Why is Berkshire Partners so prestigious?
Looking at UMM/MM funds, Berkshire partners seems like a pretty run of the mill UMM (comparable to a place like THL, smaller fund size vs some others like FP/Genstar/TA/etc, returns apparently underwhelming). Why is it considered so prestigious? Looking at exits, basically every singe past employee on LinkedIn is either at HBS, at a top hedge fund (saw a few Viking, Coatue, etc), or at a MF (saw Bain, Advent, TPG). At any other UMM you see most past employees at random MMPE firms but that just doesn’t seem to be the case at Berkshire. So what does Berkshire have going for it vs other funds with comparable fund sizes / better returns?
Yuuuuuge wangs.
if you have to ask you'll never know...
Think it’s similar to Bain cap where it’s a “historic” name, had great returns at some point, and a sort of strange affiliation with HBS. The returns and b school placement are not what they once were, but the prestige halo remains.
Just curious, couldn’t this be said about any “historic” UMM? CD&R, THL, etc, but for some reason Berkshire has better b-school placement and exits
Berkshire hires mostly from consulting pool unlike CD&R, THL. So in that vein more similar to Bain / Advent. That, combined with its Boston location naturally yield higher HBS acceptance/yield.
Also think from what I’ve heard Berkshire’s team is much more stable than almost any other UMM, with most of the leadership/seniors having started and stayed there. Likely helps with maintaining reputation/investment perspectives
If their returns continue to lag, I wonder if this view changes a bit. With their name brand, I was pretty surprised they missed their most recent fundraising target.
Does anyone know why they missed their fund goal (by a few hundred M)? Seems recent funds performance did fine enough.
Have a friend who works there. Tough to find a better culture for a fund that size, they go to bat for associates who want to go to B school, and pay might be the best in all of PE (not going into details). That’s why.
Any insight on comp? I had heard it was in line with MF but didn’t know it was significantly better/different?
lmao he said “not going into details”
Anyone else have details on comp point? Is that more long term or as an associate?
Pretty well known in the industry that their co-invest for associates is very generous. Then cash is roughly on par with MF
Unrelated question but why would any PE firm not offer generous co-invest? Seems like a win win for everyone.
Associates get skin in the game, huge upside opportunity, and access to capital that they wouldn’t otherwise have.
Firm gets additional dollars (even though I assume co-invest is no fee?), associates have incentive alignment, and it’s basically looked at as comp so they’re saving that money on a cash basis.
Not sure if firms are somehow incentivizing the 3rd party lender (seems to always be First Republic?) to give low rates or if it’s just a marketing gimmick from first republic to get a bunch of young high earners into their platform on some relatively low risk loans (coinvest is personally guaranteed + no UMM/MF fund is going to actually go to 0).
My point is, why is every reputable UMM/MF out there not offering $300K+ in associate co invest? Just don’t understand the downsides
Anyone know about WLB/culture? What would typical hours look like?
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