MBB (incl. PE advisory) or Lower MM PE?

Hi Monkeys,

Around 10th of February I expect to receive offers from both MBB consulting (will include PE advisory assignments) and a Lower MM PE 1bn fund (in a €5bn+ AuM PE Group), investing €50m+- tickets in companies of €50-200m EV; both at an entry-level position.

What should I do?

Background: I am almost 27 and I have done stints in PE funds (€2-20bn+ AuM, well regarded but not TOP 20 names) for almost 2 years post-MsC graduation; I feel I would have better exposure in buy-side when entering later, at Associate position (post-MBA), rather than continuing as an Analyst. On a personal basis I invest in listed stocks and I am reasonably successful. I am based in one of the main continental EU economies. In 2 years I plan to apply to HBS/Insead (when about 29); after I go to MBA (and even if I don't), my plan for the mid/long term is one of these 3 (in order of preference):

  • join a Warren Buffet-style elite HF (where I could do both listed and non-listed investments); Berkshire Hathaway (or similar) would be ideal, but I want to remain in Europe
  • launch a Warren Buffet-style HF
  • join a MF / upper MM PE fund

Even though I have reasons to believe the salary package would be better if I choose the MM PE (c. 30%+), I feel that MBB would be a better choice for several reasons: - I would enjoy more the environment at MBB in the short-term (more young people, environment encourages speaking up, etc.) - I could learn more (cherry pick teams/assignments, receive training, give/receive (more) feedback, etc.) - Increase my chances above-mentioned MBAs (for some reason I believe MBB would be higher regarded) - Better exit opportunities (than at a Lower MM PE), ie. have an entry ticket into a better HF/PE fund later (stronger skillset, MBB brand name, network). - And remain close to PE as I could do Due Diligences

In addition, I am afraid that I could be blocked into local Lower MM... and won't be able to pretend a MF/ upper Mid Cap / prestigious HF later.

Since around me I received mixed opinions, I would really appreciate your advice!

Thank you!

2 Comments
 
Best Response

My thoughts are:

  1. You really need good pre-MBA buy side experience to maximise your options post MBA (e.g. most elite hedge funds take ex-MF associates, getting into PE post MBA is tough, with)
  2. Not clear what your experience is but most people on the buy-side do 4 years pre-MBA), so you might want to consider doing 2 years at MBB or MM PE and then doing 2 years somewhere else (MF or HF).
  3. You are a bit more differentiated having done a PE analyst stint vs. MBB assuming the PE firm is well regarded. But a 1bn fund is a bit boarderline; some are really great and differentiated, some are just a bit mediocre. A 5bn+ is a different level, where most funds are good.
 

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