Exit from IB to PE - London

Based on the most helpful WSO content, transitioning from IB to PE in London is a well-trodden path, and your concerns about competition at mega-funds (MFs) and the potential for better opportunities at UMM/MM funds or growth equity firms are valid. Here's what you need to know:

1. UMM/MM Funds in London:

   • UMM (Upper Middle Market) and MM (Middle Market) funds often provide a more balanced lifestyle compared to MFs, with potentially better upward mobility and a focus on financial engineering and operational improvements.
   • While specific fund performance data is limited, some of the best-performing MM/UMM funds in Europe are known for their strong London presence. These funds often focus on sectors like industrials, healthcare, and technology, which could align with your background in industrials coverage.

2. Growth Equity in London:

   • Growth equity firms operate at an earlier stage than traditional LBO-focused PE firms, making them a great fit if you're interested in working with companies that are scaling but not at the startup level.
   • The growth equity landscape in London is growing, with both top-tier and smaller shops establishing a presence. These firms often value skills in financial modeling, valuation, and understanding of growth-stage businesses.

3. Compensation and Upward Mobility:

   • While MFs may offer higher initial compensation, UMM/MM funds and growth equity firms can provide competitive pay packages, especially when factoring in carried interest and long-term growth potential.
   • Upward mobility is often better at smaller or growing firms, as they may have less rigid hierarchies compared to MFs.

4. Key Considerations:

   • Recruiters: Leverage headhunters who specialize in PE placements in London. They can provide insights into which funds are actively hiring and align with your goals.
   • Sector Focus: While you're open to all sectors, highlighting your expertise in industrials could give you an edge, especially with funds that have a strong focus on this area.
   • Networking: Continue building relationships with professionals in the PE space, as referrals and connections can significantly improve your chances.

If you're looking for specific names of funds, consider exploring discussions on WSO forums or reaching out to recruiters for tailored advice. Good luck with your transition!

Sources: Breakdown of Post-IB Exit Opportunities, Best-performing MM / UMM funds in Europe, Breakdown of Post-IB Exit Opportunities, Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?