LMM PE Compensation
Hi everyone, I am trying to understand what market comp is for LMM PE roles these days. Currently a 2nd year Associate at a ~15 person shop (fundless sponsor) in a T2 city going into the office 3-4 days per week. Hours vary but typically can expect 11-14 hour days plus some weekend work. My base is $90k with a highly variable bonus structure (bonus was negligible this year due to inactivity) and minimal benefits. I am fine with grinding it out for the sake experience/learning, but there comes a point where it doesn’t make sense. I really enjoy working alongside my team and would prefer not to leave but I am having a hard time seeing a path to upside lately. Thank you everyone in advance for any additional input.
What does negligible mean here? You should leave and find a new job asap. Bankers even in t2 cities probably cleared 150k+ this year.
I was sugarcoating it…by negligible I mean $5K. I appreciate the blunt feedback, I think you are right.
Ouch man. Sorry about that bonus. I would get out asap. FP&A is paying more than that at the same level
Good on you for coming to this realization. You're definitely getting screwed on comp. You can find other lean shops that will give you a fantastic learning experience but pay you double, if not more.
I'm a proponent of taking a comp discount to market for the sake of accelerated learning, but at a certain point, such as in your case, it's just exploitive.
Not sure what fundless sponsor pay is like, but the lowest paying fund I know is $185 all in first first year associate and that’s for a 200mm fund in a T1/T2 city. I’m receiving $200k all in at a 500mm fund in a T3 city and I think most people at my fund size are in the 200-240 range
Currently $280 at a $500mm in a t2 city. You need to lateral asap
do you have carry/co-investment opportunities? how many people are at your fund, what's your fund's typical check size/target revenue or ebitda. currently interviewing for mm and lmm shops and want to have a benchmark for comp. thanks
Co-invest: yes
Carry: 75bps
Size: 5-10ppl
EBITDA: $10mm-$20mm+ (have gone larger with lp co-invest being an option to size up)
Currently 100k/100k base/bonus in a T3 city, ~$500M latest fund. No coinvest, no carry. Feels a little light TBH
Slightly higher TC here but in NYC. In the same boat. Are you planning to lateral?
Good q, we have some personnel / strategy shifts going on in the background that might be interesting to ride out. I think I'm going to stay through a two-year, aim for senior associate, and lateral then if the package does not improve
Aso 1
115K base
115K bonus
Coinvest - Yes
Carry - No
Tier 2/3 city
Edit: Bonus number was wrong
what's your firm aum and typical/average fund size, # of people at firm, etc.?
Family office that exclusively does LMM PE, ~$150-$200mm in committed capital , 4 people including me, 50-60 hours extending up to 70+ during deals.
You are getting screwed. Lateral asap.
Aso 2: ~300k all in, 280k all in for Aso1 year. 700mm latest fund in Tier 2/3 city.
What’s your fund AUM?
about $1.5bn across 3 funds, so not sure if this would still be considered LMM given that context.
For your fund size and total AUM (+ Tier 2/3 city) think that is great comp, I would expect it to be ~50k lower on average
Sr Assoc 2/3 $450M AUM; raising ~$600-700M follow on fund 150 base / 250 bonus $3.5M DAW across latest and upcoming fund
Tier 2/3 city
how much of that discretionary bonus actually is paid out. 80%, 90%?
100%. Historically bonus has increased about $50k per year over the last 2/3 years.
Hell of a comp package, congrats mate
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