Career Dilemma...to PE or not to PE

Based on the most helpful WSO content, here’s how you might approach your dilemma:

1. Joining the LMM Fund:

   • Pros: The allure of better culture, work-life balance (WLB), and upward mobility is significant, especially if these factors are lacking in your current role. If the interviews suggest a strong fit and the fund's trajectory seems promising, this could be a great opportunity to grow with the firm.
   • Cons: The pay cut and the risk associated with a second-time fund are valid concerns. If the fund doesn't perform well or fails to raise subsequent funds, your career trajectory could be impacted. Additionally, transitioning from a top UMM/MF fund to a smaller LMM fund might limit your options for returning to larger funds in the future.

2. Attending Booth:

   • Pros: Booth is highly regarded, especially for finance and private equity. It offers a chance to reset, explore new opportunities, and expand your network. The half scholarship reduces the financial burden, and Booth's strong career services and alumni network could help you place at Chicago-based funds post-MBA.
   • Cons: While Booth has a strong PE network, it is less robust compared to HBS or Wharton for mega-fund placements. However, for Chicago-based funds, Booth's network is solid, and many alumni are willing to help. Keep in mind that post-MBA PE recruiting is highly competitive, and your pre-MBA experience will play a significant role in your placement.

Key Considerations:

• Risk Tolerance: If you're comfortable with the potential risks of the LMM fund (e.g., fund performance, career trajectory), it could be a good move. However, if you value stability and want to explore broader options, Booth might be the better choice.
• Long-Term Goals: If your ultimate goal is to stay in PE, Booth could provide a platform to pivot to other funds or even explore adjacent opportunities like search funds or entrepreneurship. On the other hand, the LMM fund could offer a more direct path to senior roles in a smaller, more entrepreneurial setting.
• Chicago Placement Post-Booth: Booth has a strong reputation in Chicago, and many alumni are in leadership roles at local funds. While placement at top-tier funds is competitive, your UMM/MF background will be a significant asset.

Ultimately, the decision hinges on your risk appetite, career aspirations, and how much value you place on the Booth experience versus the immediate opportunity at the LMM fund. Both paths have merit, but aligning the choice with your long-term goals is crucial.

Sources: Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, https://www.wallstreetoasis.com/forum/private-equity/wharton-vs-stanford-gsb-for-private-equity-recruiting?customgpt=1, LMM PE or MBA better for Search Fund / Entrepreneurship?, LMM is underrated, MIT Sloan and Columbia >>>>> Booth and Kellog