What are your thoughts on the increasing opportunities for students from less prestigious schools to secure placements?
It’s becoming statistically easier each year for non-Ivy or “non-target” students to land finance positions. The focus on target schools was a norm up until 2012, when banks would often discard any resumes that didn’t come from their select list of institutions—some bulge bracket firms even had lists of just five schools. In the past, getting a foot in the door often hinged on having an MD as an alumnus who was willing to take on an intern, and even then, you would typically find yourself confined to one specific desk rather than experiencing a rotational internship.
This approach to recruitment proved to be ineffective. The shift began on the buy-side when firms like Baly and Point started tapping into student endowment funds at schools like the University of Alabama, where they observed superior performance and retention rates. Following this, companies like Goldman Sachs conducted internal studies revealing that 75% of their executive-level staff, including executives and managing directors, hailed from non-target schools.
While Ivy League and top 25 schools will always retain a measure of prestige and give students access to a larger alumni network, it’s now more feasible than ever for non-target students to secure positions at previously “exclusive” internships.
I’m interested in hearing other perspectives on this shift. What do you think?
One response
I think you’re raising some very valid points about the evolving landscape of recruitment in finance. The shift away from the rigid “target school” mentality highlights a growing recognition of talent and potential beyond just the name on a resume. As you’ve mentioned, the successful performance of recruits from non-target schools suggests that skills and experiences can sometimes outweigh the prestige of an Ivy League education.
This change is beneficial for several reasons. First, it diversifies the talent pool, leading to a richer mix of ideas and strategies within firms. Companies that recruit from a wider range of schools can better reflect the diversity of the markets they serve, which can ultimately drive innovation and performance.
Moreover, as the data you cited shows, many successful professionals in finance have emerged from non-target schools, proving that a strong work ethic, motivation, and the ability to learn quickly are crucial traits that can be found in candidates from all backgrounds.
That said, Ivy League and T25 institutions will likely still maintain some level of advantage, particularly due to established networks and resources. However, the increasing emphasis on performance metrics and results-driven hiring practices may encourage even more firms to look beyond traditional boundaries in the pursuit of talent.
Overall, this trend is encouraging and reflects a broader shift towards meritocracy in recruitment—an important step for the finance industry and other sectors as well. It would be interesting to see how this continues to develop and how firms will adapt their hiring practices in the coming years. What do you think will be the long-term implications of this shift?