UMM -> LMM -> UMM?

Hey all - I am leaving my UMM fund in a few weeks and have an offer from a first time LMM fund in a city I don’t really want to be in. I accepted because I don’t want a gap and market is bad. Assuming I make it to VP, would it be possible to move back to MM/UMM PE in the city I’m leaving from? 

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Based on the most helpful WSO content, transitioning from a UMM fund to an LMM fund and then back to UMM/MM is possible, but it depends on several factors:

  1. Skillset and Experience: If you can demonstrate that your time at the LMM fund allowed you to develop valuable skills (e.g., sourcing, operational improvements, or niche expertise), it can make you an attractive candidate for UMM/MM funds.

  2. Performance at the LMM Fund: Success at the LMM fund, such as strong deal execution or value creation, will be critical. Highlighting measurable achievements will help you stand out.

  3. Networking: Maintaining and expanding your network in the city you want to return to is essential. Relationships with headhunters, former colleagues, and industry professionals can help you identify opportunities.

  4. Market Conditions: Timing and market dynamics will play a role. If the market improves and there’s demand for experienced VPs, your chances of moving back to UMM/MM increase.

  5. Brand and Reputation of the LMM Fund: If the LMM fund performs well and builds a strong reputation, it could enhance your profile when seeking to return to UMM/MM.

While it’s not the most traditional path, many professionals have successfully navigated similar transitions. Focus on excelling in your current role and positioning yourself strategically for the move back.

Sources: Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, Any career regrets after moving from PE to public markets?, The PE career path, From Private Equity Associate to VP in Private Equity, From Senior Associate to VP

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

Gotcha. I'm surprised that you're repeating a year given you're taking significant career risk going to a first time fund. Do you at least get carry or some sort of incentive for taking a big bet on people whom you don't know?

Nonetheless, agree makes sense to make the most of it and try to advance, then revisit lateraling. Your biggest hurdles will be:

  • Forming a coherent story around your path (e.g., would've been easier if you knew the LMM founders and intentionally wanted to try out something more entrepreneurial with a first time fund, bit tougher that you sort of just fell into it)
  • Competing for SA/VP opportunities (for your next move) with those who stayed in UMM (or even coming from mega funds) with more pedigree
  • Providing confidence to your next firm that you're not just job-hopping, because you'll have worked at a number of shops by then

I'd say possible but not easy. A bunch will depend on (i) market conditions, (ii) your profile (bonus points if diverse/female) and pedigree, (iii) deal experience that you get at the UMM and LMM.

 

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