Take the Layoff or Quit?
Senior Associate at a middle-market fund (~3 years). I’ve been told there won’t be a seat for me after year-end, though they offered a generous exit package + severance. They were clear the decision was not performance based, and seniors would be happy to provide references.
Considering resigning instead so I can frame it as a voluntary departure when recruiting, rather than a layoff - aware this means walking away from the package. Any thoughts or advice would be welcome.
Take the severance
You're an absolute moron if you don't take the severance package.
Bumping what the guy above said. If you don’t take the severance you’re a moron. Yes it may show as a layoff but 1) it’s non performance, 2) hopefully they’ll give a strong letter if your performance was really that good
Yeah but the first thing people will think when they see “layoff,” before even speaking to you, is that it was performance based. So I want to avoid that by saying I left on my own accord.
Think of this from the other side, if you saw someone that said they quit and it wasn’t related to performance the person who probably question why you left if it wasn’t related to performance. They may believe it was one of those we’re going to fire you or you can leave for performance issues and you chose to leave. I would echo what everyone is saying take the severance.
Don’t be dumb, take the severance. There’s several opportunities out there and having that severance check still fresh in the bank while starting a new high paying job will set you will up well.
I agree.
Quit and don’t take the severance.
Your pride and ego is way more important than money.
How is this even a debate? Think through the interview script:
Option A - Take the Severance: “I’m wrapping at my current fund in December, excited to get started in January. I had a great experience but my firm didn’t have any VP openings. Happy to provide references, was just bad timing.”
Option B - Quit: “I left my firm in November. Taking some time off to find the right opportunity. Ready for a fresh start.”
Me: “So your program was 3 years - was there an opportunity to stay on? What drove you to leave? Why did you leave without another job lined up?”
You: “There likely wasn’t a path (bad timing), but I left on my own.”
…you end up no different besides less free cash and a more pronounced resume gap.
Also, they’ll just back channel to your firm anyways and get the story, so might as well take the money.
Stop falling for rage bait. And stop always giving good advice 24/7.
Come join me on the dark side and start trolling these idiots.
Ha, sometimes I do wonder if I’m being taken…
This chimp knows ball. Take the severance!!!
You have to be a complete absolute retard to not take the severance.
You have to be a complete and absolute retard to post the same thing 5 other people have said in hopes of getting likes
Can you negotiate ongoing employment in lieu of severance? Same dollar amount but you get to stay employed while you’re looking for your next gig.
Would try to negotiate for them to give you severance while keeping you on the website for an extended amount of time. Gives the air cover to recruit from position of strength.
Agree with SaaSChimp above completely. People hiring for VP's understand there just aren’t enough seats at the VP level at every firm, and nobody worth working for is going to read a non-performance cut as a mark against you.
I had a near-identical situation, got an offer from a MF PE firm as an associate that gave me the choice of doing an MBA to stay on for a senior associate role post-MBA or taking a layoff with severance plus reference letters. The partners were genuinely helpful, and it didn’t meaningfully hurt my search for a senior associate role at all. I landed at a large-cap UMM that, in hindsight, has been a blessing, my new firm has significantly outperformed my old one on fundraising, performance, and DPI. Everything happens for a reason, and the right way to see this is as a chance to find something better with your old seniors actively backing you.
These older PE firms that have existed 20-30+ years are so bloated at the VP level that at some point they simply have to stop promoting people into VP within a given coverage area, there’s no room, regardless of how good you are. That’s a math problem on their org chart, not a verdict on you. Everyone in this industry knows what a non-performance layoff looks like right now, and “my firm couldn’t promote me so they set me up well on the way out” is a completely clean story. “I resigned with nothing lined up” actually raises more eyebrows, because the obvious question is what you’re not telling them.
Take. The. Severance. Holy crap lol.
don't even think twice. take the severance package. 100%.
Option 3: refuse to leave
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