Why are people so obsessed with MF?
Genuine question here. I get the value proposition of a LMM or MM fund, maybe some Growth as well as you will have more say as an associate, can move up easier into carry, may be able to specialize earlier, etc. One PE guy I talked to said "IB you can do in your sleep, but PE you actually have to think" which would fit into this more. But the MF market seems to be the same as BB IB but from the buyside perspective in terms of actual responsibility of an associate. I've seen threads on how now hours and even pay are the same, so I was wondering for those dead set on the MF route what makes it so attractive for you? Do you see it more as a long-term thing or another jumping point? If PE is supposed to be more engaging and give more responsibility, don't the MFs just kill that?
It depends on the firm. Just like LMM and MM PE firms, there are many different flavors of MF PE. I don’t think it’s as assigning a generalization across all firms that are of a certain scale or size. For example, I work at a MF PE firm as an Associate and I certainly have a lot more responsibility than I initially expected. I obviously handle a lot of the grunt work like modeling and writing investment memos, but my opinions on a deal that comes through the pipeline are valid and I am expected to provide value in IC discussions. On the portfolio company side, I work directly with our CFOs and CEOs without a lot of hand holding from the senior members of my team and often travel by myself to the company for meetings. Lastly, you mentioned that you “can move up easier into carry.” I don’t think this is necessarily true for all LMM or MM funds as there is often an established partnership group at top and upward mobility is rare unless someone leaves. At MF PE firms, they are constantly fundraising, expanding into other verticals / investment strategies, and opening new offices that there are always options to get promoted if you perform well. At the junior level, you also get paid more than LMM or MM funds full stop. The work life balance is always tough, but I don’t think it’s necessarily worse than banking by any stretch of the imagination if you’re halfway decent at the job.
Did you specifically aim for/ask about more responsibility when networking/recruiting? Any guidance on which firms are better in this regard?
That’s awesome! Didn’t think about the point of new funds leading to new partnerships, so thanks!
Do you have any estimate on how common your situation is compared to other MFs? I get pay will always be better there but in terms of responsibility and culture when looking at the firms to avoid list they seem like mostly MFs.
Another advantage of MF over MM is brand name - good if you have a certain thing you want to do after PE. For me personally I want to go to a certain top business school and having the MF brand name will signifigantly increase my chances of landing there.
I hear this a lot, but what’s after that? Why even go to a T5 program if you’re going to return to the same place or go to Corp Dev? I can see a corner case where you want Apple or Google or something but usually either a top MF is not needed or you can go straight there earlier.
Not trying to be snarky but it seems like a blanket statement people have when they don’t know what they truly want to do. Is there any profession you know that still hard stop requires an MBA?
Some people just want the name brand of a HBS, GSB or Wharton. It doesn’t necessarily have to do with getting a specific job afterwards. Yes, it’s a big commitment from a time and money perspective, but some people value the network you build and an opportunity to expand your horizons through an MBA.
People don't realise that 99% of people have never heard of specific MF especially the ones not named KKR and Blackstone, so the prestige factor is bullshit
Disagree. If you’re recruiting for other PE or HF jobs, brand name certainly matters. It obviously doesn’t if you’re trying to leave the industry.
Another clear advantage that you have at bigger funds is their relationship to the top business schools. You obviously have less connectivity if you go to a smaller LMM fund in a tier 2/3 city.
No shit a no-name PE partner will have heard of KKR, i mean the average person on the street
Comp and carry
After working at a LMM/MM PE fund for 3 years, I cannot imagine ever transitioning to a MF in my career. The level of granularity and leadership I've gotten at my firm is very fulfilling, and I am able to work on very nuanced workstreams that I probably won't get at a MF at this point in my career. And I also have a level of ownership as a 28-year old VP being the direct liaison in deals and negotiating on behalf of my firm that I feel is unique. So of course, YMMV with every non-MF PE firm, but I love the true hands-on aspects of a LMM/MM firm and wouldn't trade it to even join a KKR or Blackstone. I feel like the work I do is more fufilling than the superficial joy I'd get from telling people I work at KKR or that I was a cog in the machine for a deal that landed on the WSJ.
How do you know what you’re doing is unique to LMM / MM PE? You do realize deal teams at MF PE are just as lean as LMM / MM PE firms given sector specialization right? For example, KKR’s Industrials team has like 8-10 employees. So at any given time, there are maybe 2-3 (maybe 4) Investment professionals working on a deal so it’s hardly a “cog in the wheel” environment. You’re just a part of a larger organization. I think the point was to say there are many ways to find a fulfilling career in PE regardless of the size of firm you’re at.
Because I have numerous friends, acquaintances, relationships that are/were at MFs. It's a completely different experience.
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