Banks Hedge Fund Recruiting
Wall St. Banks Recruit Top Talent...for Hedge Funds
However, this trend has apparently grown past just banks losing out to hedge funds in recruiting, instead banks are actively recruiting for hedge funds in order to serve their clients and make profits. For more on this, check out this story.
Wall Street banks often boast that they hire the best and the brightest. Now, scrambling to bolster profits, they have become full-time headhunters for some of their biggest hedge fund clients, a role that is rife with potential conflicts.
Big banks have long provided extra benefits to hedge funds, including finding office space for firms and raising money for new portfolios. They have even acted like informal recruiters for their premier clients by passing along résumés or making introductions to industry professionals.
But those once-ancillary placement services have become established practices as Wall Street struggles to make up for profit centers that have been lost to new regulations and a weak economy. Since the financial crisis, Goldman Sachs (GS), Morgan Stanley (MS), Deutsche Bank (DB), Bank of America (BAC) and others have become powerful recruiting forces for hedge funds. In an effort to secure lucrative brokerage and trading business, the banks scout finance executives, accountants and receptionists free. Goldman calls the practice “talent introduction.”
