This month we’ll be exploring different hiring trends at investment firms. We’ll take a look at where new hires come from, and how long one stays in a position before being promoted.
Chart 1 looks at where new hires to venture capital (VC) firms came from. We see the following trends:
- Investment banks are the largest source of new hires for investment firms, and have grown consistently since 2022.
- Most sources – such as undergraduates, graduate schools, consulting firms – have grown since 2022. This suggests that investment firms have been diversifying their hiring sources overall.
- The only sources that haven’t grown since 2022 are CVCs and private companies, though it should be noted that private companies remain the third most popular source.
Chart 2 looks at the median number of years one stays in a position before being promoted by total AUM. We see the following trends:
- The total AUM impacts the number of years one stays in a position for Sr. Managing Director / Sr. Partners, Managing Directors / Partners, Director / Principals, and Senior Associates.
- The higher the AUM, the less time it takes to get promoted. This ranges from one year to half a year.
- The total AUM doesn’t impact the amount of time it takes for an associate or analysts to get promoted.
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