Associate to VP w/o MBA?
Hi all, I'm at the point in my life where I am trying to figure out if I want to pursue PE long term. I know I don't want to do an MBA, I have no interest in it and tuition plus the opportunity cost is exorbitant. That being said is it realistically feasible to advance past the associate level to a partner track role? At a 2 and out firm would I have any success lateraling and if not what are the odds of an internal promotion without an MBA? Thanks in advance!
Familiar with 2 Principals - one at a name brand UMM and one who was part of a high performing MM firm.
MM Principal left for a unicorn startup. Got a position just under C-suite. Came from a very operations-focused PE firm. Seemed to be a huge exodus from the PE firm at VP/Principal positions recently. Unsure why.
UMM Principal wishes he/she could leave and is still contemplating with alternatives. Their hours are still brutal. I think he/she works in a group that isn't the best performing group. This firm isn't known for the industry they cover.
Neither saw a MBA as being necessary. Both lateraled to other PE firms for promotions.
Did they have to downmarket in both cases or did they lateral to similar/better firms? Also would you say its common to lateral up to a partner track role w/o an MBA?
UMM Principal moved upstream from MM --> UMM.
Other MM Principal whose left PE went from UMM --> MM. He/she was poached by a big shot partner at their original firm to join an upstart fund. Trying to be vague because the story is quite unique and this person may be a WSO user. Let's just say they had a fairly developed operational skillset that would normally be found at much smaller funds in the LMM territory.
Yes
Surprisingly helpful.
Could you elaborate??
Are you in banking? Typically recruiters will say in an intro call, or even email, if a firm is career track (no MBA required to move up), or if they are pretty firmly 2 and out. Would obviously focus on the career track positions.
I think at least 60% of PE jobs I see are either career track, or they say it's a 2 year program but they will promote the strongest performers.
You can lateral but it will likely be going downmarket at senior associate
Assuming your actually grinding for the vp promote (I have heard the vast majority don't), what are the odds you actually get an internal promote at places that say they promote top performers and push the rest to an MBA?
Pretty decent, as long as you're well-liked, top bucket, etc. Make sure the seniors like you and spend extra time grabbing coffee/networking with them early on. Anecdotally I've seen places that promote 2 in a class of 4, and 1 in a class of 3.
There are plenty of firms that promote without MBA, honestly from what I've seen it's more common than not at this point, at least for non-MFs. The caveat is, VP promotions are typically reserved for top performers (i.e. in an associate class of 4, one, maybe 2 max are getting the nod). It isn't like IB where anyone that isn't god-awful can get promoted up to the VP level.
Also, if you join a 2-and-out firm, there should be plenty of lateral opportunities available where you can lateral to a career-track firm, spend ~2 years as a senior associate, then ideally get promoted to VP.
Basically, if you do well in your next role, getting to VP without an MBA is very possible.
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