LMM IB Exits?
Title. Curious if there are any exits at all to PE, PC, or mainly to MM/UMM IB?
Title. Curious if there are any exits at all to PE, PC, or mainly to MM/UMM IB?
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Exits from LMM (Lower Middle Market) IB to PE, PC, or MM/UMM IB are indeed possible, though they may vary in frequency and type depending on the firm and individual circumstances. Here's what you need to know:
Private Equity (PE):
Portfolio Companies (PC):
MM/UMM IB:
In summary, while LMM IB may not always provide the same prestige or direct access to top-tier exits as BB or EB banks, it still offers solid opportunities for those aiming to transition to PE, portfolio companies, or larger IB platforms.
Sources: Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, Why do MM IB shops get trashed on so much?, Non MF/UMM PE exit opps: Growth Equity / VC / CorpDev / LMM PE / Private Credit / PE FoF / IB A2A
Exits aren't materially different, its just the caliber. LMM/Regional PE, go upmarket to a low/mid-tier MM bank. Go corporate, likely at a smaller company not an F500 if you want to achieve an "equivalent" title and not downgrade that. But what I've learned is the world is your oyster.
Appriciate it. Looking to recruit for PE eventually, and am also recruiting upmarket for FT but I'm curious, is there really a name brand difference between getting great deal flow/experience from a LMM bank compared to a low/mid-tier MM bank?
Or is it more so how you interview regardless of experience on deals and brand name? (for LMM/regional PE)
I’ve seen people move from LMM to Mainsail & Serent Capital on the investment teams. I think it depends on the industry group you are in to be honest.
From my understanding deal size plays a big portion. In the sense that LMM deals are less modeling intensive, less complex, more owner-operated, less streamlined internally. Boutiques also don't really have a lot of industry resources either not are they really that important for deals that size so you end up doing things like calling people, for example, to find info/market data. Which is actually why weirdly it compliments LMM PE very well cuz they do the same thing on the buyside. Its not really like LMM PE is "worse" than MF PE its more like comparing a coupe to a truck. There are some elite af random LMM firms no one has heard of all the time. I'm still discovering them.
Is going from LMM to a true MM where the deal size/associated complexity becomes relevant enough for LMM PE? At what EV do the transaction experiences on your resume become meaningful for recruiting/working in PE?
Also for reference when I say LMM think Stout/Oppenheimer/Stifel
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