A Real Disscusion about Promotion in PE

H&F, an extremely well-established firm that's currently in the market for a $20B fund (and known for making concentrated bets i.e., they do large deals), would not qualify as a MM fund.

While it is true that most associates leave after 2-3 years and many go to business school, that trend has started to change a bit. Fewer PE people need to go to business school now because many megafunds and UMM funds are promoting internally (e.g., Apollo, KKR, Warburg, Silver Lake, Francisco, Centerbridge, American Securities, etc.). If you're asking for what percentage of 1st year PE associates end up as VPs at the same fund, I'd guess ~5-20% for the larger funds. Most people won't be given offers, some people may want to move upstream/downstream (and/or to a different city), some will want to shift industries (HF, corp dev, start-up, corporate, etc). 

In order to get a chance to make VP, you need:

• To have been a great associate (goes without saying)
• To show some ability to take the "next step" (i.e., show that you can evaluate deals from a more strategic lens, exhibit the ability to manage people below (and above) you effectively, source deals, etc.)
• To build rapport with senior and influential members of the team (i.e., good political standing)