Going to HBS in the fall from a New Mountain / Berkshire / LGP type and on one hand I could pedal to the floor for HF or another UMM/MF but on the other hand there’s some nice regional middle market PE shops in states like FL or VA or CO or WA where I could crush it and wouldn’t mind just living my life and not worrying so much about my career and would still make okay money. Thoughts?
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Personal choice I can't answer for you but I would share a few thoughts:
Second both of these points. I'm a recent grad at a similar program and it's amazing the number of people day one swearing they'll never go back to big PE only to succumb to the peer pressure that hits you like a ton of bricks the minute you step on campus. Prestige is a hell of a drug
This is exactly what I'm worried about but there are also merits to it e.g., I could go upmarket in my sector to mega cap or public which I am sure would bring an additional skillset which would make me a better investor when I do decide to go someplace a little sleeper. Thoughts? It's almost like delayed gratification... again... and I'm starting to think about when I stop delaying gratification and just chill.
+1 on 2nd point. You really have to do your DD on these smaller shops. Dynamics really matter and at smaller shops they can be grossly managed eg. you can have as big of a deal funnel/rolodex if you want, but if IC is really just one guy saying Y/N, and he has an affinity for saying no or making people do ridiculous circular exercises - that is not a place you want to be
Good number of folks at GSB/HBS make this choice proactively over the course of the MBA - because it also happens to be the two years where most people transition from being single or loosely-attached to being engaged/married with kids in the near-term horizon.
Imagine being married with kids in near term horizon at 27 kms
Lol you sound like a huge loser
There is literally nothing more prestigious than being a big shot at a large cap fund. It’s amazing being surrounded by people with such razor sharp thinking. You have to watch your every word to ensure clarity of logic. It builds you as a person
I get what you’re saying here but frankly those type of environments can be extremely exhausting if you’re not the type of person that likes to ponder every single word. In my experience, it creates an environment of CYA vs an entrepreneurial culture.
This is a troll post right?
I want to stuff you in a locker
i'd give him a swirlie and put his underwear over his head
I literally built my entire career in LMM PE. I don’t know where this concept came from in which bigger PE funds = smarter people, but it hasn’t been my experience. Nearly everyone I worked with in the US went to HBS. It felt like half of them literally had photographic memories. They were also incredibly meticulous and knowledgeable about everything ranging from politics to travel to culture to sports. Just because these people didn’t all go to work for large cap funds doesn’t mean they aren’t razor sharp. And honestly, the few people I have negotiated against at MFs had some really spotty logic and lacked deep understanding of accounting (in the case of one negotiation). Just like in LMM PE, you’ll encounter a range of people at MFs and UMM funds with their own accomplishments and shortcomings.
To the OP — on average, you are very likely to make less money at a regional MM PE fund as opposed to a large cap fund. There are exceptions of course, but on average, you’ll make more throughout your career at a large fund. However, it is very, very possible to have a reasonable work-life balance at a MM or LMM fund. In fact, I would even argue that the thing that holds most people back from achieving WLB is actually themselves and their own mentality/drive as opposed to any sort of corporate policy. As mentioned above, this becomes increasingly meaningful once you reach your 30s and begin to prioritize things such as starting a family. Even being single, my priorities changed in my 30s. While it is indeed easier to go from a large cap fund to a smaller fund, it is not as simple as people often state on this forum. All of your banking connections and service provider relationships are not valid in the MM. Furthermore, the mentality, approach to investing, availability of information, and a plethora of other things are all very, very different. So you really want to make sure you make the right choice during your MBA as that will be the key inflection point in your career where it starts becoming increasingly difficult to change paths.
just really couldn't echo this enough
Have you ever considered reaching out to a career counselor or mentor for advice? They could offer some valuable insights and help you think through your options.
Who cares how much money other people have? Care about if you feel like you'll have enough money and if you'll get to live the kind of life you want to live. If people judge you for working in MM PE instead of MF PE, they sound like people who are really no fun to hang out with. Live your life and don't worry about other people.
Money past a certain point is pointless. Optimize for culture.
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