Private Equity Turnover
December 4th, 2009Getting into private equity is one of the tougher fields for younger folks to enter and once in, it’s also a field where few like to leave (at least voluntarily). With low turnover amongst the upper ranks at firms combined with little need for additional VPs and other senior deal people despite new funds being raised, turnover amongst the entry level crowd is inevitable. But how bad/much is it. Looking at how the lower ranks of two well-known groups have changed over the last several years, TA Associates and Silver Lake Partners, provides a little insight.
First up, $12 billion Boston-based TA Associates. From June 2007, a screenshot of TA’s website shows 23 Associates, split between offices in Boston, Menlo Park, and London. Today, TA lists 29 Associates split amongst the same locations, as well as a new office in Mumbai. Of the 23 listed Associates in 2007, only 4 (surprisingly) remain with TA today (2 in Boston and 2 in Menlo Park). Just one, Hythem El-Nazer, has received a promotion and is now a Sr. VP.
TA Associates June 2007
TA Associates Today
Next up, $13 billion SF-based Silver Lake Partners. Looking at a screenshot from June 2007, 17 Associates/Analysts are listed. Today, Silver Lake has 25 Associates/Analysts (all new). Of the original 17 in 2007, just three, Jason Young, Jason White, and Jonahthan Durham remain with firm today.
Silver Lake June 2007
Silver Lake Today
More analysis would certainly be needed to see how common the pattern above is amongst other big-name private equity firms, and you can draw your own conclusions on what explains the low level shuffle. Whether TA and SilverLake tend to hire impatient opportunists or the more likely scenario that both firms having exceedingly high expectations for young staffers. Either way, one thing is clear, if you get in on the ground floor, keep your resume handy as the the chances you’ll still be with TA or Silver Lake after several years, appears unlikely.
Tags: Silver Lake Partners Private Equity, TA Associates Private Equity
December 4th, 2009 at 11:51 pm
[...] Private Equity Turnover [...]
December 7th, 2009 at 12:20 pm
Most funds that have a pre-MBA associate type position usually offer two year employment, with the expectation that the associate will leave after the two years and go to business school. I don’t understand why it is surprising that the associates aren’t there two years later. They are probably all at HBS, Stanford and Wharton, per their hopes and dreams prior to accepting a position at the fund.
December 7th, 2009 at 12:56 pm
Are your business generalists writing the PE column again?? The turnover in pre-mba associate ranks at PE firms rivals (if not exceeds) that of cashiers at McDonalds. Much of the turnover is intentional. What you need to do is find the ones that left for other jobs, especially at competing PE firms. They likely got bumped to VP or senior associate and it will be interesting to understand the circumstances why the former and new employer differed on the candidate’s value.
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