MF Tech Private Credit vs. Early-Stage Thematic Tech VC
Debating between two offers: doing tech private credit investing at one of the largest MFs as an associate (summer '26 start) or joining a lean seed - series B thematic tech VC firm (~0.5B AUM) where I'd leave my IB analyst program at MS soon (not complete my second analyst year).
I've wanted to be in VC for a really long time (went to a top school where it was popular) and think it's really exciting that this firm is thematic and helps build pattern recognition and investing acumen. On the flip side, it's not very well-known like the MF is and I know having the MF name on my resume would go a long way. However, the MF PC role feels a bit like IB 2.0 in the sense that it's very structured, is modeling heavy, and is based on stable senior secured notes that give you the minimum return not really Mezzanine or anything hybrid. I don't think I'd want to be in such a late-stage stable PC role long term but who knows and I do think it would teach me a lot about tech companies in general and a small portion of its deals are also ARR based lending, though most are FCF oriented.
My heart is saying VC, but there are a couple main drawbacks. (1) The pay, while still good, is significantly lower than MF PC and the career progression is a little less certain. I already negotiated my salary and they bumped it but it would be around ~190K vs. around ~300K TC at the MF. For more context, even though I'm a current 2nd year analyst, the VC firm said my title would be associate and I'd join asap, and at the MF, the title is also associate but join after summer 2026. The pay differential seems steep though.
The other thing is this VC role is still pretty diligence/modeling focused not really much sourcing as they get lot of high-quality inbound, but hoping it'll still be founder facing. The modeling is more like cap table and retention stuff though which i think is more interesting.
Would love to hear any advice, thank you!
Congrats on Blue Owl. You should take the PC offer. Modelling in PC is not bad at all. Yes it’s more structured but you’re learning how to invest from day 1 in a growing asset class.
If their goal is to do VC investing, why would they go into senior secured direct lending private credit. An investing style quite literally the opposite of VC-style investing
it's not blue owl, one of Apollo/KKR/Bain Cap/etc caliber but VC is what interests me more but comp and benefits differ
I have doubts that PC is still a growing asset class. It seems like the golden age has peaked too soon and with rate cutes happening, it's harder to generate any good return from being a senior secured lender. Regardless, if its an MF, they should be fine regardless but PC seems like the same thing over and over again with not much learning happening after your 5th or 6th deal.
Doubts? Look at fundraising and how tight the credit market is right now. Maybe the pace of fundraising has slowed to lower levels as PC has increased penetration but the shift to privates is here to stay. I find the rate declining comment interesting and one that is parroted by the media - ‘PC is sexy because of the return levels’. But the way PC has always been marketed is a spread to the liquid market and to broader debt securities (high yield and treasuries) that’s why the carry level is set where it is. Shouldn’t the rate of return of all securities come down as rates decline? Unless that asset class is built by crazy inflated exit multiples built on higher ability to pay due to lower rates (ahem PE). My point is, the relative attractiveness of PC is still firmly there. The same argument cannot be made for PE and VC….
Do you know what AO2 at the MF vs VC firm would be? Should get a sense of the long term gap as well
both places would be ~2 years associate and ~2 years senior associate then principal
Yes but Im asking about comp. My hunch is that the comp gap will widen substantially unless VC gives you some serious carry
If you want to be in VC, go into VC. There's not much overlap btw private credit & early stage VC. Even if the shop isn't the best brand, it's advantageous to start your VC career earlier: start building reps sourcing, meeting companies, building a peer network, etc. The one caveat is if the sector focus of the VC isn't one that you care for, it could be challenging to lateral to a different sector.
Plz don't go into later stage vc unless this is a tier 1+ shop
What are the tier 1+ shops for later stage VC in your opinion?
May I ask why?
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