2 and out - when/what to recruit for?

First year at a large fund that pushes out every associate after 2 years.

  1. When do I need to start recruiting?

  2. Are there any options on the corporate side where I can still make 250k+?

  3. If I want to stay in PE, what kind of funds will I get looks from? If I'm at a 10bn+ fund size now, will it be straightforward to make it to a 3bn+ fund?

21 Comments
 
  1. When to start recruiting?
    Based on the most helpful WSO content, you should start preparing for recruiting well in advance of your second year. Typically, on-cycle recruiting for private equity starts early, often in December or January of your first year. If you're targeting lateral moves or corporate roles, you should begin networking and reaching out to recruiters at least 6-9 months before your expected exit date. This ensures you have enough time to explore opportunities and secure a role before your current position ends.

  2. Corporate options with $250k+ compensation:
    Yes, there are corporate roles that can offer $250k+ compensation. Based on WSO discussions, roles in corporate development, strategy, or investor relations at large companies (especially in tech, healthcare, or other high-growth industries) can meet this threshold. Additionally, joining a well-funded startup (Series B-D+) in a senior finance or strategy role could also provide competitive compensation, especially with equity upside. Look for companies with lean finance teams and strong growth potential.

  3. Staying in PE and fund options:
    If you're currently at a $10bn+ fund, transitioning to a $3bn+ fund should be achievable, especially if you have a strong deal track record and relevant experience. Middle Market (MM) and Lower Middle Market (LMM) funds often value candidates from larger funds for their training and exposure to complex deals. However, the process may not be as structured as megafund recruiting, so networking directly with funds and leveraging headhunters will be crucial. Additionally, funds that promote lateral hires without requiring an MBA could be a good fit for your goals.

    Sources: Q&A: Leaving PE After 2.5 Years for Corporate Finance, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, From Private Equity Associate to VP in Private Equity, Senior Associate Recruiting - Timeline for Recruiter Outreach, Private Equity Recruiting Walkthrough – My Experience

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

That doesn't sound like an MBA alternative as a MBA is only useful for recruiting 

There are already startup accelerators that exist? 

 

Are you the same person who was venting about this on the other thread? The world doesn’t owe you a chill, high paying job. Your career is what you make of it. You need to start thinking about what you want, what you're good at, and develop conviction on what you think will be an attractive area to have a career in for the next 10+ years. Stop expecting others to tell you what to do with your career.

  • Strategic finance, FP&A, corporate development (probably worth seeing if you can do it at an existing portfolio company that you like - often times lets you get a more attractive title)
  • Venture, growth, private credit, secondaries, FoF, family offices, endowments, pensions. So many other types of alternatives investing... what are you passionate about?
  • Hedge funds (all flavors of public equity and credit investing)
  • Management consulting
  • Investment banking, corporate banking, commercial banking, sales & trading
  • Buyside capital markets/syndication
  • PWM/asset management
 

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