MMs and UMMs that aren't JAMMBO's
Hey all - incoming analyst at a BB. I'm interested in going through on-cycle, and through researching the PE universe and my HH I've realized that I'm definitely more interested in the UMM / MM space. With the proliferation of LP capital over the past decade, it seems like the MM space is pretty crowded, with a lot of MM funds having relatively generic and undifferentiated approaches to investing (buy-and-build + "operational improvements" to realize synergies + hoping to exit with multiple expansion). If anyone would be able to provide insight into some of the more differentiated MMs / UMMs that aren't JAMMBOs, that would be greatly appreciated!
Some firms that I think fit your criteria:
Differentiated Investment Strategy
Industry Specialty
To add, a lot of LMM / MM healthcare PE funds have sprang up since the pandemic (especially in NYC). TBD how well they perform as many have only raised a few fund so far.
Good comment but definitely would not recommend Centerbridge to anyone in 2024...declining fund
Would say it's still a solid place to do a 2-and-out stint - top of the line pay, unique investment and staffing model for juniors, and strong name brand for B-school or lateraling.
That's fair. Nowadays PE associate opportunities should be evaluated through the 2-and-out lens given how few firms are actually able to consistently promote internally...
Would also add, something to be aware of during your recruiting process / research is whether a firm is actually differentiated in their industry (in that they have industry-specific knowledge or expertise that truly sets them apart from the field) or investment strategy. Over the past few years, LPs have become more cautious on generalist investors and have shown a preference for industry-specific funds. As a result, a lot of funds have pivoted to market that they are industry specialists. A prime example of this is THL (no hate on the firm though); THL's marketing spiel to LPs is that they're specialists in the intersection of technology and other industries (hence why their three main verticals are all technology + (insert industry)), and they've also raised an Automation fund marketed on automation + other industries. Based on their last fundraise, LPs clearly loved the message, and THL's a great fund, but I don't think most people in PE consider them as differentiated technology specialists. Another example is all of the new C&R and services spinouts (Percheron, LightBay) that are in reality just the average JAMMBO focusing on roll-ups.
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