PE Firms with Large VP Classes
I'm considering next steps for my career and noticed that some firms have much larger PE VP classes compared to mine, especially tech funds and the ones with direct promote. At these firms, is it more of a "sink or swim" environment where only a few get promoted? My firm has a different approach at the VP level; we’re very selective about who we bring on, but if you prove yourself, you have the opportunity to stay. It feels less zero-sum and at a certain point, I don't want to have to worry about this anymore. That being said a few firms I noticed this at are SLP, Vista, Thoma, and FP. Does anyone know any others?
Based on the most helpful WSO content, here are some insights regarding PE firms with large VP classes and their promotion dynamics:
Promotion Dynamics:
Firms with Large VP Classes:
Other Notable Firms:
These firms are known for promoting internally and may have larger VP classes, but the competitive nature can vary. It's essential to consider the firm's culture and promotion track record when making your decision.
Sources: A Real Disscusion about Promotion in PE, No VP Promote from Sr. Associate - Seeking Advice, How you chose your (middle market) PE fund?, Q&A: Big4 Consulting to Private Equity, now M7 MBA, From Senior Associate to VP
Well, wouldn't assume you have less to worry about. Yes less to worry about for Assoc > VP but potentially more to worry about for VP > Principal
Getting to VP is one hard step then going from Sr VP / principal to Partner is another level. I think if you have a fund (Cerberus for example) that promotes to VP, go there get VP then figure out the types of funds you want to be partner at. Very few 8+ year runs at the same firm - there isn't a real partner track anymore
cerberus is cracked and i got mad respect for steve feinberg's blue collar background, but man, they have way too many MDs to count.
Just from what i've noticed.. funds that promote well up to Principal level: TSG (fast promotion schedule), Apax (if you started as associate), WP (this is a mixed one they hire so many associates who churn out anyways)...Doesn't promote that well: KKR, Permira, HF (selective af)
others on here have mentioned H&F as promoting 1 out of 10-20 associates to the next level (which i think they call principal)
Not true anymore. Lots of self selection (WLB is brutal and find performance weak for last 3 funds). Also more promotes in recent years. Combined result is way higher promo rate
Large VP classes? Sounds like the right place to avoid for an associate
At Thoma and Vista, you can probably attribute the large VP classes to the fact that you're looking at VPs across three different funds. Just looking at both of their flagship funds will probably yield a count far more similar to other MFs.
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