Lateral vs. MBA

Choosing between a lateral move to a UMM shop and attending H/S for your MBA is a significant decision, and both options have their merits. Based on the most helpful WSO content, here are some key considerations to help you weigh your options:

Option 1: Lateral to UMM Shop

1. Clear Path to VP: If the UMM shop offers a clear trajectory to VP, this could provide stability and a defined career path. Many professionals in PE value this clarity, especially in uncertain markets.
2. Market Conditions: Given your concerns about the current market, lateraling might feel like the safer option. You’d avoid the risk of being unable to secure a post-MBA role, especially if PE recruiting remains challenging.
3. Opportunity Cost: By skipping the MBA, you save on tuition, time, and the opportunity cost of being out of the workforce for two years. This could be significant if you’re already on a strong career trajectory.

Option 2: H/S MBA

1. Prestige and Network: An MBA from H/S is a rare and prestigious opportunity. The network and branding can open doors across industries and geographies, providing long-term career flexibility.
2. Optionality: The MBA gives you a two-year window to explore other career paths (e.g., entrepreneurship, corporate roles, or even pivoting industries). It also raises your "floor" in terms of career options, as the H/S brand carries weight even if you decide to leave PE in the future.
3. PE Recruiting Post-MBA: While PE recruiting post-MBA is less structured and competitive, the H/S network can still be a significant advantage. Many rooms you walk into will have someone connected to H/S, which can help with sourcing or closing deals.
4. Personal Growth: Beyond career considerations, the MBA experience itself can be transformative. It’s a chance to build lifelong friendships, take a break from the grind, and gain new perspectives.

Key Questions to Ask Yourself

• Long-Term Goals: Do you see yourself staying in PE long-term, or are you open to exploring other paths? If you’re committed to PE, the lateral move might make more sense. If you value optionality, the MBA could be the better choice.
• Risk Tolerance: Are you comfortable with the uncertainty of post-MBA recruiting, or do you prefer the stability of a clear path to VP?
• Timing: If you turn down H/S now, would you regret it later? Getting into H/S from PE is increasingly difficult, and this might be a once-in-a-lifetime opportunity.

Final Thoughts

If you’re passionate about PE and the UMM shop offers a strong path to VP, the lateral move could be a great choice. However, if you value the optionality, network, and prestige of an H/S MBA—and are willing to take on the risks of post-MBA recruiting—it’s hard to pass up such a rare opportunity. Ultimately, it comes down to your long-term goals and risk tolerance.

Sources: Lesser known MBA career options? Looking for advice on what to do post-HBS., Lateral or B-School?, Recently realized I want an MBA - Do I have a shot at Harvard, Wharton, Stanford?, Am I Thinking About an MBA Wrong?, Tomato Jos: The “Extra” Alternative Career for Top MBA Grads