Post associate stint planning?
Currently wrapping up my first year associate program at an UMM. I’m applying to business school but don’t think I’ll get into H/S, will maybe get into Wharton if I’m lucky (overrepresented profile, not great historic performance from my fund in admissions). I don’t think there will be a seat for me to stay - senior associate year is likely but only ~10-20% of associates will get a VP seat so unlikely to make VP here.
I reasonably like the work and am hoping to stay in PE. Would happily stay at my fund if they gave me a VP offer.
How do I think about what’s next? Do I go to a non-H/S business school and go through recruiting that way? Have heard anecdotally post-MBA recruiting is tough without a return offer so that makes me nervous.
Do I start recruiting for senior associate roles now? Do I take senior associate year here and try to go somewhere else as a VP?
I’m in a non-NYC city now and hoping to stay here which makes it tougher. Id be fine going to a solid MM but hoping to stay at a similar tier of fund (I.e, don’t want to go to a no-name LMM fund).
Does anyone have tips on what to do next? Where do most associates go that don’t go to HBS or get a VP promote?
Bump also worried
I think you should start with thinking through how important b school is to you and if it is something for experience, branding, time off, etc. that you feel you just have to do. If it is, then it's something you should do at any m7.
If however b school is something you're interested in, but you are moreso focused on just PE career optimization (b school or not), then you have some decision making. Reading between the lines in your post, it sounds like this is you. It also sounds like career optimization in your mind would be staying at the current firm with a direct promote (or return offer). Have you asked them if this something on the table for you?
Disagree with any M7. Going from a top PE firm to anything other than H/S/W is conspicuously divergent.
If you’re at a run of the mill MM firm sure, probably fine. If you’re at CD&R, Bain Cap, H&F etc and you go to Northwestern/MIT/Columbia/Booth, it’s obvious that you didn’t get a return offer and you didn’t get into HSW.
Those are 2 consecutive data points that suggest you got to a top seat and performed at the bottom of your class. Not saying that’s true, but that’s the perception when ppl don’t have much else to assess you on when looking at a 60 candidate spreadsheet with from Henkel.
Hm yeah, you're probably right. If you want to leave industry, probably still good at any of the m7 but for staying in PE I think I agree.
More broadly, does anyone have advice on best practices when switching firms after two years in PE?
E.g.:
Timing for recruiting / how much is head hunter driven vs networking driven
Dynamics of switching strategies or fund sizes
Expectations of how much of a step back you would face in next role
Bump
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Genuine question, why do people jump to PE if they know that it is almost impossible to build a career there? Why not just stay in IB? ...
Why do people start businesses if they're just going to fail
It's not impossible. It's frustrating if you have geography constraints, etc. and it's hard to move around fluidly (due to carry), but it can be done - just may take some moving around, short-term pain, etc.
TBH If you're at a UMM fund, simply ask yourself if your brand / current fund is reputable enough to even care (you obviously will be biased so my rec is to ask someone senior (preferably a mentor or at a different fund), or a buddy who is undoubtedly at a "better/more reputable" fund than yours)? For example, there's only a select few UMM's that I would say are in the H/S-tier of b-school placements. Anything else, you kind of fall in the "meh" category just like everyone else who isn't at top name funds. No offense here at all. Just being realistic. The world of blue chip PE is very very small, and if you're doing it for that sense of worth...are you really doing it for the deals/work itself? Is PE really for you? If you're a prestige-whore then by all means, but as one gets older prestige starts to hold less meaning and wlb/family/quality of life/career progression (in any form) etc. starts to take priority.
Brand is only so important. Unless you're at a significantly known fund and have a lot to lose from your next move, my guess is just follow your next step and even if it's not H/S, you should be fine because there's definitely more "meh's" out there than blue-chip brand PE ppl.
I have friends who are at some of the best PE funds mentioned above, and they have no thoughts of letting go of that brand they've acquired. I fully respect it and understand given how limited those PE opps are. I would say if you're in the "in-betweens", this whole brand thing doesn't matter as much especially as you progress in your career. A PE role in general is extremely coveted for the type of work you do/comp/investment opps presented to you etc. regardless of the fund prestige. Once you're in the industry and in an investor role, it's simply a matter of giving yourself a reality check and understanding where you fall in the small world of PE.
This is really helpful - what is your shortlist of those specific "blue chip" names?
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