Why are people so fixated on going to MF from IB?
It seems like most people going into IB want to exit not only to PE but to a MF. People choose groups not based on their interests but rather on historical exits (this has created a self-selection bias where people think that only certain groups are good for exits whereas it is more than likely that these groups are simply hot spots for people that want to exit to PE so naturally more people get offers). Anyway, do people chase MF simply for the prestige or slightly higher pay? For people who went into MF, did you do it because you were actually interested in the work? Did you go into it to open up more doors in the future?
To me, MM is much more attractive for a few reasons: - Less likely to be 2 and out, more room for growth - Less financial engineering and more thesis-driven change - Leaner teams - Simply more potential companies/deals - Better lifestyle overall
I assume most people know that the chances of getting promoted to VP in a MF or even UMM are tiny so they will more than likely have to move downmarket so why not just start there? At a certain point in your career doesn't it make sense to have a job that you enjoy and want to stay in rather than always thinking about the next step?
I am not hating on MF at all but am just trying to understand the fixation around it. Am I just thinking about this the wrong way?
Generally speaking the pros of MFs are comp and exit options. Like you mentioned, you can always move downmarket later and having a MF on your resume can help immensely.
I'm a LMM guy, and I think it best suits my current skillset and my long term goals. That said, I'd do a well-compensated 2 year stint at KKR in my 20s for the experience if I had the option.
That said, I think there is some benefit to starting in the MM instead of MF. Especially in the LMM, you have to learn the softer PE skills almost immediately - before you hit VP you are on boards, do some sourcing, negotiating, hiring professional services (accountants, legal, etc), helping fundraise, etc. That learning curve can be harder for the banker-type than building returns models and deal memos.