Lower MM PE vs Co-Investment PE
I'm currently a 2nd year at a top consulting firm, and while recruiting hasn't worked out exactly as I had hoped, I've fortunately come out with two offers: one at a lower MM fund (~$500M AUM) and one at a co-investment fund (~$3B AUM).
I was hoping to get some advice on which offer to to take. My goal would likely be to go to b-school and work in MM PE or a HF post-MBA. Honestly, I am kinda leaning towards the co-investment fund due to cultural fit / people but am concerned that I may not be able to make the transition to direct MM PE (either pre or post MBA). Some other comparisons between the offers:
Comp / people / exit opps are all more or less the same
Comp: Both are a slight haircut from what seems to be standard MM pay. Not surprising, given the the low AUM at the MM and that the co-investment fund fee structure is different. Pretty satisfied here though
People: I think the partners at the co-investment shop are actually a bit more impressive. All the partners come from very reputable direct PE shops and are more "pedigreed". No big differences at the Associate level
Exit opps: Seems like most Associates go to b-school afterwards after their 2 years. Mix between HSW and other M7 schools at both shops
Work: The lower MM PE has an industry focus (that I am interested in), whereas the co-investment shop is a generalist. There would be more portfolio work at the lower MM PE shop and almost none at the co-investment firm since you're looking at so many more deals / not going as deep. My concern with the co-investment shop was that they would essentially just leverage the GP's work, but they assured me that they do all their own due diligence (e.g., building own models instead of using GPs, doing own primary research). Although I know from my consulting experience that recruiting and reality are often different things. This is where I am most conflicted, as I want to make sure I have a shot of transitioning to MM PE.
One thing I'll note is that I'd prefer to take one of these two offers rather turn them down and wait for more PE opportunities to arise. After having been through the process, it seems like a huge component of coming out with an offer is luck, and I don't want to play the odds. Thanks in advance.
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