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MBB vs. $3bn AUM Mezz Fund
 

FIGurine's picture
 
Points)
 on 6/3/12 at 7:28pm

Hey guys,

Got an offer @ MBB and one at c.$3bn Mezz fund. I have done internships in IB, HF and PE.
Wanted to do consulting to go back to PE/HF after 1-3 years and get the opportunity to see something different from finance in the mean time.

I have only done finance internships and as I am very curious and interested in everything, I thought MBB would be a good way to learn a lot of stuff rather than becoming a modeling whizz building financial models with trillion sensitivities and making numbers match between VDDs and Management presentations all day long (which I really enjoy btw lol).

Then if after two years @ MBB I realize I really prefer excel to powerpoint, I could go back to PE (which I prefered to HF as the work is much more detailed and you get to learn a ton by working with consultants/bankers/lawyers and within an actual team with highly experienced partners telling you what to look at) after having seen something different which I think is always enriching in the long term.

But the mezz fund pays +$200k out of UG (redflag: base is only $45k). This is no joke. As they are less prestigious than the usual suspects they pay very high. HH told me that @ associate level you could get 300-400% bonus + carried (I don't know if I should believe him).

UG from this fund left to other debt funds or very nice PE firms though not KKR BX TPG.
They do mainly mezz + buying senior debt @ discount from banks.
And before all it would be a great opportunity to start directly in the buy-side which I think could give me some sort of advance before my UG class, but I am not sure about this point as many people argue that it is better to get a good brand name and solid training in your first job.

I want to have money when I am 40 but I don't necessarily want it quickly.

I like finance (especially buy side) but if I find something which I prefer during @ BCG (like getting a high responsibility job for an interesting medium sized company) I would clearly consider doing that - ie. I am not blocked on finance.

What are your thoughts guys?

Cheers

West Coast rainmaker's picture

You sound unsure what you

ER
(Neanderthal, 2,128
 
Points)
 on 6/3/12 at 7:53pm

You sound unsure what you want to do.

Mezz is mezz; it doesn't flow into many other industries (credit analysis, maybe?) It is usually the exit opportunity, rather than a launching point.

MBB is basically the equivalent of the "undeclared major" for college grads.

I find mezz fascinating. But you might not. MBB might give you a better idea of what you want to do.

Relinquis's picture

The Mezz fund pay sounds odd.

RE
(Neanderthal, 2,186
 
Points)
 on 6/3/12 at 8:35pm

The Mezz fund pay sounds odd. $45k salary, but $200k total comp is strange. If you do decide to go for this then you should do your due diligence on this aspect.

Mezz pigeon holes you a bit, but you are investing, which is cool. MBB doesn't as much, but it's not investing/finance and you will be a bit of an outsider when it comes to finance (unless you're in a group that works a lot on finance related mandates).

Early in your career your affiliations matter a lot. I don't know what university you have attended, but a couple of years at a MBB firm would give you some worthwhile branding. I'm not talking about prestige for prestige's sake, but as a marketing tool in your career.

If it was non-MBB consulting the Mezz Fund sounds more interesting (assuming you clarify the odd salary/comp).

relinquis... Killing the GMAT this December; Over/Under set at: 725 GMATs.

redninja's picture

The MBB network is strong,

CO
(Gorilla, 606
 
Points)
 on 6/3/12 at 8:52pm

The MBB network is strong, and once you do a stint at MBB you can tap into that network for life - you never really know when or how that'll come in useful. It's definitely much less risky than the mezz fund, especially given the compensation. This early in your career, I think you're better off at MBB.

SlikRick's picture

There is something odd about

CO
 
Points)
 on 6/3/12 at 9:09pm

There is something odd about the pay structure at the Mezz Fund? I'm not saying I don't believe you, its just odd. Is it normal for Mezz Funds to pay a 300% salary bonus in your first year? MBB will pay 100K guaranteed, more than enough money to cover your lifestyle, especially as a consultant road warrior. It really comes down to the lifestyle, assuming the salary situation at the Mezz Fund is legitimate. Are you willing to travel to the point where you can work for United? Or do you have a great social life at home that you don't want to let go? This is a major part of the decision.

OMS's picture

id take mezz and go to

PE
(King Kong, 1,886
 
Points)
 on 6/4/12 at 12:24am

id take mezz and go to bschool/other fund. never look back.

Ricqles's picture

300% is very very

O
(King Kong, 1,271
 
Points)
 on 6/4/12 at 12:49am

300% is very very weird...watch out for their "guaranteed" bonus

PIGS's picture

nothing is ever 'guaranteed'

(Orangutan, 289
 
Points)
 on 6/4/12 at 12:23pm

nothing is ever 'guaranteed' if its not in barack and white.

FIGurine's picture

Thank you guys. I am going to

 
Points)
 on 6/5/12 at 7:08pm

Thank you guys. I am going to do a bit more DD on the mezz fund and see if I take it over MBB.
I think if I can get a mezz fund offer out of college, it should not be too difficult to get a decent buy side offer after 2 years at MBB even if it is not Bain Cap or Apax.

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