I just received an offer from an upper MM PE shop in NYC for a summer 2020 start.
The worst part of the situation is that I was fired from my current bank (with 1 month given for the transition). Given I'm technically still employed at the firm, I didn't volunteer this information while going through recruiting as it would have precluded me from potential opportunities.
I definitely want to take the offer, but would have a 3-4 month gap before the official start date - has anyone run into a similar situation prior to starting their PE gig or have any advice to share??? Really don't wanna blow this and quite scared...
You may want to disclose this information. I'm no pro, but you don't want to end up in a situation where it comes out and people find out you were hiding it from them.
i wouldn't be worried....they are hiring you for what you are right now. They liked you and hired you. You could quit your job right now and go hiking for 3 months for all they care.
You're out of your current job either way so I see you in 1 of 3 boats:
Don't say anything, take a 3 month break, start at PE in summer. Nobody ends up asking or caring how the last 3 months of your life went, you hit the ground running at the PE shop (least likely).
PE shop reaches out to the references, the PE firm looks stupid for not knowing the full story, the references look stupid, they don't deal with your BS and rescind the offer (either next week or in 3 months right before your start date).
3.You reach out preemptively and explain the situation. Say that you were not aware of the downsizing when interviewing and do not want it to come across as something you did in bad faith. Assure them the lay off was not directly due to you or your work and that you'd love to work there, whether it is in the summer or if an accelerated start date can be worked out. This has a few outcomes:
a. They're fine with it and tell you to start in summer 2020
b. They're fine with it and allow you to start early
c. They're not fine with it and rescind the offer right then and there.
In boat 1 you're fine though I'd argue it's the rarest outcome. In boat 2 you're fucked and either out of a job now or in 3 months. In boat 3a you're fine and start at your normal time, chill for a few months or work on something personal. In 3b you're fine and if you want to start early even better. 3c you're fucked but at least you know now. The difference vs. boat 2 is that you have another 3 months to try to get something else lined up. In boat 2 you may continue to live life under the assumption you'll have a job come summer and then have that pulled out from under you, wasting months you could have been looking for something else.
I say tell them now but you can assign your own probabilities and perceived utility from each of these outcomes and figure out for yourself.
I can't believe the enabling of paranoia that persists on this forum, both on the side of the OP and the rest of the commenters.
OP, you got laid off. Look around you. Were the associates that were recently laid off last month at Evercore really damaged goods? What about many of the DB bankers in the past few years? Heck even go back to the layoff rounds 2008... The point is that I've rarely met any senior banker that at one point or another weren't pushed into a difficult employment situation that was completely out of their control. Layoffs happen and I'm more than confident that your new firm will understand this. You freaking out and contemplating the end of the world will be completely unwarranted and unhelpful.
Now for options, don't volunteer any information unless they ask. If they do ask tell the truth and mention that you did get laid off but that you also were going to make the pivot into PE eventually and that you saw being laid off as more of an opportunity to accelerate into your desired career path earlier. SPIN this into a positive.
I'm currently a VP at a PE firm so here's my view: I don't agree with a lot of the stuff here. If OP lies (ie says he quit) or never brings it up, he'll be sweating it not only for the next 3 months but even after he starts. I think there's really only one viable option here that covers his bases and makes him seem honest and trustworthy without giving any pause to the hiring firm.
In the week following the official end date (ie after the 1 month transition), call them up and let them know that "this week there was round of layoffs in my group and I was one of the casualties since they knew I was leaving in the short-term anyway. They clearly conveyed to me it was not performance-related. The good news is I can start earlier at your firm, as early as in one month, or I can start the same time as previously planned, your choice."
I think there's a 95% chance you'll still have the offer in this case. 3 months is too low to care about. The only way it would matter is if they find out you were actually fired, not laid off, and since that's not the case and almost impossible to find out anyway, you're good.
There is a chance they'd ask for another reference from someone at your current (ie just left) firm but I'm assuming you'll pick a great reference who will say your official end date is at the end of the 1 month transition (which is true and you'll be good.
There are many interesting responses here. I have to agree generally with the ones that say or imply "don't say much" though kudos to FinancelsWacc for an incredibly well thought out and thorough response as well as @PteroGonzalez"
I am (as a fellow too honest Samurai) astounded by how much people here say one should be openly honest. I have learned in my multiple lives in this industry that the key is to SHUT UP unless spoken to (in general - I'm a social guy so I find that hard) and to have an answer ready if asked (and prepped and ready to spin).
Being open and honest in a pretty commoditized and brutally competitive industry in which people thrive on getting the slightest edge in any way possible (and filled with plenty of amoral people who will have no problem slitting your throat) is like being Ned Stark. You know what happened to Ned, right?
PE firms lie all the time. Deal negotiating and stuff aside (since I've never sat inside that beast), I've seen plenty of shenanigans as an allocator. The most common and egregious one is called "unrealized" value when pitching the new fund to investors so show some phony IRR to make it look like they are doing great so they can raise money. Funnily enough a number of those valuations come right back down after the final close...Hedge funds make up "competitive edge" and embellish CVs all the time. If these guys were that good there wouldn't be so many funds closing or not under-performing. All of this "embellishment" or let's face it, lying, is (very sadly) accepted fact by everyone involved in our industry.
OP - Who are your references? Are they senior? Are they allies? Are they good people? If they are your references they should at least tick a bunch of those boxes since they are the ones that will stand up for you. If you trust them, it may be well worth telling them as @PteroGonzalez" mentions above to keep the story tight. If you sign something saying you quit and you did, well you officially quit. And hey you are still technically an employee who is getting paid, so as long as you aren't caught around walking in your jammy jams at 2pm on a Tuesday eating a half melted pint of Ben and Jerry's by the PE office who's the wiser?
Taking a break? You can spin it as personal. Spending time with family that you never saw because you were, you know, like banking all the time. Or de-compressing before getting ready to go full on at PE firm, or volunteering or whatever. But volunteer that only if they ask. After all you were in the process when it happened and didn't know. You got the offer and then it happened.
I am not suggesting one be dishonest. But you can have half truths and omissions. Someone who once said "silence is golden" was a genius. Words to live by.
Good Luck
dude, WTF are you talking about? You just got handed an opportunity of a lifetime and you're complaining about it? A 3 month gap, in the springtime??? Jesus H Christ man I'd give my left nut for that! Here's what you do - you buy yourself a ticket to Europe, LatAm or Asia, travel around, and live the adventure of a lifetime!
How many people do you think get paid an ibanker salary, lock down a PE offer, and then get to take 3 months off? Usually people bounce from one grind-you-down job to the next. Go out, get laid, get fit again, and live an amazing life! And come back and tell us all about the adventures.
Holy hell man, can we trade lives?
oh and if you're concerned about reference checks - go talk to your old firm's HR. Tell them you really appreciated the opportunity there, and it's thanks to them you've lined up some great interviews. Do NOT under any circumstances tell them where you're going. Ever. Ask HR what their policy is on reference checks. Remind them subtly that they really aren't supposed to give much info except the dates you were there and your title.
Go back to your senior officers and repeat the process with them. Flatter them, thank them, and ask them to please keep the details re the departure quiet. Tell them you're interviewing at a number of PE shops and may become their client. Our work careers are long, and you want to part ways amicably, and hopefully do business in the future. They'll want you as a potential client, so they should not want to burn you, nor you burn them. Offer to buy them dinner to show there's no hard feelings.
Thanks for sharing this. That's got to hurt dude.
But Seriously?
In my honest opinion, that is a terrible thing to do by the firm. People hide things all the time. This is finance. It's expected. Does your team act honestly in every deal negotiation? Probably not. Even though deals if consummated are like marriages (pun intended). Do they when capital raising? Definitely not? How is this any different?
Frankly, where is the empathy from more senior folks at the PE firm? You crushed the interviews and process for something that was very competitive and they clearly would have plenty of alternatives. Easier to ding the laid off guy during the process to move to the next one (if you admit it).
I'm sorry to hear because frankly I think you were given a raw deal and may have been "Damned if you do. Damned if you don't."
Good Luck