UMM vs MM offers

Lucky to be in a position where I recently received two NYC PE offers, one at an industrials UMM shop ( $3 billion latest fund) and one software MM ( $1 billion latest fund.) The UMM spot is career track but is in a sector I'm not as interested in (also known to have a more intense culture and insane hours) while the MM shop is a 2 and out program but I like the investing area and culture. I personally would not mind going to b school. Would appreciate any advice with this situation. Is it possible to move upstream later in my career? Banking has been a grind and I want to be looking forward to where I go next but also want to keep career trajectory in mind.

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Comments (11)

Jun 26, 2020 - 6:49am

Few questions for you - and if you want to PM can give you more detailed advice

  • Any significant difference in comp between the 2?
  • How have the business school placements been from each historically?
  • How strong is the brand of the MM fund?
  • Dry powder available at each of them? Can you expect to work on multiple transactions at each or would there be a big difference

Edit - if fund 1 is the fund I think it is, can give you a good number of thoughts on it

  • Intern in IB - Cov
Jun 26, 2020 - 2:45pm

Thank you for the response!

1) Comp at the UMM shop is higher by around 25k. ( 225 vs 250 pay but less of a consideration this early in my career. Let me know if I'm thinking about it the right way.
2) Virtually no b school placement at the UMM (I count one H, seems to be career track or lateral to different PE firm) while 4-5 from MM have gone to H / S (not very recently)
3) MM fund has very strong brand and is well known (not a household name but definitely recognizable)
4) Not sure about this but MM is raising a new fund while UMM recently closed

Most Helpful
Jun 26, 2020 - 3:11pm
Intern in IB - Ind:

Thank you for the response!

1) Comp at the UMM shop is higher by around 25k. ( 225 vs 250 pay but less of a consideration this early in my career. Let me know if I'm thinking about it the right way.
2) Virtually no b school placement at the UMM (I count one H, seems to be career track or lateral to different PE firm) while 4-5 from MM have gone to H / S (not very recently)
3) MM fund has very strong brand and is well known (not a household name but definitely recognizable)
4) Not sure about this but MM is raising a new fund while UMM recently closed

Agreed, that level of difference in comp is negligible at your level, so wouldn't worry about it.

If the MM fund has as good of brand equity as you've said and seems like a better culture fit, while also being more aligned with what you're interested in, then I would suggest going for that.

Would just make sure the MM fund will be actively investing because I think having the chance to work on new investments is important, both for your experience and if you move back after an MBA. I know a few guys who have gone to funds that sound quite similar to the UMM fund you mentioned -- i.e. sector focused (and not a sector they were very excited about) and banking-like culture, they came out of it pretty jaded and have basically left the industry at this point.

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  • Analyst 1 in PE - LBOs
Jun 26, 2020 - 4:58pm

Is the MM fund only focused on software, or tech more broadly? Ik lots of people in software PE get bored after a while because all deals end up being incredibly similar, focused on the same repetitive metrics (recurring revenue, churn, LTV/CAC), etc. On the other hand, general tech PE allows for more interesting deals and business models.

Also is this $1B fund their first/second fund? Or is it a firm that has been around for a while and is just focused on remaining a MM firm? Some ex-players in the pure MM space have seen massive spikes in fundraising recently (Clearlake, Siris, to name a few), so it could be interesting if this MM firm's upcoming fund is on path to follow a similar growth trajectory.

  • Intern in IB - Cov
Jun 26, 2020 - 6:15pm

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