2-and-Out and Push Out-- How many private equity assos return to their firm post-MBA?
I've been wondering about the 2-and-out PE associate program and had a couple of questions. Do most PE associates who do top IB -> 2-and-out PE program -> H/S have the option to return back to their firm upon business school completion? I could be mistaken but it seemed to me that the 2-and-out program is just another added hurdle to thin out the herd and you're subjected to post-MBA recruiting.
How many of the MF associate class return back to their firms post-MBA (ballpark % would be great)? And for the ones who don't, is it due to voluntarily leaving (better WLB / burnout / interest in different industries)? Or did they get pushed out and move down market? For the ones who do return back to their firms post-MBA, do they have to go through recruiters again (I saw that a couple HH firms hosted sessions at top MBAs for post-MBA PE senior asso / VP recruiting)? Or do you reach out to the firms themselves? Or did your firms give you a return offer even before your MBA matriculation? Do firms even sponsor the MBAs?
*Before people comment, I am a college senior, but with HH already hosting info sessions at my school for on-cycle recruiting, I am having doubts on whether PE recruiting is worth it if I get pushed out with a 2-and-out program. I'm questioning whether staying in IB is better risk-adjusted than doing PE only to get pushed out, spend 300k on MBA, and move down market post-MBA where my cash comp is lower than that of an IB VP and my net worth is tied up in carry that won't materialize for another five years,
Bump
The answer is 15-20% of associates can comeback - the sponsorship model is basically gone now at most firms given direct promotes and / or larger associate classes with bloated mid levels.
I think as a general word of caution - although I appreciate the concern for trying to plan out every step of your career years in advance, this post sounds as if it’s coming from a place of deep insecurity… Maybe first go into an IB role and see whether you enjoy it / are good at it / care for the work before laying out a plan whether to stay in it or not. Same thing with your interest in PE and bschool. I find so many people pursue IB/PE now because they don’t know anything better - the result of which is every week there’s a new post on this forum about someone rage-quitting / burnout-quitting from PE. You can be in the top 5% of grads your age by developing more self awareness and learning to think for yourself independently about a path that makes sense for you as you go through different experiences. Take what you want from that.
Thanks for the clarification.
I do agree with going into IB first and seeing whether I enjoy it before planning every step of the way, but given how accelerated recruiting timelines are, I don't think I have the leisure to wait around and see. 2024 on-cycle recruiting kicked off before analysts even hit the desk, and 2025 (my year) is probably going to be around graduation season, so if I were to decide I want to go into PE and do on-cycle recruiting, that's essentially a decision that I'd have to make before I've even tried IB. Especially with HH having started on-cycle info sessions for seniors since September, I want to have a sense of "Is PE something I can even have a long-term career in?", which is why I turned to this forum to ask this question.
Fair point, the accelerated timelines now are a big part of the problem. It’s all monkey see monkey do. Good luck.
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