LMM Buyout Comp Question
Offer at LMM buyout fund in HCOL city. Comp is ~$220 for A1. Would I be wasting earning potential in my youth here?
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Based on the most helpful WSO content, your compensation of $220K all-in as a first-year associate at an LMM fund in a high-cost-of-living (HCOL) city is within a reasonable range but slightly below what you might see at larger funds or in other sectors like investment banking. Here's a breakdown to help you evaluate:
Compensation Context:
Earning Potential vs. Lifestyle:
Long-Term Considerations:
Ultimately, whether it's "worth the grind" depends on your personal priorities—maximizing earnings, gaining experience, or achieving a better work-life balance. If you're feeling underpaid or undervalued, it might be worth exploring other options or negotiating for additional benefits like carry or co-invest opportunities.
Sources: Anyone regret LMM/MM?, Is it dumb to exit to LMM PE rather than starting in bigger (MF/UMM) opportunities first?, Anyone regret LMM/MM?, https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, LMM is underrated
Don’t take it unless you are 150% sure that’s additive to your career. Currently at a fund that pays that in NYC. All mid levels are hired laterally so no sight to growing internally either. Closed 1 platform but now doing endless portco reporting work given how bad the portco infrastructure is. Lateral market is atrocious and even more so without the name brand/pedigree of a larger firm. In hindsight I should’ve stayed in IB and made more money had I known this was the outcome
Shouldn’t be incredibly tough to return to IB, no? Considering the same boomerang in a year or two
Buyout PE helps the resume a solid amount no? Assume you could go back to banking, corp dev or other investing roles easier than before the experience?
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