Leaving PE Firm

Hi All: looking for some advice. I currently work as a second year Associate at a PE firm but have received a verbal offer at another fund (public equity). My fund is not a traditional 2 and out and I will likely get promoted if I were to stay and have had prelim. conversations on my longevity at the firm. Bonus cycle is September but looking to leave before then to take some time off given start date is in the Fall.

Has anyone been in a similar situation? How did you manage communicating to your team you were leaving? Did you get your bonus pro-rated or did you have it fully paid out? I have good relationships with people here and performance has been good, so reference checks post leaving will be fine.

Thanks!

 

Based on the most helpful WSO content, here are some insights and advice for your situation:

Communicating Your Departure:

  1. Timing and Approach:

    • Schedule a meeting with your direct manager or team lead to discuss your decision. It's best to be upfront and honest about your reasons for leaving.
    • Highlight the positive aspects of your experience at the firm and express gratitude for the opportunities provided.
  2. Professionalism:

    • Maintain a professional tone and avoid burning bridges. Emphasize that your decision is based on personal career growth and not dissatisfaction with the current firm.
    • Offer to assist with the transition process to ensure a smooth handover of your responsibilities.

Managing Bonus Payout:

  1. Pro-rated Bonus:

    • Given that your bonus cycle is in September and you plan to leave before then, discuss the possibility of receiving a pro-rated bonus. This is a common practice, especially if you have maintained good performance and relationships.
    • Approach this topic diplomatically, perhaps during your resignation discussion, to understand the firm's policy on pro-rated bonuses.
  2. Full Bonus Payout:

    • While less common, some firms may offer a full bonus payout if they highly value your contributions and want to maintain a positive relationship. This might be more likely if you have had preliminary conversations about your longevity at the firm.

Additional Considerations:

  • Reference Checks:
    • Since you have good relationships and your performance has been strong, ensure you leave on good terms to secure positive references for future opportunities.
  • Taking Time Off:
    • If you plan to take time off before starting your new role, communicate this clearly to your current firm. This can help in negotiating your departure timeline and any potential bonus payout.

Example from WSO Threads:

  • In a similar situation, a user mentioned that they had a conversation with their boss, who understood their decision and even acknowledged that they would make the same choice. This highlights the importance of clear and respectful communication.

By following these steps, you can manage your departure professionally and potentially secure a pro-rated bonus. Good luck with your transition!

Sources: How have you quit?, 2 successful years at the firm, 2 years of 0 bonus and minimal pay rise, 2 successful years at the firm, 2 years of 0 bonus and minimal pay rise, How to Respond to Question in Bonus Communication ("What's Your Reaction to That?"), How to leave your IB analyst job?

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

Hey, just sit down and talk to your manager.

First and foremost you want written offer not verbal to be sure. Now, once you have a written offer, you can sit down with manager and explain that they can either promote you now and match the offer ( and give some more $$$) or you will be thinking about leaving. Do this only when you have a contact from other firm. Verbal offers don’t mean shit.

Now, if your current firm values you, they will do everything to make you stay. If not, you have your answer.

In terms of communication, it was easy. They didn’t match and I left. But usually people give 2 week notice to be on good terms in the future. You can definitely ask for a prorated bonus but I’d think about timing ( do it before you announce your leave)

 

Bad advice. No firm you are leaving will ever pay out any type of bonus, prorated or not. Why would they? It's always the new firm that pays it to incentivize you to leave.

And this is not how it works in PE for promotions either. In corporate, maybe, but PE has very set timelines and it's immature to try and pistol-whip them into a promotion.

If you want to leave, politely give them notice and do everything you can to hand things over cleanly. But asking for a promotion or a pro-rated bonus is only going to get a bad reaction.

 

The only way to truly “guarantee” you get a decent bonus is to delay your start and departure until after it hits. Some firms will still pay it out but many will not, and the sad truth is there isn’t really much you can or say if you leave beforehand. Even if they do, there is a good chance it is small relative to what you otherwise may have gotten. I definitely understand wanting to travel but is there any way you can delay the HF start? Unlike what a previous comment has said, if you have no intention of staying, I wouldn’t ask them to match. Because if they do match and or even go above that, you’ll look pretty dumb by still leaving and could risk burning bridges as you clearly never intended on staying.

 

Impedit libero amet vel explicabo consequatur voluptas et. Officiis exercitationem aperiam culpa dolorum. Itaque provident illum maiores. Ipsum ut odio doloremque eum nihil magni autem voluptas. Molestiae adipisci aperiam omnis repellendus. Aspernatur est facere voluptates reiciendis odio molestiae autem.

Career Advancement Opportunities

June 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Warburg Pincus 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

June 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

June 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

June 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $268
  • 1st Year Associate (389) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (316) $59
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

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...”