Weighing exit from LMM PC/PE

Hi, wanted to get an understanding if this is a good opportunity worth leaving for. I’m currently at a LMM PC/PE shop in a T3 city. Wear a lot of hats but my team is very hands on with our portfolio. Comp is well below market cash and all-in (less of the comp is cash than advertised before joining), with year 1 cash having landed in the 170-190k range, despite getting worked at different points of the year. Have some carry and deferred bonus subject to exploitative vesting, and have been here a bit over a year. I feel I’m ready to move on as this place treats people poorly and I’m not motivated by the work and do not believe in LMM PC generally. 

While I have not been applying for roles, I was reached out to for a role at a national/regional developer/home builder doing land acquisitions and strategic projects in the same city I currently live in. Comp is likely to land in the 150-160k + 50% bonus range, with good lifestyle based on speaking with the team. If I perform, it is being very heavily pushed as leadership track/leadership adjacent, and all of the similar recent hires have some form of MBB/IB previous background (albeit less YOE than me)

Is this a market/decent exit? I have 5-7 YOE, but only 3-4 of that is in “high finance” first at a firm in a relevant to the new role asset class and now in a traditional corporate LMM PE/PC crossover shop. 

4 Comments
 

Based on the most helpful WSO content, here’s how you might evaluate this opportunity:

  1. Compensation Comparison:

    • Your current role offers $170-190k cash with some carry and deferred bonuses, but the vesting terms seem exploitative.
    • The new role offers $150-160k base + 50% bonus, which could bring total comp to $225-240k. While the base is slightly lower, the bonus structure and lifestyle improvements could make this a more attractive package overall.
  2. Lifestyle and Work Environment:

    • Your current role involves being overworked and poorly treated, which is a significant downside.
    • The new role promises a better lifestyle and a more supportive team environment, which could lead to greater job satisfaction and work-life balance.
  3. Career Trajectory:

    • The new role is being positioned as leadership-track or leadership-adjacent, which aligns with your experience and could offer long-term growth.
    • The fact that similar hires have MBB/IB backgrounds suggests the company values high-caliber talent and could provide a strong platform for career advancement.
  4. Relevance to Your Background:

    • Your experience in a relevant asset class and LMM PE/PC crossover aligns well with the land acquisitions and strategic projects focus of the new role.
    • Transitioning to a developer/home builder could diversify your skill set and open doors to other opportunities in real estate or corporate strategy.
  5. Market Perception:

    • Exiting LMM PE/PC for a developer/home builder is not a traditional path, but it’s not uncommon for professionals to pivot into roles with better lifestyle and leadership potential.
    • The move could be seen as strategic, especially if the new role offers clear growth opportunities and aligns with your long-term goals.

Final Thoughts:

This opportunity seems like a solid exit, especially given your dissatisfaction with your current role. The improved lifestyle, leadership potential, and competitive comp (when factoring in bonus) make it worth serious consideration. If the new role aligns with your interests and long-term goals, it could be a smart move.

Sources: Quitting time - views on how to leave your job, Employment Dilemma, MBB -> PE Operating Group, Why the focus on exit opps?, Likely Getting Pushed Out at End of 2 Years (LMM Buyout)

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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