Thelander IF Digest: February 2024
What Hiring Trends are We Seeing at Investment Firms?
Welcome back to the February edition of our Thelander Digest. 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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