LMM - MM - MF

Can someone in short shed some light on what is consider LMM, MM and MF PE. Is there a actual dollar amount that separates one from the other? And, what is range of comp for both entry level analyst and associate?

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Comments (5)

Mar 13, 2019

GoBuySide recently went out a North American private equity report answering your questions, see if you can get your hands on it

Mar 14, 2019

My completely arbitrary range (buyout fund size, NOT AUM):

MF: 7.0Bn+ (Carlyle, Apollo, etc.)
UMM: 2.5Bn - 7.0Bn (Centerbridge, Golden Gate, etc.)
MM: 500mm - 2.5Bn (HIG, Harvest, etc.)
LMM: Sub-500mm

Mar 15, 2019

Think that I more or less agree with this. Probably would put UMM starting around $2bn rather than $2.5bn but that's splitting hairs

Most Helpful
Mar 18, 2019

HIG's most recent advantage fund (buyouts) is $3bn, so by that criteria it would be an UMM fund. I think AUM can be really misleading (HIG being a great example). They raise huge funds, but invest in $30mm to $300mm companies, which I would argue makes their investment style lower middle market if anything.

This classification is a little more nuanced than I think putting a hard and fast categorization on AUM. I would argue it has more to do with check size than most recent fund size as volume shops (HIG, Mariner, Cerberus) look like UMM/MM firms to someone that doesn't know a whole lot about their investment strategy, but definitely invest in the LMM.

"Rage, rage against the dying of the light."

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Mar 19, 2019