Accept LMM PE offer or keep recruiting?
I’m a first year BB analyst in SF and recruiting for PE. Interviewed with the megafunds on cycle back in September and struck out. Had a couple final rounds at UMM firms since but could not lock anything down. Recently received an offer at an LMM firm for a 2021 start (MF/UMM firms) but also don’t want to risk an offer in hand. I still have a year and a half until my banking stint is over so definitely feel I have time to recruit for other firms but also know how unpredictable and competitive this process is at all levels. Would appreciate any advice.
if you want lmm then take the offer, what do you expect people to tell you?
Take the offer. Lower mid market PE is a fantastic job. You're like someone who got into Yale not Harvard and is crying over it. Besides if the fund is over $00M you're more mid-market than lower mid market. Those places can afford to pay you very well and your life is not nearly as bad as megafund.
You can still recruit on the DL and renege if you get a superior offer. It's not advised, but it's been done. It's not the most ethical thing, but you're not a bad person for doing so either.
What happens if you turn down the offer and you don't get another offer? That will be a gigantic mistake with knock on affects for a long time in your career.
Disagree with the above. Based off your post, I would recommend turning it down. I’ll caveat by saying that you may be signing up for a long recruiting grind, and recruiting burnout / fatigue is real. Eyes wide open.
You have an excellent profile, received an offer and have a long runway to recruit. You will get many more high quality looks. I know people that hit their stride in their second year and landed phenomenal roles. People in finance always remember where you did your junior years, and yes, signaling does matter. It can change the trajectory of your career and the opportunities presented to you.
Your post reads as thoughtful and I applaud that level of maturity.
I agree with this. To keep it short:
If other people with your pedigree got UMM/MF looks, so can you
The other day I saw an Accenture analyst with a semi-target background place into UMM/MF PE; If he can, so can you
But, agreed it might be a slog. Took me over a year of biting at every opportunity off cycle to break into UMM/MF.
I would recommend turning down the offer. A few years ago I was in a similar situation - frustrated with the grind of banking a year in, I finally got an offer at a decent middle-market shop, but in a location I wasn't thrilled about and focused on an industry I wasn't interested in. I opted to turn down the offer, and about 8 months later landed a job at a very well-regarded fund in my preferred industry group. I did this coming from a bank that doesn't traditionally place well into PE (at least not compared to the top BBs or EBs).
The reality is, if you are in a good group and you are a solid analyst, you will have many more chances to interview at funds you are excited about joining. Tons of top funds recruit off-cycle. Plus, you'll have more deal experience under your belt, be better prepared during interviews, and potentially even be able to leverage senior bankers to help you out during the process (if your firm is open to that, mine fortunately was).
It might take a while to end up in the ideal role, but if you are smart and put the effort in, I'm confident you can eventually find one. And the last thing you want to do after spending 2 years grinding in IB, is to spend another 2-3 years at a LMM fund you aren't excited to be at.
Of course, the other option is to take the offer, keep recruiting, and renege if you find something better. That obviously comes with its own set of risks and considerations.
Finally, you should take my advice with a grain of salt. Obviously things worked out in my favor, but if I had declined the offer and struck out in recruiting my 2nd year, I'd be giving you very different advice. Either way, best of luck.
turn down
you sound like my elderly neighbours
For what?
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