Tips on how to learn all these niche PE terms like carry, UMM, PE Ops etc and just understand the industry overall?

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likefunny

This kids making partner next cycle

likefunny

Tough crowd. Wall Street Oasis is a great resource. Your questions have likely already been asked on there, then you can go down the rabbit hole of looking up anything else that comes up as you read through.

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Carry is the amount of extra fees earned by the fund based on performance. A common structure would be 20% of all profits in excess of a hurdle rate would be considered carry. The hurdle rate might be 7% or so but it all depends on fund

UMM is upper middle market. I’m not sure what the cut off is but I’d think about it as portcos with revenue between 1 and 5 billion

PE Ops: second class citizens at funds relative to the deal teams

I don’t know if there’s a repository of all these terms but you’ll pick em up over time

likehelpfulfunny

Examples: Sycamore, KKR capstone, TSCP, Platinum Equity. Please lmk if you think i’m wrong on that, I’m also trying to learn.

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I get it, you’re trying to get a cheat sheet of sorts but frankly, you’re going about it the wrong way. It’s the same advice I give to folks who want to learn finance - there is no shortcut. Sure, you can find a PDF with a glossary of common terms in PE/VC but it doesn’t help much when you don’t have a basic idea of the fundamentals. In the example shared above, I’m going to assume you probably don’t even know what a hurdle rate is so understanding carry becomes a bit more complex.

Start reading as much as you can about the industry, including books. Listen to podcasts. While reading a wsj article or a podcast, google terms you don’t know. It’s not rocket science but it’s also not something you’re going to learn passively by reading a PDF of finance terms.

likehelpful

For context, I have a CFA so I’m familiar with many things eg the very common 2/20 split (AUM/Carried Interest), hurdle rate etc. Going through the Bowl, I just felt there was a lot of terms I didn’t know specific to PE recruiting (classes of firms - MF, UMM / salary components etc). But thanks, it’s starting to make a bit more sense.

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Bro just spend time on fishbowl once a day and you’ll be solid lol

likefunny

Fake it till you make it.

likefunny

One word: Memes

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Are you asking because you are wanting to interview with PE firms?

Yes, potentially.

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