LMM Banking... Lets have this conversation
Lets talk.
For all my fellow interns who made a great impression in the LMM but were never able to get into UMM or BB out of college. Did you take the job? Were you happy with that decision? I am talking to you, the scrappy very non-target kid with 0 guidance but a ton of heart, hunger, and grit.
I found that in my MM and EB superdays (late FT recruiting) I just choked, there was never material I didn't know (only blanked on, looked back, and felt very stupid).
Is doing the time at an LMM shop FT post-grad worth it, if your end goal is to lateral into a MM associate role? Or is it better to just call it quits and pack the bags?
Bump
what EBs were recruiting late this cycle?
Based on the most helpful WSO content, starting at an LMM shop post-grad can absolutely be worth it, especially if you have the grit and determination to make the most of the opportunity. Here’s what you need to know:
LMM Experience Can Be Valuable: While LMM firms may not have the prestige of UMM or BB, they often provide a more hands-on experience. You’ll likely get exposure to end-to-end deal processes, including sourcing, execution, and post-deal management. This can give you a well-rounded skill set that’s highly transferable.
Path to Lateral Moves: You’re not permanently locked out of MM or larger funds. While it may be more challenging to lateral into a UMM or BB role, it’s not impossible. Many professionals have successfully transitioned by networking, excelling in their roles, and demonstrating their value.
Focus on Long-Term Goals: If your ultimate goal is to move into a MM associate role, starting at an LMM can be a stepping stone. Use the time to build your resume, gain deal experience, and network aggressively. The skills and relationships you develop can open doors down the line.
Lifestyle and Growth: LMM roles often come with a better work-life balance compared to MFs or UMMs, though this varies by firm. Additionally, some LMM firms promote from within, offering a clear path to senior roles if you perform well.
Don’t Underestimate the Opportunity: Many professionals in LMM and MM have built highly successful careers, earning millions in carried interest and enjoying a more balanced lifestyle. It’s not about where you start but how you leverage the opportunity.
If you’re willing to put in the work, an LMM role can be a solid foundation for your career. It’s better to take the opportunity and make the most of it rather than “packing the bags.” Your hunger and grit will serve you well in this space.
Sources: Some Observations from an MD, Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, Anyone regret LMM/MM?, Anyone regret LMM/MM?, LMM is underrated
I got UMM, BB and LMM.
Chose UMM over BB for SA and chose LMM for FT over UMM
Lateraling is possible but tough in this current market its not 2021. Every single person ik tht went from LMM to BB / EB had friends in the group
My rationale for taking LMM was way chill and more sustainable. I dint want to go PE nor burnout after 2 years of intense analyst stint just to take a 30% haircut on salary and take on a corp dev job. Sm LMM places provide significant comp upside which is what convinced me
I am in LMM M&A ($100m-300m EV) but came from a target so as you can imagine I did initially want to do BB/EB. I always choked in SD’s for the better-known banks usually because I was generally quite uptight in the interviews and felt the pressure.
My 2 cents on LMM:
1. There are always MM banks that recruit from LMM - RJ, Piper Sandler, Baird, WB, HL etc. so I have never had issue with headhunters reaching out for these kind of firms
2. Some people don’t realise they are probably better suited to a smaller firm and more responsibility - this is something I didn’t appreciate initially but I am definitely the type that would thrive more in such environment and is in part why I haven’t left yet as I know it would take some time for me to adjust to the environment of a larger organisation - bureaucracy is a key theme here
3. If you are in a lean team, there is legitimate possibility that your bonus will be larger than the street normal - this varies by bank and how generous they are
4. In LMM I would always recommend going to a bank that has a specific niche and is strong in it. IMO - there is no point being in LMM if you aren’t getting more exposure to live deals than you otherwise would
I went from BB analyst to LMM assoc at a tiny firm, and it was great. I eventually left to start a company, but if I hadn't I'd probably still be there. Analysts were paid fairly and worked 60 hours, but not top level comp. Once I became a VP the comp became very good due to their model. LMM can be good, but it has to be at the right firm. We did almost no pitching due to partner relationships...that was major. Lots of boutique banks pitch non-stop. If you can find one where that's not an issue, life can be great. I'd recommend anyone pursuing this path to ask about it during your process. If it's pitch heavy, run away. If you are truly experts in a couple of niche verticals and viewed as a go to with no pitching, it's pretty good.
Out of school I didn’t have options to go to a big brand name MM and certainly no BB…that left me with a few options and I choose to join a true LMM firm to at least get a foot in the door. After a year at that firm (think 25-150M EV deals) I started recruiting and got lateral offers from a bunch of firms that would have insta trashed my resume coming out of school (non-target, 3.5 gpa). It ended up being a fantastic way to get one of the jobs I actually wanted. If you can leverage that LMM experience and get some reps while studying for BB interviews you will be fine.
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