senior associates that don't make it to VP

what's the percentage of senior associates (at LMM and MM firms) that don't get promoted to VP? if the firm promotes you to senior associate, that's pretty much VP in training, so you're more likely than not to get promoted to VP, right? So, is it like 80% chance you'll get promoted unless you really underperform?

while the typical senior associate to vp promotion is 1 year, are there exceptions where a senior associate is not quite up to par for VP position but the firm doesn't push them out, so they stay on for another year as sr asso?

3 Comments
 

Based on the most helpful WSO content, here are some insights regarding the promotion from Senior Associate to VP at LMM and MM firms:

  1. Promotion Likelihood:

    • The promotion from Senior Associate to VP is not guaranteed. While being promoted to Senior Associate can be seen as a step towards VP, it does not ensure the promotion.
    • The percentage of Senior Associates who do not make it to VP can vary significantly depending on the firm and individual performance. There isn't a specific percentage provided in the knowledge base, but it is implied that not all Senior Associates will make it to VP.
  2. Performance and Promotion:

    • If a firm promotes you to Senior Associate, it can be seen as a VP in training, but this does not mean an 80% chance of promotion. Performance and fit within the firm play crucial roles.
    • Underperformance or not meeting the firm's expectations can hinder the promotion to VP.
  3. Duration as Senior Associate:

    • The typical duration for a Senior Associate to be promoted to VP is around one year.
    • There are exceptions where a Senior Associate may not be up to par for the VP position, but the firm does not push them out. In such cases, they might stay on for another year as a Senior Associate.
  4. Firm-Specific Practices:

    • Practices can vary widely between firms. Some firms may have a more structured promotion path, while others may be more flexible or stringent based on performance and firm needs.

For more detailed and specific information, it would be beneficial to look at individual firm practices or consult with current or former employees of those firms.

Sources: A Real Disscusion about Promotion in PE, How to tell the prestige of LMM or MM PE firms?, IB Associate and VP Exits - Where are you now?, From Senior Associate to VP, What’s associate / senior associate pay at LMM PE firms like Riverside / LLR Partners?

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

I’ve seen it often that 50% of senior associates get the promo. A senior associate is just that - an associate with a bit more experience who is paid slightly more. They typically aren’t getting carry or any significant comp, so if someone is willing to do a 3rd associate year, most funds are thrilled. They’re much more productive than a normal associate (in theory) and not much more expensive, so it’s a good trade.

VPs are very different, you only need so many at a fund (can’t usually staff a VP to go build a model), and they’re expensive (cash and carry) which makes that a much bigger choke point

 

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