"75% of Goldman Sachs' juniors want to go to the buy-side. This hurts"

If you're a first year analyst joining Goldman Sachs with aspirations to work in private equity, today's revelation that the firm will prevent you from signing-up to work for a private equity firm in 2027 by demanding quarterly oaths/attestations that you don't have an external job offer, will be a blow. 

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We asked a top New York employment lawyer whether the process is legal. He deliberated for a few hours before telling us that it very probably is, although he declined to put his name to that. It seems unlikely that Goldman would impose its new requirement without legal advice. 

At the stage in the game, it's far too late for incoming Goldman Sachs analysts with private equity aspirations to find jobs elsewhere. First year analysts start at Goldman in July. They are therefore stuck, regularly attesting their loyalty. 

Brian Landeros, a former Goldman Sachs intern and Evercore analyst who now coaches students interested in banking jobs, says the Goldman oaths will not be popular. "At banks like Goldman more than three quarters of analysts will often go to buyside roles following the conclusion of the analyst program," says Landeros. "This really hurts."

JPMorgan has been similarly criticized for changing the rules mid-play. Some headhunters are simply encouraging junior bankers to lie about their employment status. 

Landeros said the best students will be discouraged from joining Goldman. "Private equity placements are far and away the #1 deciding factor for incoming analysts as they differentiate between which investment bank they’ll end up joining ," he says. "— More-so than compensation. The investment bank with the best private equity placement record generally attracts the best talent."

Presuming other banks don't follow JPMorgan and Goldman in setting restrictions, Landeros said the policy will simply drive juniors towards elite boutiques where they can segue into private equity more easily. It might even discourage this year's Goldman summer analyst class from accepting return offers. That could be good news for interns who are happy to swear fealty to the firm. 

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