(Non MBA) Associate Exit Ops

Based on the most helpful WSO content, here are some insights regarding exit opportunities for an Associate 2 (ASO2) at a bank:

Exit Opportunities for Associates:

1. Middle Market (MM) and Lower Middle Market (LMM) Private Equity (PE):

   • MM PE: Analysts from MM banks have successfully placed at firms like Sentinel, Riverside, Providence, Norwest, HarbourVest, Blackstone (after a HF stint), Accel-KKR, HIG, Lightyear, and L Catterton.
   • LMM PE: LMM firms, such as those with ~$500M funds, offer a different work environment compared to UMM buyout firms. The daily work, skillset, and value creation strategies differ, with LMM focusing more on growth and buyout strategies.

2. Growth Equity and Venture Capital (VC):

   • Growth Equity: Top-tier growth equity firms (e.g., Spectrum, JMI) with ~$2bn fund sizes offer competitive compensation and career progression. These roles can be compared to LMM PE roles in terms of exit opportunities and compensation.
   • VC: Exiting to a VC firm is also a viable option, especially if you are interested in working with startups and early-stage companies.

3. Corporate Development (CorpDev):

   • CorpDev at F100 Companies: Exiting to a corporate development role at a Fortune 100 company is another potential path. This role typically offers better work-life balance (WLB) compared to PE and VC roles.

4. Private Credit:

   • Private Credit: While you mentioned a lack of interest in private credit, it remains an option for those looking to stay within the finance sector but with a different focus.

Considerations:

• Brand Name and Upward Mobility: Having a brand name on your resume can provide more options for future exits. Moving from a smaller fund to a larger one can be challenging, so starting at a larger fund might offer more flexibility.
• Work-Life Balance (WLB): Generally, roles in MM and LMM PE, growth equity, and VC offer better WLB compared to MF PE roles.
• Career Progression: Each path offers different career progression opportunities. For instance, staying on as a BB IB associate (A2A) might provide a more structured career path within banking.

Summary:

• MM and LMM PE: Viable options with different work environments and strategies.
• Growth Equity and VC: Competitive roles with good career progression and compensation.
• CorpDev: Offers better WLB and is a solid exit option.
• Private Credit: An alternative within the finance sector.

If you are willing to lose some seniority and are open to different roles, there are several viable exit opportunities available at your level. The lack of exit opportunities for associates might be overblown, as there are numerous paths you can explore based on your interests and career goals.

Sources: Non MF/UMM PE exit opps: Growth Equity / VC / CorpDev / LMM PE / Private Credit / PE FoF / IB A2A, Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, How to tell the prestige of LMM or MM PE firms?, How to approach LMM PE recruiting?, Middle Market Banking Exit Ops, what do they look like?