Does the concept of "superstar" even exist in PE (Associate / VP levels) ?
Just curious to see if the concept of "superstar" exists in PE at the junior level?
I hear / read this terminology in IBD quite frequently, but never in PE, although I feel like it's harder to shine at these levels in IBD vs PE ? (especially at the Associate level given narrower scope of responsibilities / less space to differentiate yourself).
I can see how the concept applies to both at a more senior level (bringing multiple & lucrative deals in IBD // track record in PE).
If applicable, what is a junior "superstar" in PE ? The answer must be equivalent to past conversations on "the good vs the great" (https://www.wallstreetoasis.com/forum/private-equ…) or on "How to be a top PE Associate" (https://www.wallstreetoasis.com/forum/private-equ…), unless I missed something ?
Based on the most helpful WSO content, the concept of a "superstar" can indeed exist in PE at the junior level, although it might be defined differently than in IBD. In PE, a junior "superstar" is often someone who not only excels at their given tasks but also goes above and beyond in their role.
Here are some characteristics that could define a junior "superstar" in PE:
Value Addition: They are not limited by their job description and constantly look for ways to add value to any project they are part of. They are encouraged to voice their opinions and disagreements, as long as they can back them up with sound rationale.
Professional Development: They are constantly looking to grow and develop their skills. They are not content with just following the prestige and money, but are actively trying to find their calling and what they truly want to do.
Work Ethic: They are willing to put in the long hours required in PE and do so with a positive attitude. They understand that the benefits of PE are vast, but it requires hard work and dedication.
Resilience: They are resilient and do not get discouraged by setbacks. Instead, they use these as learning opportunities and come back stronger.
Passion: They have a genuine passion for investing and finance. This is not just a job for them, but something they truly love and are interested in.
Remember, these are just some of the characteristics that could define a junior "superstar" in PE. The exact definition can vary depending on the firm and the individual.
Sources: Does "good culture" exist at the pre-MBA level in PE?, Why The Grass Isn't Greener: The Private Equity Associate Crisis (PEAC), Q&A - 1st Year PE Associate at a US MF in Europe (KKR, BX, TCG, WP, TPG, BC, APO), Q&A: European PE professional at a Large-cap Megafund, Where are the real pre-MBA superstars?
I found the threads you linked to be very helpful.
Sorry to bump this but I am curious on a related although slightly different question now : who are the rising PE stars at the moment ? Is there any name standing out, like super smart people who could end up being in PE-revisited Caesar’s Palace books of the coming years ?
PE is largely team based outside of sourcing deals. It is hard to stand out as a junior other than just being exceptionally good at the roles and responsibilities of a junior unless you somehow manage to source a bunch of successful deals. Either if you do source amazing deals, you probably won’t get credit as you aren’t the “lead” .. making it even harder to stand out. So while there are absolutely some superstar associates and VPs in PE, they are a lot harder to identify than in IB or a HF where success is much more easily measured and quickly measured (meaning you don’t need to wait for the investment to exit 5 years later).
It does make sense - thank you!
only if you source very good deals or ideas. you'll hear about the MDs that were associates when they helped pitch unicorns early which ended up being massive wins for their funds propelling their career.
I think people are underrating the importance of being good at execution at the junior levels. The role of the associate is to create capacity for senior investment team members. I think associates/VPs can differentiate themselves by being very good at that.
bump
Would it be easier to find star aso and vp people at VCs then? Given the greater emphasis on sourcing at these groups
An aso hire in our group sourced 2 deals within 2 years, so yes, it’s possible.
I think the concept exists in that there are associates that are total rock stars at their jobs and are far and away better than their peers. However, I've not seen a situation where that top performer is really recognized or paid significantly more than the others in their class. Specifically, from my experience, all associates get paid within a pretty tight band (maybe the top performer gets an extra $10k, but nothing meaningful), vs. in banking, where I've seen situations where a top performer got an extra tens of thousands of dollars vs. whatever the standard top bucket was, which was already tens of thousands of dollars above the average.
There is a crystal clear bifurcation not sure about what ppl are referencing. It affects promotion and political capital (impact of which is not to be underestimated)
I don't think it has anything to do with who is actually good at their jobs. Once you hit a slightly better than average skill level, I think it's all political nonsense who the partners consider to be rockstars.
You might be jaded. I’ve found that high performers (objectively speaking) tend to be the most successful over the long run. Politics always matters, but I think most people have an innate sense of who are the biggest contributors and it’s hard for politics to displace that.
I am sharply disgusted by politics, but am in the process of understanding that « managing up / your manager » is a skill in itself as well. I understand what you mean, although I agree that in the long run I doubt politics only makes you a well-regarded partner within the industry. That being said, « managing-up skills » could be the cherry on top of everything else, and turn a rockstar into a fast-track to partner rockstar.
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