From Senior Associate to VP
For those of you that have gotten the promotion from Senior Associate to VP, what were some of the key factors you believe contributed to your promotion? Additionally, if you were part of a great associate pool and you were the one that made it up, what were the key differentiators between you and the other associate(s) that did not make it (assuming they were asked to leave).
There's some imposter syndrome kicking in, as it relates to doing the other part of the job. The analytical stuff is fine; however, the other area that i see the strong VPs excel at, proprietary deal sourcing, managing a process from end-to-end is something i cannot say I am 100% comfortable with or have done. How did you set yourself up in that regard? Sometimes i feel like i should be doing more. Maybe I'm just in my head.
Being a Senior Associate is such a shitty position. You’re expected to do the model and all of the data crunching analysis while showing you can “play up” by managing the process. Meanwhile the VP that the firm hires out of business school has only 2 years of Associate experience (compared to a Senior Associate that has 2-4), but gets a free pass from all the day to day analytical work b/c they have the VP title. So at the end of the day, no shit they are going to be better prepared to lead calls and talk intelligently to IC about the deal because they have their Associates do all the analytical work. Such a double standard for what it takes for PE firms to hire VPs out of business school (couple of interviews and case studies) vs. getting promoted from within. Just my 2 cents as a disgruntled Senior Associate that wished they went to business school.
I'm in a US MF but Europe based so MBA isn't really a thing, nobody leaving for or joining from business school. VPs are typically promoted internally, external hires are usually to fill a gap at VP level (particular investment type or region of coverage). Focus on special sits so not sure if the below is as relevant for LBOs.
To make the jump from SA to VP, I think you need to show two things: i) ability to take on VP+ level workstreams and ii) ability to grow from "data cruncher" (models / IC materials etc) into deal leader / originator. This is pretty obvious but a lot of people struggle with this.
On the first point, the best way to show this is asking your VP can you take a first pass at their deliverables. I.e. scoping DD, setting up skeletons for materials, doing first review of legal documents etc. If you're doing it well, it should reduce their workload a lot of allow them to focus on taking on Principal / Director level workstreams. This is a pain given you're also likely managing an Analyst / Junior Associate below you, but it makes it clear you want to step up to VP and are capable of doing so. I think legal workstreams are the key demonstrator of capability. A competent SA should have no issue scoping DD / skeletons for materials, taking responsibility for the first review of the SPA / Facility Agreement is a different skillset and where you can really demonstrate commercial acumen (or a lack of it).
The above also somewhat covers showing ability to become a deal leader. On top of this, I'd always be looking ahead for potential issues and making sure they're addressed before they come up. Put the process timelines down on a calendar and back out when you need different materials done / reports in / DD completed etc to make sure no last minute fire drills arise for workstreams which are supposed to be in your control. On origination, (fund dependent) this isn't a key SA or VP responsibility but many funds will take this into consideration when offering you VP. There's a limited number of VP seats and the MDs / partners will want to offer them to people who show the ability to become one in time. To add value on it, find gaps in your team's coverage. If you're at a MF and your MDs are getting in bounds from BBs all day, go meet the MM / UMM IBs to potentially source add-ons for your PortCos, or to identify companies which could be potential acquisition targets in 3-5 years if they go through a further period of strong growth and reach a size where they're suitable as MF investments.