Lateralling at VP Level

Lateraling at the VP level is notoriously challenging, and there are several factors to consider based on the most helpful WSO content:

1. Fewer Openings at the VP Level:

   • Private equity and investment banking firms often have an hourglass organizational structure, meaning there are fewer mid-level roles (like VP) compared to junior roles.
   • Many firms prefer to promote internally rather than hire externally at the VP level. This is because they’ve already invested in training their associates and senior associates, and they know what kind of talent they’re getting.

2. Value Proposition as a VP:

   • VPs are often seen as "quarterbacks" of deals, managing execution with associates for support and MDs for oversight. However, some firms may view VPs as being in a "no man's land"—too expensive for junior work but not yet senior enough to bring in clients or deals.
   • To stand out, you need to demonstrate your ability to win clients, source deals, or show leadership that aligns with senior-level expectations.

3. Risk of Moving to a New Group or Coverage Area:

   • If you’re moving into a newly established group or coverage area, it’s critical to assess the group’s track record and growth potential. A new group may lack stability or deal flow, which could impact your career trajectory.
   • Ensure you have a clear understanding of the expectations and resources available to you in the new role.

4. Building Relationships and Networking:

   • If you’ve been at your prior firm for several years, you likely have strong internal relationships and a deep understanding of the firm’s culture and processes. Moving to a new firm means starting over in terms of building trust and credibility.
   • Networking with headhunters and leveraging your existing connections in the industry can help you identify firms that value your specific skill set and experience.

5. Timing and Career Goals:

   • Consider whether the move aligns with your long-term career goals. For example, if your goal is to eventually reach the MD or Partner level, evaluate whether the new firm offers a clear path for advancement.
   • Timing is also crucial. If you’re in a strong position at your current firm, it may be worth waiting for a more strategic opportunity rather than making a lateral move that doesn’t significantly advance your career.

6. Compensation and Role Expectations:

   • Ensure that the compensation package reflects the increased responsibilities and expectations of the new role.
   • Be clear on whether the move is truly a step up in responsibilities or just a lateral move with a different title.

Ultimately, lateraling at the VP level requires careful consideration of the firm’s structure, your value proposition, and how the move fits into your broader career strategy.

Sources: No VP Promote from Sr. Associate - Seeking Advice, "We don't hire VPs", Ask CompBanker, "We don't hire VPs"