I'm exploring options for post-banking opportunities in finance, but I've categorically ruled out getting an MBA. Thus up until now, I hadn't given PE much thought.
I'm starting to reconsider PE due to some firms promoting to senior associate sans MBA, which is very appealing. I intend to make my no-MBA proposition very clear if I get to the later stages with firms, and I'll be happy to walk away if that's a non-starter.
My questions:
-How are the terms in the contract usually structured in these unique cases? Is there a stipulation that specifies it is a career track role? I'm obviously not going to commit to verbal promises.
-How to strategically target firms when recruiting, who have historically been open to direct promotion?
My background if it helps:
-Top 4 undergraduate school // reputable NYC MM IBD
Thanks in advance.
When you're an incoming associate, fresh from a IBD background, everything is going to be on a "verbal" basis. Firms won't guarantee anything - why would they? They have no idea what kind of performer you're going to be.
In any event, NY is an at will employment state so even if they give you a regular employment contract (rather than a fixed term as is typical of PE associates), they can let you go at any point without any reason.
As the poster above said, while some firms are open to promoting associates straight, it's something you will have to earn, not something that will be offered to you on a plate.
I wouldn't be so explicit up front and tell firms "no, I am not even going to consider an MBA." Don't rule out your opportunity set by excluding two year associate programs either. Things change, and in two years you may be burnt out and want to take the MBA break. But in any event, even if you do not end up wanting to do MBA, choose an opportunity that you feel you will learn the most at, that you are interested in, and aligns with your long term career goals (in general, not a specific firm). More likely than not, regardless of whether the place you choose to join requires an MBA or not and is a "partner track", you will not be a partner at that firm- not an indictment on you but that's just the nature of this industry; people change jobs frequently for a host of reasons and life (and business) is unpredictable.
Just a little background on my story which is relatable: I didn't want to do MBA either (and haven't). 2 years IBD in restructuring (no name shop), 2 years in lower middle market PE at a firm that I knew there was a deminimus chance of moving up without MBA, and now am a senior associate (without an MBA) at a very large distressed / value firm in their PE group and will be a VP effective in the fall. So similar track to what you are considering trying to do.
Can you talk a little more about the recruiting process (was it difficult, which recruiting firms did you use, how did you manage to move up market, etc) for you when you lateraled to your current firm?
unidentified123 to go from banking to my first PE job, I used a headhunter firm (SG Partners). From lower middle market PE to the large fund I am at now, I was considering doing an MBA as my firm was going to pay for it and bring me back, but did a market check to see what was available. So I only contacted two firms where I knew people at. For the job I landed, I worked with someone that was now in our distressed real estate group that passed on my resume to the PE team. Did the six rounds of interviews and got the offer and decided to take it vs. doing the MBA. If I didn't land that offer, I would have probably opened up my process through a headhunter firm.
Moving Up in PE – without MBA (Originally Posted: 06/07/2016)
I know that at a lot of funds you are forced out to either MBA or a different job after 2 years. Is there a list of funds at which you can be promoted and get on partner-track without an MBA? Is this very unlikely?
There is not a list. You will have to do this work yourself. Look at each firm's website for all in the VP/Principal role to see if they have an MBA. While not definitive, this process could help you get a sense if the firm requires an MBA or not at least at the senior level (actions speak louder than words).
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