10 years for an associate to make partner - Is that crazy?

Talked to a VC firm based in out of NYC and they said associates take about 10 years to make partner… that feels like a long time.

What seems like the right timeline for someone who spent 2-3 years in banking and then another in VC to become a partner at a VC?

5 Comments
 

Based on the most helpful WSO content, the timeline for career progression in finance can vary significantly depending on the firm and individual circumstances. Here are some insights:

  1. Private Equity Path:

    • Typically, the path involves 2 years in banking, 2 years in PE, and then possibly 2 years in business school. After this, there are numerous opportunities available, such as hedge funds, angel investing, startups, or even traveling. This path is often seen as a way to accumulate valuable skills and savings before deciding on the next career move.
  2. Venture Capital Path:

    • Transitioning to VC from banking or consulting can be different. For instance, a successful operator at a startup might have a better chance of transitioning to VC after 3-4 years rather than staying in investment banking. VC firms often value practical startup experience over extended banking experience.
  3. Corporate Development:

    • In corporate development, it might take longer to move up the ranks. An analyst might take 3 years to become an associate, and 1-2 years of banking can get you to an associate position right away. However, moving up to senior roles like VP or SVP can depend on the turnover of existing senior staff.
  4. General Timeline:

    • For someone who spent 2-3 years in banking and then another few years in VC, becoming a partner in 10 years might seem long but is not unheard of. The timeline can be influenced by various factors, including firm size, individual performance, and market conditions.

In summary, while 10 years might feel long, it is within the realm of possibility depending on the specific career path and firm dynamics. The right timeline can vary, but gaining diverse experience and networking can significantly impact career progression.

Sources: Q&A - Top Tech / Media Corporate Development Associate, Getting an MBA and coming back to IB, Accounting vs Finance: Part 1 – Career Paths, Quitting major Investment Bank in NYC after 2 months...?, From Private Equity Associate to VP in Private Equity

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

You're asking the wrong question. There isn't a typical timeline to partner, it's not a defined track with milestones. You have to build the leverage and become an indispensable part of the fund's performance to get the GP spot.

How do you do this?

1. Source high quality deals -- At the top it's about seeing every high quality deal possible so the sooner you can show you can do that by building your own high quality pipeline, the better.

2. Become an expert in a growing segment -- Being the go-to person for a specific industry, business model, or region will allow you to build a practice within the firm.

3. Fund-first mentality -- Shut up and stop complaining. Be the person that everyone looks towards that gets shit done and is optimizing for learning. At the higher level it's about politics and if you show that you're a team player that's focus on results with a killer attitude it'll buy you a lot of long-term goodwill.

At a certain point you may have to lateral to get the GP spot but that's part of the game so knowing when your leverage is at its max is a key thing to be aware of.

There are obviously a ton of other factors but it's worth noting that every person I worked with that's an associate that is now a GP has exhibited these key traits that propelled them to a partner in way less than 10 years.

 

How quickly do you expect associates to make GP in VC? The feedback cycles are long. It's impossible to tell whether someone is a good VC for at least 10 years, maybe longer in this environment. If I'm an institutional LP managing pension money, or a university endowment, or a non-profit foundation, why wouldn't I want highly experienced and well trained people to be partners? And what other fields do you see someone progressing from the most junior to the most senior position in less than 10 years?

 

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