Pros and Cons of PE "Two and Out?

A few quick perspectives:

Pros of Two-and-Out:

• Strong business school placement (these shops often have long lineage of placing at H/S/W, often supported by them also hiring graduates from these schools (not necessarily the same associates who left))
• Role acceleration: Frequently those who do a 2 year associate program then MBA can land post-MBA VP roles (so 4 years to VP) vs. shops that promote through may require 2-3 years of associate + some time as senior associate (e.g., 2-3 years) to reach the same title
• Some strong associates can return after MBA and potentially also receive tuition sponsorship

Cons of Two-and-Out:

• Associates are more transitory and treated more like "resources" since the firm knows they're not permanent, so team members may be less likely to invest in relationships and development
• For those who do 2 years then MBA, many former associates struggle to place post-MBA at firms on-par with where they left, particularly if non-diverse (e.g., I saw many mega fund associates fight for LMM VP roles in business school)
• No job security: Need to either find a new job after 2 years or go to business school (vs. firms that promote through and offer a multi-year path at the firm); leaving also requires continually re-building one's reputation and learning a new firm's style/processes 
• Increased pressure on getting deal(s) done during 2 years, given this will be your bedrock for future recruiting (if you choose to stay in the industry); inherently adds stress and some competitive tension amongst associates