– Sixth Annual Survey Shows Private Equity and Hedge Funds Gaining in Popularity as Career Choice for MBAs —
NEW YORK, June 23, 2015 — A recent survey of MBA graduates and students conducted by Training The Street (TTS), the leading corporate training provider for Wall Street firms and top-tier business schools, found that 43% of respondents received base salary offers of at least $125,000, a sharp rise from the 26% of respondents who reported salaries in this range a year ago.
Overall, there was a slight increase of those polled that received offers of over $100,000, to 79% from 74% last year. Satisfaction with these offers rose with the increased base salaries as 54% said they are “very satisfied” and 38% reported “satisfied”. Only 8% are “dissatisfied”, down from 12% a year ago.
The sixth annual TTS MBA Employment Survey also found that buy side firms are an increasingly popular first career stop for MBAs as private equity and hedge funds are the top career choice for 16% of MBAs, up from 11% last year. The most popular choice, however, remains bulge bracket banks (26%), followed by consulting firms (19%, down from 25% last year).
Recruiting efforts by various firms jockeying for top talent remains competitive, especially with a revived effort from alternative investment funds. When asked, “What types of firms have been actively recruiting you?” 20% of respondents selected private equity and hedge funds, up from 12% a year ago. Boutique advisory firms also rose to 28% from 24%. Continuing the historic trend, bulge bracket banks lead all others at 45%, while consulting firms are also pushing for talent, targeting 44% of respondents. Startups are active as well, reaching 18% of MBAs polled while only 5% chose startups as a top career choice.
“Increased M&A and capital markets activity has led to further hiring on Wall Street. Our banking clients in particular are seeing a healthy rise in new hires year over year, which matches the increase in class sizes at our on-campus, corporate client, and public courses,” said Scott Rostan, Founder and CEO of Training The Street. “A healthy banking sector anticipating further deal activity is also spurring more competitive offers for MBA students. We’ve seen these salaries rise the past few years, especially as Wall Street is more cognizant of retention issues and the quality of life concerns of their junior bankers.”
Quantitative analytical skills alone did not help land jobs, according to the survey. Over half – 54% – of respondents reported interpersonal and communication skills as cumulatively the two most relevant skills required by MBAs to land a job, with industry expertise the second most important skill at 24%.
Rostan adds, “MBA students understand that banks value those who can be strong team players and work well together under tight deadlines. In addition to the large banks, boutique advisory firms are hitting their stride and making hires, while Silicon Valley, financial service firms, and alternative investment funds are also offering competitive salaries and varying career lifestyle options.”
Other key findings of the survey include:
About Training The Street
Training The Street (TTS) is the world’s leading provider of instructor-led courses in accounting, asset management, capital markets, financial modeling and corporate valuation training to Wall Street investment banks, federal government agencies, law firms, business schools, and top colleges. With offices in the financial hubs across the U.S., as well as an office in London and India, TTS boasts a deep field of expert instructors and extensive practical experience. Currently, TTS is offering live training programs to interns, analysts and associates at nearly 200 banks and corporate businesses, including Wall Street’s 10 largest banks, as well as the 20 highest ranked MBA programs in the nation. For more information, please visit www.trainingthestreet.com.