Fight for private equity talent in Asia heats up

[SINGAPORE] The recent furore between US banking giants and private equity (PE) firms over the poaching of junior analysts from the banks has brought renewed focus to an ongoing practice. In Asia, the battle for talent is hotting up as PE managers are under pressure to deploy US$260 billion in dry powder. 

In key Asian financial hubs such as Hong Kong and Singapore, the situation is less cut-throat, market participants say. Recruiters and executives at three of the biggest American private capital companies told The Business Times that while there are instances of PE firms hiring bankers, the circumstances are different for every market.

In particular, the making of future-dated offers to junior investment banking analysts and associates is not as common as in the US. The practice of PE companies extending offers to junior investment banking analysts – even those who have not started working at the banks – led to a backlash.