Urgent: Laid off 9 months before PE
Hi guys, need some advice on reaching out or not to my future PE firm. I received an offer 2 months ago for next August. My bank has been doing layoffs and has laid off everyone except one MD from my group in the office. I was told it wasn’t performance based but they were downsizing the group and telling my MD to use nyc juniors regardless of him asking to keep me. Do I disclose this to my PE firm, find an interim job and then disclose, or wait until it’s 2-3 months away to disclose? I’m worried the start date is so far away and it gives them more time to just rescind. I don’t think I was their ideal candidate given more product group experience.
Check if there's anything in your contract but they're most probably going to pull your offer, unless it's a more friendly (i.e. LMM or MM) shop
Cold world.
You should tell them. You'll put your offer at more risk if you don't disclose until later. They may be able to help introduce you to IB contacts for a replacement gig before starting or at least opine on expectation for how you should be spending your time until starting.
First, hit the lateral market ASAP, and see how traction goes for the next 2 months / first part of new year. If you're not getting any traction, try for something else somewhat finance-related. You will have to disclose it eventually and if you are not in a banking seat or similar then yeah your offer is likely toast - from their perspective you're basically losing out on a year of training that they were banking on. The good thing is that most funds don't really give a fuck about their incoming Associate class until like a month before they start, so you probably do have some time to sort your shit out. If you successfully lateral into a similar seat, you're probably fine.
OP - PM me.
Fortunately this is not unique given the volatility the last few years starting with Covid and then with all the layoffs since 2022. Best advice is to tell your firm and explain how it affected your entire group as you say. All the partners have been around enough to know that layoffs are a symptom of the times and they should be sympathetic about it (maybe one of them was laid off before in a prior life). If they aren't, then it's not the shop for you and they probably aren't good people to work for if they view setbacks like this (which are out of your control as a 24 year old) as a reason to not hire you.
Offer to have a senior person at your bank that you had a good relationship with to vouch on your behalf that you weren't the only one affected and you were essentially stuck between a rock and a hard place (they'll likely take that offer as a sign that you were truly fucked so won't want to dig further). And then offer to come work for them immediately and that you are extremely enthusiastic about the opportunity for XYZ reasons. August is 10 months away so its not too far but they could find room for you to start in the Spring maybe. Always lean to the positive and don't be bitter when explaining what happened. The PE firm will want to keep the relationship with the bank so doesn't need any acerbic analysts. Keep it professional, keep it positive. And approach the contact at the firm you have the best relationship with. If they can't take you on until August, but are keeping the offer, then say you'll find another job immediately to keep your skills sharp.
This happened to me and a handful of people i know over the last few years, in very similar circumstances. Keep your head up, how you handle this period of uncertainty will be crucial to how you handle other stressful situations. The good times will come back again.
The same thing happened to me years ago - was seven months out from my start date. I told my PE firm right away, but really focused the conversation on whether I could start with them right away.
The end result was there was no immediate placement so they jokingly said "throw on a backpack, see the world and we'll see you in seven months"...two months later, they called asking if I could start right away.
As others above have said, you are not alone in the least. This shit as nothing to reflect on you, as you well know. The MOST important thing to do right now, as in A-S-A-fuckin-P, is to disclose and start a conversation with the new firm. Do not listen to any clowns who have no idea how hiring works and quietly try to find a job first before discussing. Terrible, terrible advice. Find the best contact you can at the PE shop and tell them what happened, offer a reference who can vouch for the situation, then ask if there is a good fit or need at the fund to have you start as soon as you can. You could say something like, I’ll work wherever the fund needs more help on for the time being, if you want to go that route. If your offer is toast because of this, then breathe a sigh of relief and look for another gig altogether. Toxic firms tha T penalize 24-year-olds for down market layoffs will never get better in the time that you’re there.
At my previous firm, we had a situation like this and decided to bring the person in as analyst (instead of as an associate 1.5 yrs later)
Seen this happen at Apax and TB
If the fund itself doesn’t have a role, you can also ask if there’s a PortCo that you can work at in the meantime to get some industry / Ops reps.
You can if you want I don’t see how a layoff uncorrelated to performance puts them in the position to take away your offer lol
Because the candidate was hired 1-2 years ahead of starting in PE on the premise that they will complete their IB program with the bank on their resume. If those facts change (move to new bank, move to a non-IB job and don't get the prerequisite pre-PE banking experience), then offers can get pulled.
OP should hustle to find another IB job at a comparably prestigious bank/group ASAP.
Can you guys chill with the MS? I volunteer my time around here to be helpful. I lead recruiting at my firm, and I’m just stating market facts. I’ve never actually rescinded an offer (and yes, I’ve had associates with the above situation), but I know other firms that have.
Seen this happen twice to 1st year analysts. Both times they immediately disclosed to the PE firm, 1 joined the PE firm immediately as an “analyst” and the other lateraled to a more boutique IB shop before finishing their 2 years. Agree w the advice above to disclose immediately.
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