Best offer for Multi-Managers?

Hey everyone,

So my long-term goal is a PM at a large MM (P72, Millennium, Surveyor Capital, BAM, etc.) for discretionary L/S. As of now, I have two FT offers, Private Debt at a large firm (20b+ in AUM) and a Prop Trading firm (will be given a $2m book to start and there is no capital contribution). Which would be better/easier to make the leap to MM?

Hedge Fund Interview Course

  • 814 questions across 165 hedge funds. Crowdsourced from over 500,000 members.
  • 11 Detailed Sample Pitches and 10+ hours of video.
  • Trusted by over 1,000 aspiring hedge fund professionals just like you.

Comments (7)

Jul 3, 2019 - 6:17pm

Private debt.

Stronger resume value. Since you'll be coming into MM at junior level in any case that matters more than actual experience.

Not a lot of well-regarded prop shops around.

Jul 3, 2019 - 11:31pm

Really? The models in Private Debt aren't that complex. Also, would it even be possible to make the jump from MM Private Debt to MM Hedge fund without prestige? (School, BB internships, etc.)

Array

Jul 5, 2019 - 2:23pm

Private debt will be better for building a long-term foundation in understanding how to think about a business from an investment perspective and effectively articulating a thesis. Models are never the hard part; the hard part is being able to break down a large, complex business into a few fundamental drivers that move the needle from a earnings standpoint. Prop trading would be good if you wanted to be a trader at a MM, but my gut feeling is you're trying to be analyst. Just my $0.02 having worked in the space.

Array
  • 1
Jul 5, 2019 - 7:10pm

I dont know of a single MM PM that does private debt. Bear in mind MM HFs tend to be market neutral, and i'm bot sure how you'd go about pairing or hedging your private debt holdings.

Prop trading is probably a little more relevant, but at the same time i dont know a single MM PM that came straight from a prop trading role.

So neither role seems like a great fit unfortunately.

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
Jul 8, 2019 - 11:09pm

I would think being involved in the markets would be more appealing for large hedge funds, no? A couple of my buddies did private debt and they said the models are usually just plug and play. Also, given how inflated the leveraged loan market has gotten, private debt completely depends on which firm you work for.

Start Discussion

Total Avg Compensation

April 2021 Hedge Fund

  • Vice President (18) $520
  • Director/MD (10) $359
  • NA (4) $325
  • Portfolio Manager (7) $297
  • Manager (4) $282
  • 3rd+ Year Associate (18) $269
  • 2nd Year Associate (26) $251
  • Engineer/Quant (49) $233
  • 1st Year Associate (63) $188
  • Analysts (181) $168
  • Intern/Summer Associate (15) $125
  • Junior Trader (5) $102
  • Intern/Summer Analyst (203) $82