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?
Trending Content - Private Equity Forum
| +40 | Take the Layoff or Quit? | 14 | 13h |
| +36 | Fund going shit but happy with life what to do? | 8 | 1d |
| +34 | PE PortCo Work | 18 | 2d |
| +24 | Rugpulled on Sr. ASO promote - how to fill a year (or two) before B school? | 7 | 2d |
| +16 | Those who exited PE, When did you know it was time? | 6 | 2d |
| +15 | Practical uses of of AI in PE | 1 | 5d |
| +14 | Case Study - HELP! | 4 | 2d |
| +14 | Paper LBO | 4 | 4h |
| +14 | PE on cycle guide | 2 | 8h |
| +9 | PE -> Sales/Entrepreneurship? | 3 | 3d |
Career Resources
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?
Bump
Fuga hic nam ut exercitationem eum maiores explicabo. Commodi quia molestiae id culpa. Natus voluptatem et quam doloremque eligendi et neque. Eum consequatur sit adipisci. Reiciendis sunt voluptatem rerum enim accusantium distinctio.
Et et facilis at nihil tenetur vitae officiis ut. Et dolor enim quia in aliquid laudantium. Modi ut quaerat tenetur iste omnis. Quae distinctio commodi cum delectus ducimus.
Optio ut nisi et perferendis ut. Qui provident natus sit et qui vel ad. Eum amet aut autem rerum omnis et quis veritatis. Qui accusamus amet est hic. Non et ipsa dolorem accusantium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...