CD&R vs. Berkshire
Have a friend choosing between CD&R and Berkshire - thoughts? Would be open to living in Boston - more concerned with overall experience, branding, etc.
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If open to Boston, I would go for Berkshire. CD&R is pretty legit though and in an odd sense almost underrated. Such smart investors (and IMO probably better ones than Berkshire). That said, Berkshire wins culturally. CD&R has more of an old school feel / seems much more formal. I personally prefer NYC to Boston by a wide margin but Berkshire is a pretty compelling opportunity. That's quite a feat having the opportunity to choose between those two.
Size: CD&R (by far)
Complexity and Diversity of Deals: CD&R (by far)
Performance: CD&R (by far)
Exposure to Corporate BSD: CD&R (by far)
Brand (due to points above): CD&R
Pay: CD&R (although on associate level probably doesn't move the needle)
B-School Placement: Both great
Culture: Team-dependent but probably Berkshire
Promotion post B-School: Possible at both but probably Berkshire
City: Personal Preference
You nailed it honestly. CD&R by and far is the better option if you're evaluating this choice superficially. Neither is a poor choice but if the OP's "friend" is trying to decide, then they should probably lean towards CD&R. Also Boston is shit compared to NYC and I am perfectly aware of people who might want to come at me for this but just thought I'd put it out there. Either way CD&R is a better choice in an option basket with two fantastic choices :)
You'll be happier in Berkshire
One thing I have learnt is that you need to optimize for a combo of culture and brand. I think berkshire is strong enough in which you do not have to worry about brand - pick berkshire.
One thing I have learnt is that you need to optimize for a combo of culture and brand. I think berkshire is strong enough in which you do not have to worry about brand - pick berkshire.
Definitely comes down to personal preference. They're both great funds, so it's really a question of comp/prestige to culture. Berkshire wins on the culture front (you'll still work hard, but a lot of nice people) and CD&R wins on the comp/prestige front. For me it would probably come down to city preference, but if either increased friendliness or better comp are a top priority then they should make the decision based off of that.
Associate comp at Berkshire is higher
This is false.
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Ignore my title - I’ve encountered CD&R on many processes and they’re extremely respectful people. I’m sure Berkshire is too but just can’t speak to them.
Does anyone know what all-in ASO1 comp is at each?
Close to ~$300 set in stone at Berkshire with higher base but 80% of base bonus. CD&R north of $350.
Damn CD&R pays over 350k? That’s more than the big MFs KKR / BX / Carlyle no?
Berkshire close to $350k as well. They are higher base / lower bonus but believe base is around ~200k (which for the record is way better than a low base / high bonus)
Idk about Berkshire but one of my best friends works at CDR and said they pulled over $400k for ASO1. Not sure if accurate or not but no reason not to believe him.
I also chose between these two. Happy to speak to that decision offline.
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The question was literally about overall experience, not size and performance lol. At this level of fund (both great) returns and size matter a lot less if it's not a partner-track role.
This is spot on
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Have several friends and former co-workers from my banking days at CD&R, and from what I've heard I can definitely vouch for CD&R's associate experience. CD&R's culture is buttoned-up, but not in a bad way, and the people are generally very nice and genuine. Associates get quite a bit of operational experience if you're into that, and the operational seniors are from what I've heard great people to learn from. B-school placement is great as well.
Have heard literally the exact opposite. Good financial chops will be learned but it's a pretty grindy place. The operational bit is a bit overblown from the early Jack Welch days; with their army of operational advisors (who provide great war stories) digging in, the actual ASO work is the usual granular datapacking to support those operational projects but very little in the way of actual operational responsibility or independent liaising. Buttoned-up culture isn't "mean" per se, but it's kind of a "cold nice" place. They'll ask you how your weekend was, but you're kind of a resource first and human being second. The juniors I know there are about as miserable as at the MFs I know, with pay in line with MFs but b-school placement a touch below. Some teams are killers, some teams are more humane, but it's not exactly a touchy-feely place in any group.
Berkshire is pretty clearly a peg below on the "objective" fund performance and size categories, but they're big enough that they can compete on big deals. Culture and b-school is a step function above CDR
Pay is above most MFs, with 1st years clearing $400k this year. BSchool placement is on par if not better than other MFs, with currently 8 associates at HBS.
Any insight on internal promotion opportunities at CD&R?
Newish program, requires 3 ASO years
With mandatory / de facto B-School?
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On balance, yes. But maybe splurge on upgrading the quality of your therapist services to compensate for the culture differences.
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