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Based on the WSO threads, the discussion about PE firms that do not strictly adhere to the "2-and-out" model or require an MBA is quite nuanced. Many firms have moved away from this traditional model, but specifics can vary widely depending on the firm's size, focus, and culture. Here are some general insights:
Large Funds: Larger PE firms, especially those managing funds of $2B or more, may offer more flexibility in terms of career paths and may not strictly enforce the "2-and-out" policy. These firms often have the resources to invest in longer-term development of their employees.
Firm Culture and Policies: The culture and internal policies of the firm play a significant role. Some may value the continuity and deepening of expertise that comes from retaining talent beyond the typical two years.
Networking and Direct Inquiries: To get a more accurate list of firms that fit this criteria, networking with industry professionals and directly inquiring with firms during the recruiting process can provide more specific and current information.
WSO Company Database: Utilizing resources like the WSO Company Database can also help in identifying firms by fund size and understanding their typical hiring and operational practices.
For someone at a BB (Bulge Bracket bank), leveraging your network and the resources available through platforms like Wall Street Oasis can be particularly effective in pinpointing opportunities that align with your career goals.
Sources: Not Having an MBA can be a Good Thing, Which PE firms still require an MBA?, How are MBA Programs Outside the Top 14 Viewed?, William Blair Reputation/Top Groups/Exit Ops?, Did my GPA screw up my application?
Off the top of my head, some firms that don't require an MBA for Associate to VP promotion:
Apollo
HIG
LGP
Warburg Pincus
American Securities
KKR
Audax
One Rock
Ares
Silver Lake
TowerBrook
Add Vista / Thoma to this list
Any more MM/UMM names? I am assuming most of the MF's and larger UMM's(LGP) filled out their associate class already, and I am sadly going to have off-cycle because I originally thought I wanted to stay in IB.
Altamont Capital partners
Contrary - anyone know which PE firms ARE two and out? Requiring MBA for promote
TPG
TPG does direct promos too
I believe BX/Carlyle/KKR(some promotes, but VERY rare)/Warburg(same story as KKR)/ are all either 2 and out or proto 2 and out amongst the US MF's. Veritas is also one that comes to mind as a 2 and out, as does the Chicago Big 3(not sure if they changed, but heard they were 2 and out previously). The best US MF's for direct promotion are Thoma/Vista/Apollo.
Veritas was traditionally 2-3 and out but in recent years has direct promoted a couple of associates and sent a couple to MBA with return offers. Only a small number have gotten the promo - maybe as expected - but the 2-3 and out isn't a hard and fast rule.
H&F, genstar
are you sure about genstar? can see senior associates that dont have mbas coming from associate classes
Think the majority of firms at this point are no longer 2 and out, given how few people want to spend $$ on MBA. Even some of the "2 and out" firms have started keeping 1 top performer or something along those lines
It's worth mentioning as a priority to HHs but it'll be a very long list if you're open on fund size...
TBH, I don't really mind strategy, personal things I actually care about are not 2 and out, room for promotion, and growing fund sizes. I don't have an industry preference and have enjoyed working across a variety of industries(in an M&A group), so not even sure how to further narrow it down. I would love MM/UMM firms that fit that criterion, if possible since I understand that the mega fund seats are most likely filled by on-cycle.
Can we get marketing of any type off this forum
Honestly, lots of them now will at least consider letting top performings stay on. They may only like 2/3 a class to keep but they are not forcing everyone out. I think Carlyle is one of the few that is still pretty adament that you leave and get an MBA
Forget that “decent fund size” comment man I’m sure Baum Capital Partners in Kansas City won’t push you out after a quick two if you ask nicely
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