LMM Comp Input
Currently working at a lower middle market PE fund (think $300M AUM), generalist. Recently was promoted after ~2.5 years from Analyst to Associate and looking for overall input as to whether I should start looking for other firms. Some background -
* Started straight out of college at a very low base and bonus ~30%
* Bumped to about $80k as a second year analyst, still ~30% bonus
* After ~2.5 year, moved to associate and moved to $90k base, doubt all in is above $120k
I know this is significantly below market from a comp perspective, but the exposure has been great working on all aspects on deals during closing and post-close, including sitting on boards as a member or observer, depending on portco. A couple negatives is that it is not a well-known fund, we only close ~2 deals a year, relatively long hours, and higher level people are also not happy about comp (senior associates, VPs, Principals, etc).
Thoughts as to if I should start looking or if I am being too greedy on comp?
Region?
Bay Area, CA
A few thoughts:
I would not view this as a long-term position. Since you’re getting good experience, you’ll need to make the call about whether you’re quite ready to cut the cord, but with a few deals closed and strategic PortCo work you’ll be in a great place for lateral recruitment.
Personally, I’d beef up the resume and start putting out feelers - don’t quit without anything lined up, but start positioning yourself to jump when you find the right opportunity.
Awesome input. Making me feel alright for sticking through it this long. Sounds like I've seen the turn card with the ASO comp and its time to look elsewhere.
Way too low for a Bay Area Associate, even if you're at a tiny fund. I think the lowest you could accept as an Associate 1 would be high 100s, and given geo, I'd think you need to find a way to something with a 2 in front of it.
Start looking for a new job immediately. Sounds like the experience has been good, but it's a great time for a lateral move given how hot the market is.
Awesome, thanks for the feedback and ranges I should be looking for. Are you saying with a 2 base or all in?
To give you a comp figure. I am at a Tier 2 location, with a latest fund size of $400M+. Comp is low 200s, hours so far have been 50 hrs with no weekend work. probably go up to 70-80 when live deals start ramping up
Wow, thats an awesome spot to be. Good comp, nice W/L!
How many investment professionals do you have to split up the fees between? If you have a lot of people there, might be the only way the fund can operate. Otherwise if you guys are pretty lean could just be the fund manager being too stingy
About 10, so you can assume ~$500k management fee per employee
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