who can bridge the gap between senior dealmakers and junior execution teams.
What does this mean for professionals in the industry? If you’re an experienced banker with a track record of successful deal execution and the ability to develop junior talent, 2025 could present significant opportunities. However, the bar is higher than ever. Banks are looking for professionals who can add value from day one while contributing to their long-term talent development goals.
The investment banking landscape is indeed heating up, but this time it’s different. It’s not about rapid expansion – it’s about smart growth. As we move into 2025, the firms that will win the talent war won’t be those who hire the most people, but those who build the most capable and cohesive teams.
If you’re considering your next career move or looking to build your team, I’d welcome a conversation about how these trends might impact your plans. After all, in this new era of investment banking, having the right strategic partner for your talent needs has never been more crucial.
Meridith Dennes is the Managing Partner at Prospect Rock Partners, a leading executive search firm specializing in investment banking and financial services recruitment. This piece was inspired by her recent interview with Business Insider.
