Take MM offer or go for UMM/MF?
Hi guys,
Recently got a (L)MM PE offer but a bit hesitant to accept – keen to get an external opinion on what you’d do in my situation. Some details are a bit vague for anonymity
Background:
- European, went to a decent regional target (think Bocconi, SSE, WHU)
- Currently at MBB (BCG/Bain) London office (bit more than year), top-quartile performance, focus on PE
- Previous internship experience at a London EB and LMM PE
Offer:
- Firm: Regional MM fund (think DACH / Iberia) with ~$4bn AUM; next fund ~$2-3bn; no strong sector focus. Strong historical performance (30%+ IRR for 10 years), esp. in last 2 funds; consistent performance (vs. few home run investments)
- Comp: base + bonus below UMM/MF but relatively competitive. Includes material equity at associate level and a clear trajectory for greater equity share with promotions
My thoughts:
Pros for the move:
- Safe (since I already have the offer)
- Long-term preference for working at a MM firm (clearer path to partnership, better lifestyle, personally find work more meaningful)
- Fund looking to expand into a geography where I'd be a natural core member (others don't speak the language; e.g. think DACH firm starting to invest into Netherlands)
- Overall good impression of the people / culture based on interviews and talking with colleagues who have worked with the firm
Cons:
- Miss out on the large fund experience and brand name; more difficult to move up-market than downmarket
- Move out of London (would like to stay few more years, however not for the long-term)
- Lower initial cash comp than at UMM/MF
- Don't get to explore opportunities / other funds very thoroughly (literally first PE interview for FT position)
In general much of the cons are contingent on me being able to land a UMM/MF spot in the first place. I do feel relatively confident I'd be able to find a spot at one of the slightly larger firms (e.g. AUM of 10bn+ at least) but given the inherent uncertainty in the process and potential drought in the market in case of a downturn there is naturally 0% guarantee.
Keen to hear your thoughts!
Your fellow monkey
ChemicalMonkey, have you checked out these or run a search:
I hope those threads give you a bit more insight.
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