Why Do VPs Exist
Typical PE workflow from multiple shops I've worked at:
Partner: requests some form of material (IC deck, model, data cuts, etc.)
VP: Attempts to predict what the partner wants to see and creates an outline for the associate
Associate: Does the tasks assigned by VP, sends material to Partner and VP
Partner: marks it up, wants to see things VP did not anticipate and deletes things VP thought were valuable but aren't to IC
Associate: Does the whole deliverable over again
Why do we do this? Is this not a complete waste of time for everyone involved?
Institutional bloat is a bitch ain't it
YMMV because VPs at my fund (at least in my group) consistently work more than the associates. I typically run IC/DD deck outlines by an MD before getting into them because you waste so much time if you don’t align on that kind of stuff upfront. VPs check work (often littered with mistakes) and at my fund, we are often getting into Excel/PPT and doing a fair part of the actual analysis ourselves. We had to go to IC the other day and my MD gave 5 final text type comments and my associate missed 3 of them before ducking out of the office at 4 PM.
Good VPs do a mix of things – knowing all the details about their portcos, giving clear instructions to juniors on what analyses to perform, maintaining strong relationships (execs, bankers, third parties), keeping MDs apprised of any issues with deals as they come up, executing deals / giving leverage to MDs. Personally I thought the associate job was way harder than the VP job until I actually entered the VP seat myself. You might not have the best manager but it’s a tougher job than you might think.
VPs at my firm are certainly consistently more busy than associates. They help prepare agendas, lead meetings, check work, help on admin 3rd party DD workstreams and source and there are far fewer VPs at my firm than associates so they have to do this across multiple live deals at the same time. Associate work definitely spikes harder but in between large deliverables it's not nearly as bad consistently.
The checking numbers part and, as dumb as it sounds, just being there to bounce ideas off of is so helpful. I have been working directly with an MD / Director for a year now and it is hell on earth. They are not reachable, dont dive into details and you can not expect guidance from them.
Because MDs don't want to work directly with a dipshit first year associate
So true lmao
VPs need to be able to sit in front of counterparties and manage and/or lead them. Associates can eventually do most of the #s stuff - but many cannot be 'front facing' (yet)
Because they ultimately allow MDs and Partners to be more efficient with their time (albeit it being more inefficient for the associate). If you compare the amount of $$s being paid to an MD / Partner vs. an associate, whose time do you think is more valuable?
There are good VPs and bad basically. The good ones work more than almost any aso ime. The bad ones do nothing and add no value. There’s sometimes no direct relationship between good/bad and promotion past VP.
Ime, at the very desirable shops you mainly have good VPs, and there is more of a mix as you go to shops that are less competitive. Just my experience and primary source info.
You work in PE but think that the job is only about producing IC materials?
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