Blah experience at MF, heading to B-school. Recruiting tips?
Finishing up a WFH stint at a BX/KKR/TPG-level MF that doesn't give out explicit return offers (you have to "ask to come back"). Had a blah experience, bunch of frisky deals but didn't close a deal and my references are going to be pretty solid but not gushing (I was a solid resource, not the kind of place where associates wow people beyond just being a workhorse). Not diverse. Place had shitty culture (consensus here is correct that it was pretty sweaty).
Headed to H/S this fall but getting really spooked by the accounts here of the normal course for ex-PE people not being able to maintain fund "level". I'm not a prestige whore but I can do carry math, and I do believe MFs can play in certain deal sizes that MMs can't / are just generally a safer harbor when shit goes sideways. I assume that doing an MBA internship is going to be both a no-no for feasibility (not diverse) and signaling (seems "desperate", why wouldn't I wait to recruit FT, etc.) reasons. So, asking the community--am I totally SOL on going back to an MF level shop (and thus I should focus on MM), or are there steps you vets would recommend that would give me a fighting chance?
I mean if you can do carry math, I'd recommend looking at startup PE shops with legit founders.
Unless you are going to one of the privately held MFs your ceiling for carry (in total dollars) is likely higher at a smaller shop. Especially since you can still 3x funds in the MM and that's much harder at bigger shops.
I mean do you only want a fund with latest raise 10-15+? In which case yea who knows what happens.
Are you ok with 3-4bn+? I.e. would Berkshire, aea, other top tier funds not suffice? If not I would say you’re probably sol. But you should really think about why they wouldn’t suffice. Bc they pay a lot of money, have long histories and great returns. The choice isn’t a 750mm fund vs Blackstone. The space is broad
Hi guys, I'm at the top of the food chain in terms of fund and school, is my career fucked? Thanks
Congratulations on the H/S start and wrapping up 2 years! At a MF post-MBA now so some color on a few points:
1) I'd say if you weren't sponsored and aren't diverse, the odds are ~50% or less that you go to a similar-level fund--don't underestimate the talent you're competing with from UMM associates who have great deal experience. Your best shot is probably to ask to come back if that is your priority.
I'd also say there is a trap that a few MF people get into where they are extremely picky about where they get offers and end up much lower on the totem pole. Something to take into consideration.
2) Shouldn't feel bad about gunning for select summer PE positions if you are worried. Not all of the programs are diversity-only; if anything the MF programs are more diversity-oriented and below that, firms are trying to test out candidates and get a jump on recruiting. There is definitely a bit of "swallowing your pride" but can work. And second year is much better once recruiting is out of the way.
3) Everyone here is correct on the carry math potentially being worse at a MF than at a solid up-and-coming shop. In 20 years the richest people from your business school class will not be those who stuck with MFs but those who joined near the ground floor at good funds who afterwards expoded. There is just much less variance at the MF level on both the upside and downside. You can't benefit as much from fund growth. fund success or accelerated promotion in a large shop. Moreover your individual contribution will never be needle-moving. If you're a "bet on yourself" type of guy a MF may not be for you.