How competitive is it to make VP / Principal at UMM / MF PE?
Curious about the competitive dynamics / important traits of people who make it to VP at UMM / MF PE. Seems like there is a funnel of 1) some IB analysts decide to forgo recruiting for MF since it's essentially banking 2.0 2) PE ASOs don't see a long term career in MF PE, may move downstream, HF, out of finance
Would love to hear from more experienced ppl - does it come down to love for investing, grinding it out, being super smart / technical, etc.
The difficulty doesn't lie in competitiveness amongst your peers as people have mentioned it is largely self-selection. The real issue is related to timing and luck as it relates to headcount planning. VP/Principal needs are often related to:
(1) When the next fund is being raised
(2) How big it will be (based upon the performance of prior funds over which you have near 0 control)
(3) Which sectors or teams need a VP
(4) Whether the partnership needs to hit diversity or other LP requirements for a certain number of women, etc. at the fund
(5) Whether someone else from B-school, a portfolio company or another fund has already been lined up for the spot years in advance
As someone that very nearly pulled the trigger on getting back into private equity at the mid-senior level, there are numerous other considerations that will instantly ding people that they won't find out about until years later if ever. There is so much politics at large funds as it relates to seats / carry. The PortCo exec life is relatively simple though you obviously have less control over strategic decisions.