Hartley Rogers, CEO of private equity firm Hamilton Lane gave a candid interview to finance career firm, OneWire. In it, he advises young people to go to big banks, get basic training, and then get out and do something else.
“My primary message to young people is get the foundation… but then don’t stay,” he said. “I think businesses get too big, and when they get too big they aren’t as good. And it’s true look at Wall Street… Morgan Stanley’s not the same place it was even 15 or 20 years ago. Goldman Sachs — not the same place. The big banks aren’t the same places. That’s why the private equity world is such a great world…It works because private equity funds know how to align the interests of the managers of the companies that they’re buying with shareholders.”
Right now, after the turmoil of the financial crisis, big banks are worried about their retention rates, so ‘to stay or to go’ after a few years is a big debate going on on Wall Street. Goldman Sachs and JP Morgan have both instituted policies to makes weekends easier for their young analysts, and make their firms better places to work.
But still, there’s the size issue. The bigger your firm is, the less control you have over your destiny.
Rogers continues: “I don’t want to pick on JP Morgan I love JP Morgan, they’ve done great service for us. But if you work there and you’re dumped a bunch of stock and retention type stuff as part of your bonus, it’s nothing. It’s junk, because you can’t do anything to influence that. There’s nothing you can do to make that stock more valuable or less valuable. Unless you’re the London Whale, in which case it’s less valuable.”
Watch the video below (from OneWire):