Lateral Referencing - Need Advice

Hi everyone,

I’m looking for some guidance from some of the more senior members of this forum.

Bit of background: I did 2 years of banking then lateraled to an associate position at a firm focused on investing in a niche sector. Long story short, given a combination of firm culture, politics, and lack of mentorship which resulted in me not ramping up as fast as I could’ve, I did not perform well and was pushed out in a year. Would caveat that it was a mutual understanding that it was not working for both me and the firm, and when I left I did so in a professional manner as to not burn bridges (2 week notice, made sure I rolled off everything properly, spoke with each senior, etc.). I lateraled to a different firm in the same space.

Now 3 years later, I’ve tremendously learned a ton and improved my professional skills at my current firm. I was promoted to senior associate around a year ago. I like the people and I’m content with the situation. That said, I was recently given notice that I would not be given the VP promotion. The seniors at my current firm indicated this was due to lack of need, rather than performance, and they’d be happy to provide references as I recruit. 
 

Now, my concern is if I were to pursue an opportunity in this same space, the firms I interview with will reach out to my old firm for an under-the-table reference (there are only a few real players and everyone knows everyone). I’m concerned that they will provide negative feedback based on my time there almost 4 years ago, which I feel is not an accurate representation of my capabilities, which have improved since I left. How should approach this as I recruit? Should I pre-emptively offer they contact my current firm for references? Try to contact the people at my former firm and gauge their temperament towards me? As a senior, what have you seen / done, when you were in a position where you had to provide references? Or should I accept that nothing can be done and apply for B-school, and hope to break back in after 2 years?

9 Comments
 

Based on the most helpful WSO content, here are some strategies to consider:

  1. Proactively Offer Current References:

    • Emphasize the positive feedback and references from your current firm. Highlight your promotion to senior associate and the skills you've developed over the past three years.
    • Ensure that your current references are prepared to speak highly of your performance and growth.
  2. Reach Out to Former Colleagues:

    • Contact individuals from your previous firm to gauge their current perception of you. This can help you understand any potential negative feedback and possibly mitigate it.
    • If you left on good terms, some former colleagues might be willing to provide a balanced or even positive reference.
  3. Address the Issue Head-On:

    • During interviews, be upfront about your past experience. Explain the circumstances at your previous firm and how you have grown since then.
    • Highlight the mutual understanding of your departure and your professional conduct during the transition.
  4. Consider B-School:

    • If you believe that the potential negative feedback from your previous firm could significantly impact your chances, applying for business school might be a viable option.
    • An MBA can provide a fresh start and new opportunities to break back into the industry at a higher level.
  5. Leverage Networking:

    • Use your network to get introductions and recommendations from people who can vouch for your current capabilities.
    • Building strong relationships within the industry can sometimes outweigh a single negative reference.
  6. Prepare a Strong Narrative:

    • Develop a compelling story that showcases your journey, the challenges you faced, and how you overcame them.
    • Focus on your achievements and the value you can bring to a new firm.

By taking these steps, you can better manage the potential impact of your past experience and present yourself as a strong candidate for future opportunities.

Sources: PE Lateral Recruiting Advice/Stories/Help?, Q&A: Former MBB Consultant, Consulting Recruiting 2023, Private Equity Reference Check, Burned Out - Quitting w/o an offer?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Rerum nam maxime in quia iusto molestias. Et officiis molestiae natus dolorum. Perferendis quasi quos earum delectus pariatur aut reiciendis. Corporis aperiam et assumenda et sed. Fugiat dolores illo fugit reiciendis.

Exercitationem ut nobis est dolore ut. Nisi excepturi eum blanditiis amet vel. Dolore ut tempore asperiores autem eos vero. Voluptatem ut optio omnis animi voluptatem aut ipsa temporibus. Eligendi id nemo et fugiat nobis nihil consequatur rerum.

At sapiente quis voluptate cumque aut ad. Architecto magni quis velit pariatur nostrum sed. Molestiae ut qui harum iste sed. Dolorum quia ratione consequatur provident ut repudiandae vitae. Fugiat quae et earum id ut dolorum iusto aut. Inventore id fuga reiciendis rem rem assumenda ut. Quibusdam architecto blanditiis numquam voluptatem saepe.

Architecto voluptatum dicta fugiat numquam adipisci. Numquam rerum consectetur explicabo architecto et qui. Officia aliquam qui et nulla soluta. In ipsa et ad et est. Quia voluptas aut alias numquam et.

Career Advancement Opportunities

June 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Bain Capital 98.1%

Overall Employee Satisfaction

June 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

June 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

June 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (98) $365
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (355) $62
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”