Elite MM vs UMM
Considering top mm with great returns and lean investment team (good promotional policies) vs bigger more institutionalized UMM fund (decent returns, overall more filled out team). How should I consider size / branding vs potentially better path to partner?
Don't most 'elite' MM become UMM funds anyways? This is to say middle-market funds that perform well can generate more significant fund sizes down the line and also move upstream.
Assuming great returns and good promotional policies why wouldn't you take the 'elite' mm? Who cares about prestige (and if it's truly a top MM firm the name brand should be on-par with UMM firms).
There are too many variables here to say but in a vacuum hands down 'Elite' MM
What is an example of an elite MM?
Kelso, Luminate, crestview etc among plenty others
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“Elite mm” is the most WSO term I’ve ever heard, is this a joke?
just meant like a well-regarded firm with good returns
Probably better to use a more normal descriptor then, like "top quartile" or "top decile."
This is kind of a weird distinction but I’ll bite - to me an “elite MM” is a firm with a stellar track record that keeps its fund size purposefully small when it could raise much larger funds and chase asset gathering.
Each point of carry in these funds are worth a ton because they consistently deliver 4x+ gross returns across vintages and cycles.
No one consistently delivers 4x MoM returns lol
You sure about that?
I'm at a LMM that consistently generates 3.0x+ MoM and purposely keeps its funds at ~$500MM. Without giving away too much, we're almost on our 10th fund and have purposely kept our funds small given our niche.
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