Top UMM vs. MF?

I am a consultant interested in PE but I don't know much about the industry so I am learning by browsing this forum. 

It seems like there are several UMM firms worth joining over a MF firm (for example, many people here say they would take an offer from Berkshire Partners over Bain Capital).

Why is the term MF PE so valued then if there are some top UMM funds that can be better options? It seems like there are people on this forum who would blindly accept any PE offer from a MF even when it's not necessarily the best firm. Is that flawed thinking or are they right to do that? 

Comments (14)

  • Associate 2 in Consulting
1mo 

Is a top UMM really different than a MF in these ways? For example, outside of finance, very few people are familiar with Permira and Apax, even though they are MFs. Top UMM and MF are both likely very stable (UMM is also more focused on pure PE, whereas MF can get sidetracked as Credit AUM grows for example), launching new strategies is less relevant if you want to focus purely on PE, and more spots in a MF class doesn't seem like a significant difference. More resources may help, but I'd be surprised if the top UMM firms are lacking in resources. 

  • 3
1mo 
thebigshorter999, what's your opinion? Comment below:

It's important to remember that money and status are not everything in life. As a Jewish person, I value things like family, relationships, and community. Although joining a top MF PE can be a great experience and come with a lot of money and prestige, it's important to remember that there are plenty of opportunities outside of that.

  • 1
  • 3
  • Associate 2 in Consulting
1mo 

Sure, but top UMM also comes with money and prestige? My point is that there doesn't seem to be a significant difference between top UMM and MF from what I'm able to tell so far.

  • 1
Most Helpful
  • Intern in PropTrad
1mo 

As I was sitting around the table at our Passover Seder this year with the family, the conversation turned to private equity.

I asked him, "What makes a MF PE so valuable?"

My uncle paused and sipped his glass of wine, contemplating the question. He began to explain how the term 'MF PE' carries a certain prestige and is often seen as a 'Kosher' option for investors, much like how some of my family's favorite dishes are Kosher. He went on to explain that MF PEs have an established network which makes it much easier to get deals done. I thought about this and then began to question why people would blindly accept an offer from a MF PE even when it's not necessarily the best firm. Is this flawed thinking? Could there be better options out there? The conversation then shifted to some of the other family members in the room who have experience in the PE world. They explained how there are some top UMM funds that can be better options than a MF PE. They mentioned that many people on the job forum would take an offer from Berkshire Partners over Bain Capital, for example.

The discussion ended with a few more questions that I had, but there was one resounding conclusion: UMM funds can be a great place to start a career in PE, but you should do your research and don't be afraid to ask questions. Don't blindly accept any offer from a MF PE, no matter how prestigious it might be.

1mo 
DatDebtTho, what's your opinion? Comment below:

I want to be at this guy's Passover Seder table. 

  • Associate 1 in PE - LBOs
1mo 

At Bain Capital and I'm pretty sure we've only lost one cross offer to Berkshire (there have been quite a few) over last several years.

  • 2
  • 1
  • Associate 2 in Consulting
1mo 

That sounds unlikely. The only two cross offers I know since I started MBB picked Berkshire, and I don't even know many people in the PE group. I also believe there are very few cross-offers anyway given how on-cycle works and most people just take whichever offer they can get first. Ironically, the top comment on your last post is also saying to take a Berkshire offer over Bain. That said, I don't care to discuss specific firms in this post because that's not productive when people don't like what's said about their firm, I just want more general advice. 

  • 2
  • Associate 1 in PE - LBOs
1mo 

Maybe you're thinking about other funds. In the flagship PE fund it's demonstrably not the case. Also not sure what post you're referencing.

  • 1
  • 1
  • Analyst 1 in PE - Other
1mo 

no one cares, he was just giving an example

  • 1
  • Analyst 1 in IB - Cov
1mo 

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