Take MM offer or go for UMM/MF?

Hi guys,

Recently got a (L)MM PE offer but a bit hesitant to accept – keen to get an external opinion on what you'd do in my situation. Some details are a bit vague for anonymity

Background:

  • European, went to a decent regional target (think Bocconi, SSE, WHU)
  • Currently at MBB (BCG/Bain) London office (bit more than year), top-quartile performance, focus on PE
  • Previous internship experience at a London EB and LMM PE

Offer:

  • Firm: Regional MM fund (think DACH / Iberia) with ~$4bn AUM; next fund ~$2-3bn; no strong sector focus. Strong historical performance (30%+ IRR for 10 years), esp. in last 2 funds; consistent performance (vs. few home run investments)
  • Comp: base + bonus below UMM/MF but relatively competitive. Includes material equity at associate level and a clear trajectory for greater equity share with promotions

My thoughts:

Pros for the move:

  • Safe (since I already have the offer)
  • Long-term preference for working at a MM firm (clearer path to partnership, better lifestyle, personally find work more meaningful)
  • Fund looking to expand into a geography where I'd be a natural core member (others don't speak the language; e.g. think DACH firm starting to invest into Netherlands)
  • Overall good impression of the people / culture based on interviews and talking with colleagues who have worked with the firm

Cons:

  • Miss out on the large fund experience and brand name; more difficult to move up-market than downmarket
  • Move out of London (would like to stay few more years, however not for the long-term)
  • Lower initial cash comp than at UMM/MF
  • Don't get to explore opportunities / other funds very thoroughly (literally first PE interview for FT position)

In general much of the cons are contingent on me being able to land a UMM/MF spot in the first place. I do feel relatively confident I'd be able to find a spot at one of the slightly larger firms (e.g. AUM of 10bn+ at least) but given the inherent uncertainty in the process and potential drought in the market in case of a downturn there is naturally 0% guarantee.

Keen to hear your thoughts!
Your fellow monkey

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