Private equity firms are said to be paying big signing-on bonuses to attract junior staff from investment banks. London-based funds are offering bonuses of between £15,000 (€22,000) and £20,000 to junior staff joining from banks, according to Badenoch & Clark, a financial services recruitment firm.

Krista Parker, head of Badenoch & Clark's private equity team, said the use of sweeteners to entice juniors reflected the competition in recruitment. Many banks were trying to recruit and retain analysts, said Parker. "Analysts are the most valuable commodity in the market. Private equity groups need to compete with hedge funds and investment banks which offer higher cash compensation," she said.