URGENT - MBB vs MM/UMM PE
Hey everyone, have a time sensitive decision to make. I'm debating offers between an MBB and a MM/UMM PE firm (~$6-7bn fund size). A few considerations: 1) the PE firm is located in a T2 city I probably wouldn't see myself living in more than 2-4 years 2) the PE firm has a focus on a certain vertical (e.g. business services / C&R / industrials) - would this limit my mobility to another PE firm in a few years? 3) my longer term plan is to work at a similarly size MM/UMM PE firm in a T1 city. Thanks!
Congrats! Is this Roark? If so, I would take the offer.
Not Roark, but thanks - would still be helpful to know why though if you don't mind
Cool. Advice still holds. Take the PE offer and then look to lateral later. MBB to PE is doable but harder
Could you provide some more detail on why you'd take Roark? I'm currently recruiting FT and have an offer at a mid-tier BB. Long-term, I'm interested in MM/UMM PE (not MF)
bump, if anyone has any more opinions, would be great - am going through Roark's process now
If you're looking to end up in PE, starting in PE is an easier route (in my opinion). Unless the industry focus is extremely specialized, you're going to be doing similar diligence in other industries, so that shouldn't hold you back too much.
bump - would love to hear some more opinions
Hmm, depends on your confidence of recruiting out of MBB. If you think you can swing a same sized fund, I would say do MBB. It's a different skillset, and you'll get a strong finance skillset from doing PE down the line, so I think doing MBB + PE gives you a pretty well rounded toolkit going into an MBA or your next job. Whereas, PE all the way through, you're a finance guy. However, this does make the ultimate transition to PE more difficult, so you are in a way taking on more work for yourself (it's like playing on hard mode - rewarding if you make it, but hard).
What do you mean that being PE all the way through would make the ultimate transition more difficult?
Sorry couple drinks in, I think MBB -> PE makes the transition to PE more difficult, but you have two skillsets instead of one. So you are better at general management and finance. And I think that's important because no matter how much you think you want to do PE now, you just never know until you actually do it - you may love it, may hate it, but you can't truly *know* until you do it. So having both skillsets is the ultimate optionality preserver. MBB + PE? That's as good as it gets.
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I'd go PE if you want to stay in PE. $6-7B in AUM is a legit fund. As long as you're going to get good training and actual deal/modeling experience as an analyst (which is likely given the size of the fund), then you'll be fine.
In my opinion/experience, if you do 2/4 years and are able to move up from analyst to associate and then get a year or two of solid associate experience under your belt, you won't have much trouble moving to another mid sized fund in a big city.
For MBB, it's an uphill battle to begin with and although there are some funds that are consultant friendly, many are not. You'll also struggle with a weaker finance skillset compared to peers, which will make both recruiting and the first 6/9 months more of a struggle.
Worst case, you could always do 4 years in PE and then get your MBA and re recruit after. With 4 good years of PE experience and an MBA, you'll be able to end up at a good MM firm if not better.
The only case for MBB in my opinion is that it will give you a broader skillset and a more recognizable name on your resume but honestly, many consultants would be fighting to end up in the position you're in now. I'd take the PE offer.
Bump - in a similar situation (interned in BB this past summer, have FT offers at McKinsey/Bain and MM/UMM PE fund), and I'm ~80% sure I want to do private equity, but not 100%
Pretty good size fund, would take PE if you want to stay in it but MBB can’t go wrong
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