Scaled SM or MM FT

I interned at a decently scaled SM (~$5B in assets) based in Chicago my sophomore spring. I loved the people and the fund strategy, and it’s the type that would be easily convertible to a MM. Great economics too, less than 15 people.

Last summer, I interned at one of the top MMs programs (CAP/P72) and received the return offer. I accepted and am soon to start (~2 months away due to me asking to delay my start for a specific reason).

I recently heard back from the sophomore fund, and they offered me a full-time position. I’m thrilled as this was somewhere I had always hoped of landing eventually, I’m stuck now considering whether 1) they’ll have the resources to train me / will I have enough time before having to ramp on names?, and 2) if it is worth moving to Chicago in my 20s as I’m not a massive fan of the city, and all my friends and family are in NY.

All help / input is appreciate, thanks.

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There are multiple threads on here debating the merits and cons of SM vs MMHFs, so I'm not going to comment on that. And without us knowing much about the SM, it's going to be hard to give you proper guidance as well.

At 5bn the fund is at a scale that it won't go away anytime soon... those can offer similar progression/exposure to MMs although the investment styles and models will differ. So 1st thing you need to do is decide which model fits you better and is aligned more with your LT goals. 2nd thing you need to do is ask the SM what sort of training program will they provide / what does ramp up look like. They likely know you will need significantly more time to ramp up vs. someone with IB/years of buyside exp, so that'll likely be baked into their decision to offer you an FT role. We don't know if you're expected to be a model monkey or expected to contribute to ideas from day 1. It's very unlikely to be the latter at either the SM or MM, either the former or somewhere in the middle.

So 1) create a priority list with your needs/focus - location, investment style preferences and alignment with LT goals, team preferences, etc. that'll solve 75% of your problem, 2) reach out and ask about the training plan.. I think it's fair game at this point given you have another option. Good luck.

 

Brother, I would take that SM seat and never look back. IMO it's not even close (unless you dislike CHI that much/really want to be close to family which IMO isn't that big a deal at the start of your career). The MMs will always be hiring and the transition from there to SM is harder vs from SM to MM is pretty straightforward. You will always have the option to go to the MM after you've gotten a few years of experience and you'll be able to hit the desk as a killer instead of being fresh meat that's learning the ropes. 

Especially if you loved the people/culture and the strategy is compelling to you - that's what we all dream of (sans 7 figure comp). MMs will heavily vary by PM and odds are you'll most likely be on a smaller team (not inherently a negative, but if this is a $5b+ SM you'll just get to do SO much more considering most pods are not that large unless you count leverage) and have less mentorship opportunities compared at the SM. 

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