Joining Young MM Firms For Longer-Term PE Career
Wondering what people's thoughts are on the >1bn+ MM fund size firms for a career in PE. Wondering if it makes any sense to target these types of new funds if interested in longer-term career in PE since less time for a bloated mid-level to develop. I am thinking like Haveli or 26North or Patient Square or Baypine or CoveHill or Arcline in terms of firms for context.
Understand these are all different funds / strategies, just trying to gague how to evaluate these type of firms.
Higher risk than a MF, but higher upside if it works. These platforms could be the next big thing or could blow up, no one really knows.
Clearlake looked like a great seat if you recruited 4-5 years ago, not as much now with all their struggling portcos. In hindsight, everyone wants the LGP / NMC / GTCR outcome that are high-reward and relatively low-risk bet, but those are rare and hard to predict.
The firms you listed benefit from strong founder pedigree, which LPs like and which explains the fundraising. The open question is how much of the early success is attributable to the founders vs. firm. Harris might get some leeway from LP's given track record at Apollo; others might not be as untouchable if a early funds stumbles.
All the firms you’ve listed are effectively fully staffed at this point
Not sure that’s totally true, 26N was still hiring SAs pretty recently, not familar enough with the rest. But even if we assume they’re “fully staffed,” the value prop of joining a younger platform isn’t about today’s headcount. It’s about what the org looks like in 2–4 years. Two big things: Newer funds are usually less bloated at the mid-levels, so as fund scales there’s naturally going to be demand for senior associates and VPs. The denominator just isn’t as crowded as at legacy shops. If the fund keeps compounding, you’re more likely to see faster responsibility ramp, earlier promotion opportunities, and better shots at meaningful carry + real reps on important deals.
Avoid last three
Why
Only heard good things on Arcline - what’s changed?
I've also only heard good things about Arcline. Curious why looking to avoid?
Who to not avoid in PE outside of just the MF's?
.
Isn't this a bit of grass is greener on the other side? Yes, those who choose correctly which funds will scale end up with the best outcome out of all in PE as pure employees, but for every GTCR there's another AmSec. As someone joining in 2 years and essentially solving for fund 4 years from now assuming a minimum of 2 year associate stint, that is somewhat of a risk to take.
Seats at fast growing firms are still amongst the most appealing in PE due to the second point, but it seems very hard to know who will stall or even decline vs. keep growing. I am just unsure how much it is a better risk-adjusted seat than a top UMM/private MF. I can understand why it's a pretty easy choice to pick these types of firms over a lower UMM or a declining MF; but hard to see why someone would go to a Haveli over a LGP, much easier to see why over Carlyle.
Baypine over Carlyle seems crazy. Baypine 6 portco's; two of them from 2025 and they raised in 2022. Carlyle might not be doing very well; but they are still super reputable and a respected name.
Where do you think the best opportunities are in terms of the funds I listed or even ones I haven't listed where there is a good chance they are the right fund?
Haveli and 26North are pretty clearly rocket ships. You don’t become a billionaire in PE without being elite at the job. Raising $4B+ in this environment is insane when a lot of legacy UMM shops are grinding for years to get to that these days.
That said… both are going to be sweaty as hell. Brian and Josh were the deal guys at already sweaty firms at Vista and Apollo. Incredible brands, and career optimizing seats, but I’d be shocked if either ends up being good for WLB or culture. Would also assume good promotion odds since Vista and Apollo back when they were growing fund size faster was really good at promoting internally. Arcline is also a Golden Gate spin-out, so would assume that is also sweaty. Basically, those 3 are very likely extremely sweaty. Patient Square is simply just not doing as well as the rest and is struggling to raise a fund 2 that is a similar size to fund 1.
If you want the best blend of culture + lifestyle while still having real momentum, BayPine probably sits in the sweet spot. From what I hear, hours are more average than brutal (definetly relative to the other three), and the founder pedigree still gives you a legit shot at outsized outcomes.
bump
Does 26N comp above street given Apollo heritage?
Likely yes, but also you have to deal with a Neurotic Josh Harris. One of the greatest WSO comments that I remember is this story about him from an apollo associate:
"Josh Harris once requested a deal team meeting, in person (for no reason in particular other than he would be in), on Thanksgiving morning with notice going out late the night before".
26N is a very clearly great firm if sole goal is career optimizing for earnings, but working with Harris sounds terrible. Probably still great for 2 year stint and am sure brand will open up a lot more doors than other funds of a similar size. Think 26N is likely to be the largest first-time fund ever since they are already at 4.3bn and still raising.
Placeat aut possimus sed possimus nemo exercitationem occaecati. Vitae et praesentium et omnis reiciendis et. Hic facilis maxime perspiciatis quo in eum adipisci sint.
Eum sit distinctio dolores voluptatem. Ut omnis illum qui aliquam rerum delectus commodi. Dignissimos similique adipisci modi.
Officiis qui voluptatem cum enim. Consequatur molestiae omnis pariatur aliquam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...