Seeking Advice on Risk vs Reward - UMM or MM w/ Career Track
Howdy Fellow Monkeys.
Would love some input on my current dillema / consideration.
Background
Studied engineering at a top 20 school and currently work in the tech group at a mid-tier BB (though our tech group is strongest group in the bank and punching up / has a good rep with sponsors). Currently recruiting off-cycle at a few different funds and have 3-4 superdays coming up. Seeking input on how to weigh the decision (assuming I have the luxury of choice). Its important for me to consider and align beforehand given the short exploding nature of offers.
Choices - Top 2 That I Am Between
UMM
Top choice rn between UMM fund that has an excellent culture. They hire a few per year, promote ~1/2 to senior associate, then have to go to b school or portco after. Excellent firm with a great reputation and I think the work would be very interesting and fun. Great culture with a very tight team and great people. Generalist program and dilligent investors would teach me strong fundamentals on clean processes (most are bank processes / come from sourcing firm) with high-quality businesses. My main concern is getting that sr associate promote. I would actually love to go to B school (not mandatory for me though) and they place decently well (last 2 years 1 went to H and 1 to S, of the 2 per year). I think the work here would be mostly with clean data / clean processes and strong companies. Would be very focused on investing fundamentals. Relatively hands-off with portco's. Ideal track for me here would be Aso (2 yrs) -> Sr. Aso (1-2 yrs) -> S -> Back here for VP.
MM
$1bn fund that is growing and next fund will be ~$2bn. Insane returns (~40%+ IRR on last two funds). Great culture, great people and looking to hire and promote from within. Lots of room to grow and take on outsized responsibility. Generalist investing but focused on human capital businesses, more services oriented. I strongly believe they will be a strong UMM fund in ~10 years. I think the actualy work product here would be a bit more gritty in terms of market mapping / sourcing / hand holding management / data cleaning, but there is also a ton to learn there. They hire 1 per year and the people are excellent. I would have a ton of job security and a ton of responsability. Not sure if b school would fit in here (or how much I care about that).
Dilemma
I am trying to weigh my options. My end goal (I think) is to be an investor and I am well aware of how many people get pushed out after time as an associate. Both are in the geography that I want to be in. I am more interested in the broad generalist investing of the UMM. Some services industries seem interesting but I am relatively confident that it would rank fairly low vs other verticals in terms of interest / passion for me. Does anyone have any thoughts or advice on how I should be thinking about my decision (assuming I have one)? My questions regarding useful information I am thinking about are as follows:
- What is recruiting like after 2 years at UMM if I do not get the sr associate offer?
- If i get pushed out after 2 years will all of the "good" funds not be hiring because they just keep their own top performers? Will the only open spots be at places with poor returns / culture / growth?
- How much should I be indexing probability of VP promote vs near-term optionality?
- How risky is b-school in terms of PE exit opps if I had 2/3 years at UMM going into it?
- On a similar note, what are admissions like at H / S? I am a white male but generally quite good at tests (not terrbly concerned about GMAT) and had a 3.8 engineering GPA undergrad
- How much should I be thinking about industries / verticals in terms of interest? Are "services" and "human capital" broad enough such that I can find a sub-sector that interests me?
- Am I silly to say no to a very selective and great-culture UMM?
- Am I silly to say no to a MM fund with insane returns and growth that I am explicitly told they want to hire and promote from within and only are adding 1 aso in my year?
Thanks for letting me brain dump, would love any / all input.
Based on the most helpful WSO content, here's how you can think about your dilemma:
Recruiting After 2 Years at UMM: If you don’t get the senior associate offer, recruiting can be challenging but not impossible. UMM funds often have strong brand names, which can help you land at other funds, but the competition will be fierce. Many top funds prioritize internal promotions, so open spots may be limited. However, your UMM experience will still carry weight, especially if you’ve built a strong network and have solid deal experience.
Probability of VP Promote vs. Near-Term Optionality: The MM fund seems to offer a clearer path to promotion and long-term growth, which aligns with your goal of being an investor. UMM funds often have a more structured "two and out" policy, which could limit your chances of staying long-term. If optionality and prestige are more important to you in the short term, UMM might be the better choice. If stability and a clear career track matter more, the MM fund is compelling.
B-School and PE Exit Opportunities: B-school is a solid option if you’re aiming for H/S/W, especially with UMM experience. Admissions committees value strong work experience, and UMM funds often place well into top programs. Post-MBA, re-entering PE is possible, but you’ll face stiff competition from other MBA grads, including those from MFs and UMMs. The MM fund’s anti-MBA stance might limit your options if you decide to pursue this route.
Industries/Verticals: Your interest in broad generalist investing aligns more with the UMM fund. However, the MM fund’s focus on services and human capital businesses is broad enough to find niches that might interest you. If you’re not passionate about these industries, it could impact your long-term satisfaction.
Risk vs. Reward: Saying no to a selective UMM fund with a great culture might feel risky, but the MM fund offers a unique opportunity for outsized responsibility, growth, and long-term stability. The decision ultimately depends on your risk tolerance and career priorities. If you value prestige and optionality, UMM might be the way to go. If you prioritize job security, responsibility, and a clear path to VP, the MM fund is a strong choice.
Admissions at H/S: With a 3.8 engineering GPA and strong test-taking skills, you’re well-positioned for H/S admissions. Your work experience at either fund will be a key factor, so focus on building a strong narrative around your career goals and achievements.
Selective UMM vs. Growing MM: Neither choice is "silly." The UMM fund offers prestige and strong fundamentals, while the MM fund provides growth potential and a clear career track. It’s about aligning the opportunity with your long-term goals and personal preferences.
Final Thoughts: If your ultimate goal is to be an investor and you value optionality, the UMM fund might be the better fit. However, if you’re looking for stability, responsibility, and a clear path to promotion, the MM fund is a fantastic opportunity. Consider what matters most to you—prestige and optionality vs. stability and growth—and make your decision accordingly.
Sources: URGENT: Take offer at Insight or UMM fund?, Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, How to approach LMM PE recruiting?, Q&A 2.0: 3rd Year BA/A/AC At MBB Going To UMM/MF This Summer, Blah experience at MF, heading to B-school. Recruiting tips?
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