Have seen a lot of forums discussing how it is difficult to move upstream from growth equity to UMM / MF PE. What about growth equity to LMM buyout? Despite being in GE, most of my work has been focused on deals (not sourcing).
For those that have tried lateraling from growth equity, how feasible was it to land interviews at LMM buyout firms? For those at LMM buyout firms, how open is / was your firm to interviewing those with growth equity experience? Thanks!
Based on the most helpful WSO content, transitioning from growth equity (GE) to lower middle market (LMM) private equity (PE) is generally more feasible than moving upstream to UMM/MF PE. Here are some key insights:
Deal Experience Over Sourcing: Since your work in GE has been deal-focused rather than sourcing-heavy, this aligns well with the skill set LMM buyout firms typically value. LMM PE firms often prioritize candidates with strong transaction experience, as they tend to have leaner teams where execution skills are critical.
LMM PE Openness to GE Backgrounds: LMM buyout firms are generally open to candidates with growth equity experience, especially if the candidate can demonstrate a solid understanding of buyout mechanics and value creation strategies. Your ability to articulate how your GE experience translates to the buyout model will be key during interviews.
Lateral Market Dynamics: The lateral market for LMM PE roles has been described as relatively active, with opportunities available for candidates willing to move geographies or explore Tier-2 cities where many LMM firms are based. Networking and targeting firms directly, rather than relying solely on big-name headhunters, can improve your chances.
Interview Preparation: Be prepared to address why you're transitioning from GE to LMM PE and how your experience aligns with the firm's investment strategy. Avoid negative comments about your current role or firm, and instead focus on the skills and insights you've gained.
In summary, your deal-focused GE background positions you well for LMM buyout opportunities, provided you can effectively communicate your fit and value-add during the interview process.
Sources: Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, Any career regrets after moving from PE to public markets?, Likely Getting Pushed Out at End of 2 Years (LMM Buyout), https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1
Just curious, why are you thinking about lateraling from growth? Thought that was supposed to be the promised land…
Might be in growth buyout instead of proper growth equity. Big difference in quality of life if you're at somewhere like Lead Edge vs. Summit.
Just curious - what difference are you talking about here?
Yeah curious as well. Thought most people on this forum considered GE as the promised land but those who complained about it complained about density of sourcing. If you’re doing actual deals seems like exactly what everyone looks for
I consider proper growth equity to be closer to A16Z's growth fund, of where you take ~20-30% of a high flying company. There's a lot of funds like Bregal Sagemount who call themselves "growth equity" but are just taking majority stakes in growing businesses. That's just buyout.
Thinking about lateraling soon to my hometown but most of the PE shops are LMM buyout. Trying to figure out if there is a path there or if unlikely since coming from a GE fund
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