What’s the mega fund cutoff?
How many firms are mega funds? Headhunters referred to plenty of funds I’ve never heard of better as mega funds during on cycle. What are the main mega funds and what’s the criteria for that?
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Would say that it is based on latest fund size, and I’d say a somewhat arbitrary cutoff is ~$15bn (have seen previous threads lower the threshold down to $10bn).
There are plenty of megafunds that maybe your average Joe / college student haven’t heard of (CD&R, Advent, EQT, H&F - this community obviously knows most of these names), and they actually have higher fund sizes than “traditional” megafunds that may have more name recognition (e.g. TPG, Bain Capital, an Ares, etc.). Just to be clear, the latter group is still unequivocally considered megafunds, and any of these jobs will set you up nicely (and are really difficult to land, especially if you’re non-diversity).
Would you say Brookfield is a megafund
Not the guy you're replying to, but I would say it definitely is.
However, a lot of their AUM is in RE as opposed to corporate, so if someone is only interested in corporate, the designation isn't too meaningful. This is why I personally think the term "megafund" nowadays isn't really important outside of general conversations about recruiting or the industry
No
There's no real definition. Some might group firms like BX and APO with Bain, even though the former have fund sizes over twice as large. It all depends on what you're using the term for. If you want to work at a fund with a specific fund size cutoff, just specify that to the HH
Pretty simple, just have to answer two questions.
1- is the information coming from a headhunter? If yes, then that information is worth absolutely nothing.
2- if you have to ask if it’s a megafund, it probably isn’t.
Been seeing a lot more people say “UMM/MF” to describe where theyre at and i think it makes sense to use this designation for funds that aren’t your typical Bx, KKR, APO, Carlyle, etc. but have sizable aum and latest fund is over that 10-15bn threshold. UMM imo is 5-10bn, but there’s also some elements of the strategy to consider (some funds this size almost exclusively do MM deals and don’t go too huge) so the boundaries can be a little flexible (MM/UMM?)
Definitely MFs: KKR, Blackstone, Apollo, Carlyle, CVC, TPG, Bain Capital, Warburg Pincus, EQT, Vista, Thoma, Clayton Dubilier and Rice, H@F, Silverlake, Advent.
Then there are those on the verge of MF / arguably already a MF: Permira, Clearlake, FP, Leonard Green, Ares
hope this helps
Ok prospect
This is a fine list. Bain is definitely on the downwards trajectory though and Permira is a MF not UMM. Clearlake, Francisco, Leonard Green are strong UMMs.
Probably need to add Platinum. 10bn last fund now looking to raise 15
great list - ignore the above
Permira is def a global MF no doubt. Don't think ares is almost a MF. Would put apax / TA in the second category too
.
+ carlyle
Good list. Only one I’d maybe question is CD&R. Feel like they’re just a big PE firm whereas the rest of the list has multiple strategies, global reach, etc. If your including CD&R that opens up the door on other $10B fund size PE players that I’d argue are just UMM
What UMM corporate buyout PE funds would be in the next tier below this? Thinking Veritas, NMC, Berkshire Partners, Charlesbank, WCAS, GTCR, MDP, THL, among others.
Would probably have Leonard Green, Genstar, Clearlake, Francisco, American Securities, and Golden Gate as well.
What about platinum / H.I.G.?
Where would an Oaktree/Sixth Street/Ares be?
Those firms are much less focused on traditional Private Equity and Growth Equity as the other firms.
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