Culture of Manipulation and Lies
I’ve started working at a respectable PE shop (ex. KKR, CVC, TPG, Carlyle) and have noticed that the information that management feed to their teams seems to always be half true or somewhat toxic. Many rumors that fly around the firm that you think “no way that actually happened” also turn out to be true. A lot of the new hires have the same sentiment as I do that we don’t trust management.
The company has a reputation of letting high performers slip away because when it comes time for promotions, the high performers are told that they “didn’t meet their goals” when in reality they met all of their goals set and the real reason is because the market is bad and the firm had a bad year. I have seen multiple people leave without having other jobs lined up before they do.
On top of that, I have seen the firm recruit for specific roles, tell them they will transition to it in a year, and then say “sorry there isn’t a spot for you anymore.” I’ve seen people asked to move and relocate their families just to later be let go. Managements motto is “do what I say, not what I do.”
I’m somewhat worried about my future at this firm and getting stuck here if I don’t get out. This is my first job in PE so I have nothing to compare it to. Is this typical?
I assume you are a first year associate in the US. I would recommend you focus on getting your work done, learn as much as you can and then you may think about whether that is the right place for you during / after your MBA. There is really limited upside in burning calories in trying to understand these dynamics and react to them. Also, generally you may have, given your position, imperfect information available and you may tend to side, given your seniority, with people closer to you rather than "management". Again, I would strongly encourage you to focus on maximizing the quality of your work for the next two years.
You're smart to be noticing it but agree the degree to which it actually matters to you only depends on how long you plan to stay. If it's a 2-3 and out, just complete your program and don't worry about it. If you're debating staying / that's an option for you, then you can worry about it.
My take on your actual question is that some firms really are like this and it probably isn't just paranoia. I would not underwrite the culture changing, personally. Might still be worth it for you depending on the opportunity and your own political capital. I do not think all firms are like this, but do not think that type of culture is unique - but in general I think this is more about firm culture than the industry (you'd see same type of BS in some consulting firms, IBs, F500s).
Final point is the industry had a tough year following a period of overhiring so stories like this are (hopefully temporarily) more common at the moment.
I appreciate your insight
Responses so far are excellent and I echo them 100%.
I've had similar experiences with past companies and made the mistake of burning way to much energy on things that just simply didn't effect me as a junior employee, or more accurately, things that I have 0 ability to influence or change. It's hard because if you have any awareness/perspective on what is reasonable, you can absolutely lose your mind trying to process the behavior you think you are witnessing.
Many of us enter the professional world with an idyllic view of how these companies are run. You assume its the best and the brightest at the helm, true leaders looking out for their troops and pushing the company forward. That's not always the case and at the end of the day it is just people, mostly hard charging careerists, playing a game and making moves informed by their own personal circumstances. Culture helps dictate whether these motivations can harmonize or whether they become competing forces. A bit of a bleak take, but I hope you get the point
As a junior, this is something you should be aware of, but not paralyzed by. Take note of how these things effect you and the rest of the team and strive to be different when you're at that level.
Really great comment. Thanks for sharing your thoughts!
It's not just top PE funds, a lot of smaller funds do it as well and outside of PE. Probably even more so.
Gonna take a guess…..Carlyle?
Carlyle has lost its cache
Cachet*
Cashay
Sounds like Vista
Rly? One of the better MF cultures from what I've seen firsthand / been told. Can't say the same about Apollo, H&F, Carlyle, and idk what all this Sycamore Partners is about LOL
We get it, you work at KKR. Can we stop these humble brag posts? Like you’re never gonna leave unless the kick you out right, so what advice are you really looking for? Yea, top financial firms where the seniors make millions tend to be run by d-bags. What’s new?
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