How hard is post mba MFPE
How hard is it to get a post pe position at a mf after MBA? I know they supposedly don’t give carry, so would it be more lucrative to take a position without carry at a MF or with carry at a growing mm?
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Depends mostly on your experience pre-MBA. Without experience in PE (or some sort of investing role) it is going to be very, very hard.
Carry question is hard to answer (somebody did a good job explaining it in that LMMPE fund thread that was floating around earlier), because it depends a lot on fund performance and economics (how early are you getting carry? how much?).
What if you do have pre mba pe experience?
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It’s very difficult, even for those with pre Mba experience at a MF
This is correct. There are fewer post-MBA spots than pre-MBA spots at MFs and somewhere around half of spots are accounted for by returning sponsored pre-MBA associates. I would love to see stats on the number of truly “open” post-MBA seats across all MFs in a given year.
Rule of thumb was that for every 4 pre-mbas, you had one new post-mba. So if you are in a class of 20, they'll take 5 new post-mbas a year across across all sectors.
The way we thought about it is that 3/5 would come from the top 3 associates in the class (for sector divided funds, being the best wouldn't matter if you are too VP-heavy in your sector so there's a luck/timing issue), 1 would be diversity and 1 would be from outside the fund.
So do the math and you need to be in the top 10-20% of your associate class adjusted for timing/group considerations. You might have a team that brought in a lateral VP, so no one's getting hired for that sector while another had multiple people leave, so there's a glut of hiring.
Hard if you are already at a MF, and very hard if you weren't. There aren't a ton of seats available, and you are competing with all the ex-MF people who didn't get return offers at their shop.
Much more common is to see folks move down market - MF to UMM or UMM to LMM. As others have mentioned, any post MBA PE recruiting has gotten incredibly competitive.
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