LMM Principal Comp Benchmarking
Looking to benchmark LMM principal / director comp. Would appreciate structured responses similar to the below:
- Title: P1
- Fund Size: $300mm
- Geography: HCOL (LA/SF/NYC)
- Cash Comp: $500K
- Carry: $3mm DAW
- Years of PE Experience: 8-9 years
Based on the provided context, here is a structured response for benchmarking LMM Principal/Director compensation:
Title: Principal/Director
Fund Size: $300mm
Geography: HCOL (LA/SF/NYC)
Cash Comp: $500K
Carry: $3mm DAW (Deferred at Work)
Years of PE Experience: 8-9 years
For comparison, the average compensation for a Private Equity Principal across all geographies and fund sizes is approximately $676K (as per the September 2023 data). This includes both cash compensation and carry. However, specific compensation can vary significantly based on fund size, geography, and individual performance.
Sources: LMM PE compensation, recruiting and port co. work, LMM is underrated, How to tell the prestige of LMM or MM PE firms?, LMM/Regional PE Comp, Private Debt Compensation
Bumping... Any Principals in the LMM out there?
Not a principal yet, but I'm at a similar size fund, though MCOL location.
I'm close with one of our principals and he shared his economics with me. Similar DAW to you. $450k cash comp. Similar years of PE experience too.
Thanks for the datapoint, appreciate it!
would you mind elaborating on your typical hours/WLB at your current level and over the last 7 years?
45-50 when not on a deal, but with very frequent travel (at least every other week). Steady state was probably closer to 60/week (with less travel) in my Associate / Senior Associate years.
A signed deal will still blow up my life as much as ever, but that's partly self-imposed. At our size we don't exactly have a huge bench of juniors so I'll be up late turning pages in the memo or making changes in the model right alongside them. I'm more like the team captain who leads workouts than I am the coach barking orders from the sidelines (which is what I see from my peers at larger firms)
Thats above market cash comp for the fund size. Still PE buyouts? Hours?
it's a niche rollup strategy, the catch is that i cofounded the platform with one of the existing partners
my hours are ~50-70 with a high degree of autonomy
Not to rain on your parade but 500K is what senior associates at all EB’s make lol
Was PE really worth it if after 9 years you’re there?
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