UMM Funds
What are the best UMM funds and why? Thinking for both associate and VP level roles. Context on comp, culture, reputation, investing style, etc would be helpful
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Berkshire is the first name that comes to mind. Strong reputation, been around for quite some time. Historically have performed super well although hit a bit of a bump with recent funds. I'd bet they could turn things around but we will see. Smart people, great business school track record, history of associates continually coming back as VPs after 2 years. Home grown partners. Generous co-invest program for associates and good overall comp. I would classify Bain as large cap but think they tick most of the same boxes. Both based in Boston although Bain does have a smaller NYC office.
YMMV so what you hear from two different people at the same fund can vary significantly. I feel like what I've heard about Berkshire (and Bain) has been pretty consistently positive across the board. Usually you're going to have to "give" on at least one variable. For example, GTCR is a tremendous firm. They pay extremely well when you factor in they're based in Chicago, they're well regarded, have had several amazing funds / investments, etc. Great business school track record too. But I've spoken to several people about the firm and it's always been described as intense and/or sweaty so culture appears to be lacking a bit.
Agree that there is almost always a trade off. GTCR is an amazing fund with one of the best track records, but I’ve never seen a firm with such a revolving door or Associates and VPs. They are hiring 24/7
I know some GTCR people from school - definitely a phenomenal fund with great comp, but totally right on the intense culture. That said, it depends on which group you're in - two of the groups are horrendous, one is decent, and one is the cushiest role you could imagine.
Can you provide details?
Would agree with this - if you’re open to Boston, hard to imagine a better firm than Berkshire. Interviewed with them a few years back and made it pretty deep but ultimately didn’t land it and am now at a competitor.
Everything above is true, friends there love culture, comp is as good as anywhere, awesome co invest, etc
The returns point is honestly overstated, no funds have been actually bad they’ve just been more not great, and recent years look to be picking up (had some monster exits recently).
Also, think their comp set has all gone balls deep on tech (Genstar, NMC, GTCR, etc). All those UMMs have gotten great returns and grown by riding the tech wave and Berkshire is much more evenly spread, so not surprised they haven’t kept up with places like Genstar that are nearly all tech. Would imagine this downturn is going to reward them, much better to be in a roofing company that spits off FCF (yes, this is the kind of stuff they invest in) vs a software business.
The downside is probably they look at some very dry businesses (though some cool consumer names) and pretty industrial heavy.
Other consideration is on fund size - other UMMs have gotten so massive in recent years that they’re nearing MF level, while Berkshire has stayed in its lane a bit more. Not necessarily a bad thing, but they won’t be able to do mega-billion dollar take privates the same way GTCR could
I mean Berkshire’s most recent fund is about the same size at GTCR’s most recent fund size, so it’s not that they can’t do deals the same size; that said maybe they won’t go after the big game as part of their strategy
Saw this list on another post, but from a healthcare perspective, some of the strong UMM names that come to mind are:
WCAS / Altaris / Arsenal / Audax / FFL / Harvest / Gryphon / Nautic / Oak Hill / Apax / GTCR
Some of these aren’t really UMM - Apax is touching MF depending on how you define it, and Nautic and Gryphon are MM to LMM depending on how you define it
Agree with Apax, could put Gryphon and Nautic in MM. Nautic appears to do some sizable deals though like ARA take private. Deals $100m - $1bn+ so a range
I don't think anyone views Gryphon and Nautic as LMM. Both of them have ~$3B funds. Might do some smaller deals sometimes but don't think that makes them LMM. Even Warburg does deals at sub-$500M TEVs and no one is saying they aren't a MF because of that.
Anyone have a list of solid up-and-coming UMM funds
heard about this cool fund the other day called Blackstone. You should look into them.
thats a cool name but im more of a BlackSedimentary type of guy
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