COVID Impact on Private Equity Associate 2020 Start Dates (Delays / Cancellations)
Hi All,
Created a burner account for anonymity because I'm going to provide some specific details in this post. I've seen a lot of posts about virtual IB internship announcements and consulting start dates being pushed back due to COVID uncertainty, but I'm curious about the impact that everyone is seeing on the incoming 2020 PE Associate class.
I'm finishing up my IB stint this summer at a BB and transitioning to a MM PE firm in New York. Luckily, my firm seems to be in a good position - incoming associates are on track to start at the beginning of September (albeit virtually). Across the rest of my friends who were supposed to transition this summer, things are all over the board. Here are a few data points that I have for associates heading to other funds:
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Start date delayed until Feb/March 2021
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Start date delayed until October 2020
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No start date given or anticipated "in the near future"
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Start date delayed until Summer 2021
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Normal start date at end of July 2020 (virtual)
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Offer rescinded (most extreme case I've seen...I think the fund was already performing somewhat poorly when this person interviewed)
What else are you all hearing? What advice do you have for this class of associates making the transition during such uncertain times? Like I mentioned, I feel extremely lucky to be tracking for a virtual start in September, but these other cases are quite concerning. It seems like there is a very real risk of a further delay or even an offer cancellation in a worst-case scenario. I recognize that this is the first sort of seismic economic and human crisis that my peers and I are experiencing as "grown-ups" so I don't want to overreact, but I also want to be prudent in my approach moving forward.
Thanks in advance for your help during these strange times. Here's hoping we all find some time for relaxation and the simpler things this Memorial Day Weekend!
That's unreal wow. Someone had their start date pushed to next summer? For the ones that have pushed to an extreme degree (March 2021, Summer 2021), are those usually smaller funds? I know some funds don't want associates working remotely to start but next March / Summer is a bit extreme.
In those instances, I guess it depends what you mean by smaller funds. They're not Blackstone, but I'd say they sit comfortably in the middle market. I think most recent funds closed were in the $1-4bn range.
Agreed that it seems a bit extreme...hence the last couple of sentences in my post. I don't want to get overly worked up for no reason, but at the same time I feel like it's smart to at least think through downside scenarios here. Would be great to get some perspective from people who have worked through the GFC or post-9/11 period.
Those are sizable MM / UMM funds. Wow. In these cases, do you feel that the delay is due to the PE firms struggling or their unwillingness to have associates start remotely? They want everyone to start in the office
You are freaking me out a little bit because I am set to start in August (fund has communicated they plan to keep the same start date) and my analyst stint ends at the end of the month...
Same here I don't know anyone in my class who's had their start dates pushed that far. I've only heard of September latest. Hopefully it's not a troll because my last day is also end of month
Feel free to shoot me a PM if you want to compare notes... misery loves company, or in this case maybe "freaking out" loves company...
I was supposed to start this summer...mine's postponed until November
Please don't troll. It's a serious topic
Fund geography and size?
MM buyout fund in New York. I’d rather not get too specific
For what it is worth, my fund is fine. We are planning virtual starts.
haven't heard of delayed starts from anyone I know
MM fund in SF - start date not pushed back (yet). Still planning for late-July, potential virtual start.
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