How to Hire and Retain Great Associates
As the first in a series of collaborations, I asked Matt Sullivan, Partner at Long Ridge Partners, to share his insights on associate hiring.
Thank you, Matt, for a great conversation!
Can you share a bit about your background and where your perspective comes from to kick things off?
I joined Long Ridge in 2014 and have 10 years of experience recruiting and placing IR professionals with investment firms. I work with many of the top private equity and credit investment firms in the US and have extensive experience placing Associate-level investor relations talent at these organizations.?
Why is hiring associate level professionals so tricky?
In some ways, these searches can be more labor intensive than senior hires.
Professionals at this level require a lot more time on the phone and more management throughout the search process. They can be new to recruiting, and they are less experienced at working with executive recruiters. Really good associates also often have multiple options so recruiting at this level is super competitive. A top candidate might have 2 or 3 offers to choose from.
At the same time, firms are not hiring on a whim at this level. The bar is really high. They’re often looking for someone who can stay for at least several years. Can they be the next VP? Principal? Can they interface with LPs?
What do you look for? What differentiates good from great?
Having a great balance between EQ and IQ is the biggest differentiator.
Other sought-after characteristics:
Most firms require case studies and a writing sample though the specifics vary greatly from firm to firm.
How do you interview for potential, especially with candidates transitioning in from the sell side?
It really comes down to running a great recruiting process. It looks something like this: meeting 10 – 15 candidates for the first round (all of whom should have a great resume), 8 for the second, 4 for the third and then whittling it down to a finalist and a back-up. Running a thorough process is needed to develop a high level of conviction. It’s a labor-intensive exercise for both the hiring firm and the recruiting team.
What is the most ridiculous behavior that you see?
Ghosting is more common at this level. It’s the weirdest thing. Sometimes they ghost the client too, not just the recruiter. It’s really bizarre how there will be just a complete lack of responsiveness. They engage then completely disappear.
Sometimes you see some unbelievable egos, whether they’re talking about compensation expectations or type of role.
I often hear from my team leaders “no one wants to hustle anymore.” Are you willing to opine on this? Do you see a difference among Ivy League vs schools a tier below? Feel free to plead the fifth…..
Occasionally, yes. I’ve received feedback from clients going in both directions. I’ve heard: “we only want to hire from an ivy” as well as “we do not want to see any resumes from ivy league schools.” Or sometimes, if I send a client a resume of someone from a CUNY school with a high GPA and that person got a job at Goldman Sachs, they assume that person is going to be a really hard worker.
How did Covid impact things?
Associates love the capability to work remotely. It’s a bit misplaced because there is so much value in in-person mentorship. Perhaps because so many graduated during Covid and into a remote environment. The class of 2020 and 2021 have experienced some unique challenges and have to work harder to overcome some assumptions being made about the quality of their training.
This all sounds really hard. Why do you do it?
I’ve always been competitive and a bit of a grinder. You need to really like the hustle to be effective in this space. I also really like the coaching and mentorship involved with younger professionals.
I spend a ton of time helping associates understand how a fundraising/IR career can evolve over time, how they can grow within an organization and beyond it.
I also have a great team that I enjoy working with; every search requires 2-3 people working on it.
Lastly, I find the finance industry to be fascinating, always changing and evolving. The dynamic between investment professionals, LPs and client-facing teams is particularly interesting to me.
What advice would you give hiring firms considering partnering with a recruiter?
My best advice would be to source peer organizations for referrals.
As they’re weighing different options, I would encourage them to look at:
A recruiter with 4-7 years of experience in the space is enough to run a robust process and build a strong track record. Balancing years of experience with the ability to relate and become friends with professionals at this level really helps.
What advice would you give associates?
I would encourage them to realize that recruiters can offer a lot of value and to ask good questions. We can share insights around what a career can look like at different types of asset managers, compensation trends, culture, why tenures matter).
领英推荐
Recruiters play a big part in this industry but professionals 1-4 years out of school don’t typically realize this. They view it as transactional vs. an opportunity to build really important long-term connections.
Should candidates send thank you notes after interviews?
When in doubt, send a thank you note. Strong follow-up can be a differentiator and opportunity to establish a long-term connection, so this is often a missed opportunity.
Thank you notes demonstrate that you value the other person’s time and interest in you.?
They don’t need to be overly formal, though sending a more personalized note that references specifics about the conversation is a bonus.? Sometimes HR keeps conversations confined to the interview and doesn’t share email addresses. It’s really more art vs. science.
And don’t ghost recruiters or hiring firms?
Yes, don’t ghost!
Last question. What is your best advice for retaining top performers at this level?
It’s not about compensation; like your senior hires, money is important but it’s not the #1 concern.
Associates want to hear they’re valued more than ever before. They want to hear they’re doing a great job and there is a long-term home and career progression potential with their current firms. I would encourage team leaders to be specific; associates want to see a clear path and a detailed plan.
Relationships with managers also really matter. The impossible recruits are those who say “I have a really great relationship with my boss, and I love working with my team. Even if this opportunity pays me more, I don’t want to leave” or “I am on track to be promoted in two years and just had a great review.” Associates get really motivated and more committed by the promise of promotion.
Have regular check-ins with your associates. Develop the skill of delivering constructive feedback in a way that balances fostering their development with leaving the conversation feeling really good and motivated.
Anything I am not asking that you think people should know?
IR is an amazing career path for many young professionals in finance. If you take investment banking analysts, just as a random example, many of them prefer to consider private equity associate roles, hedge fund analyst roles, corporate strategy at a corporate, or staying in banking. Investor Relations can be more career-oriented than many of those paths. It can also be just as fulfilling and dynamic and lucrative long-term. It’s interesting that not all junior candidates are familiar with that path and need to be educated on it.
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Matt Sullivan, Partner, Long Ridge Partners
Matt began his career at Long Ridge as an Associate in 2014, through grit and determination he worked his way up the ranks and was named a Partner in 2021.
Matt is responsible for the recruitment and placement of investment professionals, including Portfolio Managers, Research Analysts, Risk Managers and Traders along with Marketing, Investor Relations, and Business Strategy professionals. He manages relationships with a prestigious group of hedge fund, private equity, and asset management firms. Strategies and asset classes he covers include Long/Short Equity, Credit, Macro, Real Estate and Private Equity. Matt is active in the training and development of new Recruiters.
Matt graduated with a BA in Economics from the University of Wisconsin, Madison.
In the winters, he can be found skiing the Rockies, in the summer, on the beach (not during the week) or in his hometown of Chicago.
Matt is a member of the Long Ridge Scholarship Fund Committee, which is responsible for providing an annual academic scholarship and internship to a high-achieving college student from a diverse background interested in a career in finance.
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Laurie Thompson, Founder, Willow Hill Advisors
Laurie Thompson founded Willow Hill in September 2019 after spending 16 years in the financial services practice of Heidrick & Struggles. She places fundraising and investor relations professionals with a concentration on senior-level hires.
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Additional AMAs and reports can be found here: https://willowhilladvisors.com/thought-leadership/
From vetting talent, taking on a leadership role, dealing with headhunters, orchestrating a graceful exit, considering a counteroffer, mending professional relationships to hearing LPs dish on best (and worst) practices of marketers, I've got you covered.
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~ Laurie
Great thought piece - as always! I love how informative and concise these are. Although I was surprised to hear that marrying a recruiter wasn’t considered a long term strategy :).
Love these collabs! Nice work Laurie Thompson !!