PE Associate Skill Progression (Y1)
Wanted to publicly post my situation to hear feedback and see if others can opine. I’m sure others are in a similar situation starting PE roles. As a bit of background, I’m a 1Y Associate at an established MM/UMM fund that has a focus across multiple different verticals.
I’ve been on the job for around 7-8 months now and have already had one review cycle, essentially highlighting my strengths in analysis and overall deal execution. I’d like to think I’m on top of everything and have started to better develop an investor mindset. The key feedback I got was really around being more vocal and taking ownership of my viewpoint on deals as we’re reviewing. So not just reading the CIM to have a general sense of the deal, doing the initial pre IOI analysis, market research, basic modeling, and then sending off. But actually adding more insight on the clear observations I’m picking up on that would make this worth pursuing or not as a potential investment.
I’ve definitely been more proactive on that front but still feel as though I’m not doing enough in terms of speaking up during management presentations, banker meetings and follows ups. I’ve only gone through a few MPs, but have come away asking maybe 2-3 questions, and not at all once. I’m generally not an outgoing personality but feel these conversations are dominated by my Partner or Principal/VP and others more senior. It still feels odd to find the right time to jump in and although my firm is not super bureaucratic, I still feel like maybe I’m too early to be taking over parts of the conversation.
I guess I’m both curious to see if someone can relate or outline what the typical progression is for Associate responsibilities and just give general advice on how to be more vocal. As of right now I’m pretty much doing all the same deal execution monkey work like banking, and not speaking up like in banking (although that was expected then). Maybe that’s what is expected of me, and I’m overthinking it. Maybe I should just have a conversation with my VP where I express this and ask for tips. And maybe, I’m just not cut out for transactional work. It’s also hard to benchmark myself against others because our industry teams are pretty siloed. I’d really like to receive a Sr. Associate offer at my current form and although I’m confident I’m doing well, I don’t want to be surprised come Y2.
Based on the most helpful WSO content, it's not uncommon for new PE associates to feel the way you do. The transition from an execution-focused role to one where you're expected to contribute more strategically can be challenging, especially when you're surrounded by more experienced colleagues. Here are some tips that might help you become more vocal and take ownership of your viewpoints:
Preparation is Key: Before meetings, take the time to thoroughly review all the materials and think critically about the deal. Come up with a list of insightful questions or points that you can bring up.
Find Your Moments: Listen actively during discussions and look for opportunities to add value. It could be a unique insight you have or a question that shows you've done your homework.
Speak with Confidence: When you do speak up, be clear and assertive. Confidence can come with time, but it starts with believing in the value of your contributions.
Seek Feedback: After meetings, ask for feedback from your VP or Principal on your participation. They can provide guidance on when and how to contribute more effectively.
Mentorship: Consider finding a mentor within the firm who can help you navigate these challenges and provide advice based on their own experiences.
Small Group Settings: Try to find smaller settings or one-on-one meetings where you might feel more comfortable speaking up.
Practice: Role-play scenarios with a colleague or mentor where you practice interjecting and leading parts of the conversation.
Observe and Learn: Pay attention to how your seniors handle discussions. Note their timing, the types of questions they ask, and how they present their viewpoints.
Incremental Steps: Set small goals for each meeting, like asking one thoughtful question or making one key point. Over time, this will become more natural.
Remember, it's a marathon, not a sprint. Developing a strong voice in deal discussions takes time and practice. Your awareness of the need to improve is the first step, and with a proactive approach, you should be able to make the necessary progress. Keep at it, and don't hesitate to express your concerns and seek advice from your VP. They were once in your shoes and can likely provide valuable insights.
Sources: Q&A - Post-MBA VP, Roadmap for IBD Coverage Associate to Career Banker, Q&A: GS/MS IB Analyst —> Megafund PE Associate —> HBS/GSB Business School, Q&A: UMM PE VP, Life at Mega Developers
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I know very few first year associates who weren't given that exact feedback. I honestly think they just copy and paste it around because they don't have enough data points to actually give you a real review after 6 months. 100% serious about this. No one actually expects a first year associate to have truly meaningful insights, so as long as you're engaged and proactive, don't worry about it.
Damn at least you are getting deal reps. All i have done at my umm fund has my portco work since I joined in the summer. Maybe just got a crappy staffing situation but all of my portcos are not doing great and have sucked up all my time doing operational work with them.
Feel like an in-house banker and not getting the investor training I had signed up for though I guess Im also in a fortunate position to be with a job at a brand name in this market environment
Hey there, genuine curiosity if you would not consider PortCo deal work as doing deals? Just wondering from a perspective that PortCos - if they're on the early dev side like a renewables developer, you'd be the inhouse M&A guy to bootstrap the investment process // conversely PortCos that are in the billions (EV), asset management work would still involve reviewing / partnering with the in-house Corp Dev / M&A team. In the basket of experiences between these two goalposts, wouldn't the experience (though not the same) as outright buying a NewCo still be considered "deal reps"? Still putting on an investor's hat albeit perhaps more vanilla & probably less complex?
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