What percent of MF associates make VP
How much is burnout/different focus and how much is churn?
if it’s so hard to make VP, why go from IB?
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15-20%
so where do all those ppl go? And how much if that churn is people choosing not to continue?
smaller funds, hf, corporate, mba
Agree - I work at a bank that's closer to bottom of top 10 vs top and so not a ton of MF exits....but still have not seen an analyst yet that used to work for me make VP at the same firm they exited. A shockingly low number of prospective PE associate understand the odds they face but most people are programmed to believe they're likely to be a top performer.
Hence why I actively encourage analysts to pursue what they find genuine interest in, not chase a seat for “prestige”. When you care about the work you do, it makes it monumentally easier to find yourself in that 15%-20% because it will show in your product. This only becomes more true the more senior you get. Partners across each group at a reputable shop will likely be pulling down very similar comp, so find what you love and do it well. That’s the key, not “optimizing” for anything else.
What % of associates make VP among those that want to?
That is the real question. At my firm, pretty much anyone that wants it makes it. It is just that a strong majority don't want to stay in finance for more than 4 years as they value both their waist and hairline. I, for one, am also pretty fond of my hair...
Out of the 9 people in my analyst class that went into PE 3 remain at SVP level. Out of the other 6, 1 turned down a VP promote and another 2 took the hedge fund route off their own accord and are still into. So I'd say 3/5-6 who wanted to stay in PE, stayed
Out of 9 people in my associate class in PE, 2 are at the principal level at the same firm. 5 are VPs/Principals at other firms (would characterize each of them as peer firms), 1 is at an equivalent seat at a hedge fund, and 1 split off to do something entrepreneurial (fundless sponsor). Of the 7 that went elsewhere, 2 had the option to stay on post-associate.
How do you differentiate yourself among a pool of talented and hardworking MF Assos? Any tips / thoughts / advice? Is it all politics after a certain point?
take initiatives to show that you can succeed in VP seats, and most importantly, be liked by the partners
It also depends on the market as you come up on the 2 year mark.
Was in a MF Associate class of 12-14 (intentionally ambiguous). There are 2 of us left that made it to Senior Associate. At least 8 wanted to stay, and most people were solid. Rough. Conversion was better in ‘17-‘21.
What did the others do
A few to b-school. 2-3 to corp dev, a 4-5 to other funds, 2-3 unemployed/traveling + burnt out/searching for lateral opps
Do you remember how long the people were unemployed? Is that boat and soul searching lol
Would/could they go back into banking if they wanted to?
Sure they could. Most people don’t want to go back to banking because they don’t view the money to be worth it
They wouldn’t admit it, but I’m sure some have asked themselves the question re if they made the wrong call to leave banking. There’s a bit of a stigma about the idea of going back to/staying in banking among PE people, and I think some ppl convince themselves they’d never want to go back.
But at the same time, it’s pretty crushing for ppl to have done top group at BB/EB —> MF Aso role —> struggling to find a job after months or to have had to go to a much smaller fund with a different mandate than they hoped and a comp hit (true for some of the ppl that lateraled). Honestly pretty hard/sad to watch some of the ppl that wanted to stay but weren’t able to stay from my class. Some of the most talented, confident, and hardworking ppl I’ve ever met…lost and demoralized after 4 years of cranking, and in many cases, having sacrificed elements of their physical health and relationships.
Some definitely wondering what they could/should have done differently w/ their path (for some, including whether they should’ve left banking). But will work out in the end, and I’m sure they’ll land at good spots. Past couple years have just been tougher for conversion, and there’s so much that’s just good/bad luck
If they were that good, why were they booted out? What was the differentiating factor between them and those that got to stay?
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