When is the learning curve maximized?
Hi all, as the title suggests, I'm looking to get thoughts (ideally from private equity veterans) on when in your career you felt like you were fully ramped up the learning curve as a junior.
For context, I'm coming up on my second year in PE and have been the lead associate on 3 buyouts and 4 minority stake transactions. In one of those buy-outs and a couple of the minority transactions I managed most of the due diligence process alone with little supervision from a principal and no support from other associates. Even by buy-out #2 I felt like my learning was a bit muted compared to my first few transactions and by #3 I felt like there was little to no novelty aside from smaller technical aspects of the deal
I'm thinking of leaving private equity altogether to pursue other interests but I feel like I don't want to leave chips on the table in terms of learning from a junior standpoint as I know I will most likely not reach VP at my current firm.
If you were in my shoes, would you stay longer? Or would feel like you were mostly done with learning the ropes and were prepared to move to a new fund at a higher level or switch to a new path altogether?
Based on insights from the Wall Street Oasis discussions, the learning curve in private equity is often considered steep in the initial stages, typically peaking during the first six months to a year. This period is crucial for grasping the fundamentals of deal-making, due diligence, and transactional processes. Your experience of leading buyouts and managing due diligence with minimal supervision suggests you've rapidly ascended this curve.
Many veterans note that while the steep part of the learning curve may plateau after the first few deals, the complexity and learning continue as you take on more responsibility. The transition from learning technical skills to mastering the art of deal-making, negotiation, and portfolio management often marks the next phase of growth.
Given your rapid progression and the feeling of muted learning by your third buyout, it might indicate you've mastered the initial steep learning curve. However, the journey in PE involves continuous learning, especially as you move up the ranks and take on more strategic roles.
Deciding whether to stay or leave for new opportunities depends on your career aspirations and what you value most. If you're seeking new learning opportunities and feel your current role no longer challenges you, exploring roles that offer growth in areas you haven't yet mastered could be beneficial. Conversely, if you're considering leaving due to a perceived plateau in learning, it might be worth discussing with your firm about potential pathways for advancement and new challenges to reinvigorate your learning journey.
Ultimately, the decision to stay or leave should align with your long-term career goals, personal interests, and the type of challenges you seek.
Sources: Overcoming the Learning Curve without being Annoying, Handling Stress / Burnout in Private Equity, Private Equity vs. Venture Capital in 2018, Handling Stress / Burnout in Private Equity, For seniors who have spent your career in private equity, do you regret it?
Why do you not think you’ll reach VP at your current fund?
I dont know for sure but recently shop has gotten top and middle heavy through new hires even tho that’s all slowing down now
After 6 years I still wouldn't say I've mastered all execution so that's quite impressive you managed in <2. keep doing what you're doing. But there's sourcing, tactics/positioning, building industry knowledge, operational chops (go spend time with portcos and insert yourself usefully and in non annoying way into some work streams) etc lot you can do
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