Private Equity Hiring Trends 2018 Q3

Private Equity Hiring Trends – Q3 2018

Private Equity and Venture Capital Employment experienced something of a setback in 2018 Q3, with an index decline of 2.53 percent. This is particularly distressing as it comes on the heels of a Q2 index decline of 1.24 percent.

According to Pitchbook, middle market Private Equity deals are running well behind 2017’s levels, both in terms of numbers of deals (1358) and deal value ($178.5 billion). This contributes to a decline in staffing demand.

Still quoting Pitchbook,”[Middle market] U.S. PE-backed exits got off to a sluggish start in 1Q, but that ticked up last quarter, with 183 exits totaling an estimated $14.8 billion. Still, PE-backed exits have lagged in 1H compared to the first half of 2017, when 476 exits brought in nearly $44 billion.”

It is important to note that U.S. middle market private equity deal value represents 68 percent of all private equity deal value, an increase of 10 percentage points over 2017. As a result, what happens in middle market private equity bears heavily on the direction of the private equity industry as a whole.

Accounting and Control moved up substantially, boasting a 10.66 percent index gain. This follows a Q2 decline of 8.83 percent, and a Q1 decline of 0.59 percent, essentially negating the lost job openings which occurred in the first one-half of 2018, ending Q3 with a small net gain.

The Investment group shared a different fate, with its index falling 9.89 percent―this group’s first decline in 2018. Legal Compliance suffered an 8.33 percent index decline, marking back-to-back declining quarters.

Marketing and Investor Relations surged with a 33.4 percent gain in job openings, while “Other” fell 15.76 percent, this group’s second straight quarter in decline.

Three of five job title groups enjoyed index gains in Q3, the most dramatic of which, in terms of percentage change was the Accountant / Jr./Sr. Accountant / Financial Reporting group, which showed an index increase of 82.39 percent, followed by the Attorney/Counselor/Solicitor group, which ran their index up by 58.29 percent. Rounding out the gainers were the Fund Operations group which gained a modest 2.8 percent.

Losing ground in Q3 are the Associate / Sr. Associate / PE Associate / VC Associate group, and the Jr/Sr Analyst /Analyst / Investment Analyst group, which declined 2.9 and 23.96 percent, respectively

The top 6 geographies tracked by Job Search Digest are evenly split between gainers and losers in Q3.

Both California and New York’s employment index declined, with New York taking the brunt at -19.7 percent. California took a smaller hit at 11.54 percent. On a positive note for U.S. geographies, U.S. Other gained a modest 1.4 percent.

Abroad, Asia suffered the only decline in Q3, while UK job opportunities increased 20.03 percent and Europe Other’s index gained 11.07 percent.

Only one-third of the geographic areas tracked by Job Search Digest saw index gains in 2018 Q3― North America was not among them.

Hiring Trends World Map Placeholder
Hiring Trends World Map

The Eastern most geographic areas, Asia and Australia/New Zealand suffered index declines of 4.04 and 23.48 percent, respectively. The continent fared much better, with Europe and the UK enjoying index gains of 14.07 and 23.32 percent, respectively. North America’s index declined 5.54 percent and “Other” saw its index decline for the first time in 2018―a decline of 12.81 percent.

North America’s declining index, no doubt led by the U.S. private equity and venture capital industries, is the result of 1) rising interest rates, with 3 rate hikes so far in 2018, 2) concerns regarding tariffs and the prospects of a widening trade war, and 3) finding attractive opportunities for deploying capital continues to be an issue

Hiring Trends US Map Placeholder
Hiring Trends US Map

California and New York have been in a contentious environment through the first 3 quarters of 2018, Averaging the results for the first 3 quarters, we see California with an average monthly index decline of 8.31 percent as compared to New York, whose index has had an average monthly decline of 5.35 percent.

 

 

PE Hiring Trends Archive:

Private Equity Hiring Trends 2017

Private Equity Hiring Trends 2016

Private Equity Hiring Trends 2015 Q4

Private Equity Hiring Trends 2015 Q3

Private Equity Hiring Trends 2015 Q1-Q2

Private Equity Hiring Trends 2011-2014