The Banks Are Testing Your Loyalty

Plus; ICYMI - the Private Credit Comp Report inside

Author

James Howl-Newton
July 09, 2025

📰 Welcome to career.credit
Good morning, dealmakers.

Only weeks after JPMorgan told its 2025 analyst class they would be fired if they accept a future-dated offer within their first 18 months, Goldman Sachs has just added a fresh twist: new analysts must sign a certificate every quarter confirming they have not locked in a buy-side role.

If early-cycle recruiting already felt frantic, it just got a lot more complicated. Here is what the new loyalty playbook means for your first two years on the desk.

🧠 Deep Dive – JPM & GS versus the Buyside Pull

Bank

New rule

Stated goal

JPMorgan

Future-dated offer accepted within 18 months = termination

Stop half-trained bankers walking straight into buy-side seats

Goldman Sachs

90-day “loyalty certificate”; failure = termination

Deter stealth PE commitments and reassure senior dealmakers

Ripple effects

  • Recruiting pause: Apollo, General Atlantic, TPG and others have pushed their associate hiring back to 2026

  • Legal grey zone: Banks rely on conduct and disclosure clauses rather than classic non-competes.

  • Career calculus: A guaranteed PE seat two years out is no longer a free option; analysts must decide whether to double-down on banking experience or wait for a later exit window.

Who gains, who hurts

Likely winners

Why it helps

Top-bucket analysts

Scarcity should raise their value when the PE window finally opens.

Middle-market lenders

Slower churn at bulge brackets keeps execution teams stable.

Legal & compliance teams

Expect a surge of “can I sign this?” queries from nervous juniors.

Likely losers

Why it hurts

Day-zero PE recruiters

The traditional June interview marathon has evaporated.

Uncommitted new grads

Fewer quick escape hatches if banking isn’t the dream job.

📘 Career Tactic – Thriving inside the 24-Month Box

  1. Map exit windows: On-cycle recruiting may slip to December or later; plan your modelling prep around the new calendar.

  2. Document achievements: Keep a running deal log; it is your leverage when interviews resume.

  3. Build safe networks: Coffee chats with infra or private-credit funds broaden options without triggering HR alarms.

  4. Seek high-impact rotations: A stint in LevFin or Sponsors can offset the lost early-exit upside with better exposure and faster promotion.

Rule of thumb: Treat the first 18 months as a fully-paid MBA; the skill compounder beats the quick flip.

📂 In Case You Missed It – Highlights from the 2025 Private Credit Compensation Report

  • Associates: median total cash about $255 k

  • Principals: median total cash about $523 k

  • Bonus momentum: 8-15 % year-on-year increases, with roughly 80 % of professionals seeing double-digit bumps

  • Strategy premium: opportunistic and distressed credit pay around 10 % more than plain-vanilla direct lending at senior levels

  • CLO edge: structured-credit managing directors are clearing $1 million + in cash comp

  • Carry: top partners can earn 500 basis points or more in fund economics

2025 Private Credit Compensation Report.pdf422.25 KB • PDF File

🧭 TL;DR

✅ JPMorgan’s 18-month “stay or be fired” policy rattled PE recruiters.
✅ Goldman added a quarterly loyalty certificate for first-year bankers.
✅ Early-cycle PE hiring is on hold, keeping junior talent on banking desks longer.
✅ Use the enforced runway to pile up reps, then consult our comp report to see what that patience can earn you.

New opportunities, sharper skills, better positioning.

See you Friday.