Similar to what someone posted earlier for which UMM / MFs to avoid - which MM shops should be avoided whether that be for fundraising, returns, or cultural reasons (please elaborate on the latter if possible as one persons worst nightmare may be someone else’s dream)
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Based on the most helpful WSO content, here are some insights on MM funds to approach with caution, considering factors like fundraising challenges, returns, and culture:
1. Fundraising and Returns Concerns
2. Cultural Red Flags
3. Examples of Concerns
4. How to Evaluate
Final Note:
While some MM funds may have red flags, others can offer excellent opportunities for growth, balance, and returns. It's crucial to align your career goals and preferences with the firm's culture and strategy. If you're unsure about specific firms, WSO threads often have detailed discussions on individual funds and their reputations.
Sources: https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Troubled fundraising processes, Anyone regret LMM/MM?, Let's be honest about PE
Non-comphrensive and based off where friends at the firms in question have told me that the firm has both bad hours and assholes: Centerbridge, Golden Gate, Audax, MDP, GIP, Searchlight, Onex, AmSec, and Abry. A lot of these firms are in the struggling to fundraise / in survival mode, which probably accelerates how much of an asshole people are. You will work long hours in any large firm, so more important to avoid the assholes more than focusing on hours. Out of other usual names called out on WSO, I have friends at both AKKR and HIG that thought the people were good (albiet very sweaty hours), both of these firms also are probably much better places to be senior associates given top-tier performance.
emphasis on Abry and Audax
Anecdotally, hours are horrible, Assholes are not so prominent as the above suggests
What’s going on at Audax
In no particular order: audax, audax, audax, audax and audax
For those who aren’t familiar; I think the above is really driven by their notorious toxic work culture (can see this being echoed across multiple WSO threads). They’ve been doing fine in terms of actual business performance (raising growing funds and Preqin has their 2023 Fund VII in the 2nd Quartile and 2019 / 2016 funds in 1st Quartiles, respectively). If you’re committed to the Boston area I wouldn’t write them off immediately.
Who gives af about returns if the culture is shit?
Yep; great shop to be someone not an associate or below. Horrendous to be an associate. This post seems to be about junior posts; therefore the all the aversion to Audax.
Is this just private equity or also their debt teams?
Following
Following
Following
Audax, One Rock, Lindsay Goldberg
Any color on LG?
I don’t know much about Audax other than performance seems strong, but One Rock and LG both raised upsized funds in one of the toughest fundraising environments in recent history. Good fact pattern for juniors to grow.
Culuture not good, ppl are pyschos
Did one year as an analyst at Audax out of undergrad. Anecdotally, the culture is not far off from what you’d see at any other firm. The asshole narrative on this post and across the forum is a bit overstated IMO. Comp is in-line with MFs and career track is there if you choose to stay on. Buy and build (doing a bunch of add ons) can be inundating when it comes to workload and is likely the reason the hours are long, however, not dissimilar to those in banking.
This is just stockholm syndorme; of course you think it's normal because it's what you started your career off with as an impressionable undergrad graduate. Had a few friends at Audax, and the hours and culture there are definetly worse than vast majority of PE firms. The strategy does lead to longer hours than banking, no idea how doing a bunch of platforms get's you to less hours than the average group at a top 3 BB; just more velocity and volume at buy-and-bulid shops.
Comp well below MF
Would stay away from most MM firms in Boston
Lol so true. NYC and SF >> Boston for MM culture. Idk why people in boston are such dicks
Tiny man syndrome
THL
When comparing performance amongst funds what is a good gross MOIC for a MM fund in the later stages of the funds life (years 5-7)?
Not super helpful answer, but it varies highly by vintage. Pitchbook should have the quartiles listed.
Any in LA to avoid?
Clearlake… completely anecdotal but the people I know there are dicks
Can confirm, small dick, dick energy from Clearlake
Ares
First Alaskan Capital Partners and Kansas Capital Holdings are probably the main two mega funds to have on your radar.
Stay in IB
Agreed - don't fully understand the value proposition if you are in a good IB group. Deal experience and comp can be worse for many MM PE firms compared to IB with similarly bad WLB, also lack of visibility into upward progression with unclear chances of making VP.
Instead of a list of funds to avoid, here's a framework for what to look for:
1.Partner Involvement: Do the partners actually work with the portfolio companies, or do they just show up for board meetings?
2.Operational Bench Strength: Does the fund have a team of operators who can help with sales, marketing, tech, etc.? Or are they just a bunch of finance guys?
3.Founder References: Ask to speak to the founders of the companies they've invested in. Are they happy? Have they gotten real value beyond the check?
A fund's brand is less important than its ability to actually help you build a better business. Choose your partners, not your logo.
Just according to me ;)
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