Hello everyone,

I'm at a small PE Shop (~$50M in AUM) in LatAm and recently got an offer from Mckinsey, TC is around the same (~$90k/yr with bonus). Fund will probably hover around 27% IRR and will open up raising a larger fund. Should I seriously consider Mck and try to make partner or stick with the fund and see how it plays out?

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Don’t come to consulting if you want to do PE if you are already there. Go to B-School then target the bigger funds

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Totally agree. McK doesn’t make sense. The fact that you have an offer tells me you can make that inroads again if you wanted to. Go to bschool, target a bigger shop, if that doesn’t work out, you can always pivot to MBB.

I 100% vote for McKinsey. MBB is a top target for PE funds, and McKinsey will allow you to transition to a far more desirable PE fund in 1-2 years. You would likely have a large boost to your income compared to staying at your current fund.

You will almost certainly not make partner at McKinsey, statistically speaking.

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Why statistically not make partner?

If the main reason you’d move to Mck is to chase partner, then I’d stick with the fund.

Not sure what % of McKinsey analysts (assumption based on total comp) make partner, but it has to be extremely low.

If there are other reasons (experience, new skill sets, etc.) then it may be worth jumping.

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I would stay and invest in that 27% IRR machine as part of the GP if you can...Joining Mck will only be making partners rich for very minimal upside.

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Depends on what role you are joining McK as... Associate? Integrative or expert track?

helpful

Associate

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Depends - if ur fund can double / 3x the fund then economics may be in your favor given eRly position

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Carry at that level will likely be very low.

You can prob go from McK to another PE shop

What would be more fun?

I think PE would definitely be more fun, but I like both

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Stay in the fund. Mck partners are middle class compared to the buyside

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