LMM GP Management
For those at LMM funds with under $1b in AUM, does your firm follow any specific management system like OKRs, EOS, etc?
How often do you receive feedback formally? How do you know if you're performing well? What is the cadence you meet with seniors and direct reports in? What quantitative numbers are you judged on?
If you were running the firm, what would you do differently and what elements would you keep and why?
I have found it odd that many PE LMM firms don't seem to be as tightly managed as some of their port cos. A little ironic of course :) Guessing it's because the founders treat it more as an art and don't have much interest in building a scalable machine that can be fed AUM
Joined a c. $2bn AUM LMM firm after finishing a MF analyst program. Management-wise I totally agree with you that it's managed nowhere near as tightly as the PortCos. There is only 1 formal feedback session per year, and no intermittent touch-points throughout the year. It's often hard to know if you're performing well and you constantly have to ask the senior team for feedback.
As far as the formal feedback session, it's an assessment of pros and cons but no quantitative metrics are evaluated (at least for me none were) and more about if the team feels you're actively pulling your weight / making a net positive contribution, which can be highly subjective.
If I was running the firm I'd say I would run it like my old MF where you have at least quarterly formal catch-ups with a manager, and monthly informal coffees with various senior team members to check on your general development. Annual goal-setting is also helpful, then at the end of the year there's a clear benchmark on which you can be evaluated. One element I think is nice at my current place is that junior members can submit anonymous feedback about senior members as well, and that's incorporated into their respective formal feedback session.
How do you run your firm / team? Any useful insights you think LMM GPs should be implementing?
I am at a smaller firm than this but this is spot on for how we are run.
Awesome, thank you. I don't think I have much meaningful insight since we're so small + ops focused.
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