In REPE right now, and looking to make the jump onto the operator side (primarily multifamily).
Would be great to get some data points or what you think is market for an SVP with 10-15 years experience (heading acquisitions) in a HCOL market (NYC/LA).
Looking at pretty big operators, not small shops. I understand there’s a cash and carry component, but I have no idea what the splits look like or what market is. Thanks in advance.
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Why are you wanting to make the move?
Several reasons, including being closer to the asset, a day-to-day I enjoy more (sourcing direct vs filtering) etc.
Makes sense… are you expecting to take a hit on comp?
Probably 250-300 base for LA. NYC no idea. Bonus completely depends. Can't comment there
Thank you for this. Seems very low for someone 10-15 years in. I’m assuming that you mean cash bonus. In that case I’ve seen anywhere from 50% to 125% of base, so cash comp could be upwards of $500k?
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I would expect cash compensation of $450k-$600K. For the most part, cash comp will top out at this level unless you are in the c suite. Above and beyond this, you could expect a cut of the fee income or promotes depending on how the firm is structured.
Was at similar operator similar to shop you mentioned at VP level. I’d say 250-300k base plus 50-100+% bonus. And additional carry interest. It really depends on the shop’s capital structure and how much volume you can produce. But at the minimum should be the comps I mentioned.
Thanks for this. Just so I understand, you are saying $375k - $600k cash (base+bonus) plus carry? This would be closer in line to what I would be expecting.
So assuming a 1/1/1 structure for base/bonus/carry… that’s $750k annually. That seems high no?
That’s correct those are cash comps only. that’s my understanding.
Take a look at the Rhodes Associates compensation report. They have a section for operators now. Rhodes is NYC based so it probably leans to the high side, but even if you're in LA it shouldn't be that dramatic of a discount.
The 2022 report shows SVP / Director at 10 - 15 years of experience and says $250k - $350k salary + $250k - $450k bonus for total comp of $500k - $800k. Given this was in 2022, I'm guessing these were 2021 related bonuses, so I would probably expect more like a 100% bonus target for total comp of $500k - $700k. That said, obviously some smaller operator just getting on their feet isn't going to have this kind of dough, so apply it to your own situation and whether that sounds realistic given the groups size you're talking to. You mentioned they were large so I'm guessing it does.
Man this is super helpful. Thanks.
This is the latest report I’m seeing from 2022. I assume there’s nothing newer: https://rhodesassociates.com/wp-content/uploads/2023/01/Compensation-Be…
“Owner/developer, acquisitions” is showing 500k-800k total cash comp, plus carry. Sounds about right. Also, yes I i’m targeting established/institutional quality GPs.
Struggling to believe it's this simple for someone with 15 years experience moving to an operator. At this level, one would presumably be a partner/senior partner and >50% of comp would be based on promote and participation. Maybe Hines or Trammel or Tishman have a model in which a majority of comp is "fixed" (cash + bonus) but from my experience senior guys at operators are highly incentive based.
$500k - $600k cash comp plus promote $2m - $3m per fund. I am in SoCal / 12 YOE.
Fund life? How is promote paid out?
8 years with extensions - raise a new fund roughly every 3 years. I got lucky and was given promote in funds that were before my time at the firm as well.
There is a delineation warranted here: operators that have a fund and operators that are sourcing the capital stack on a deal-by-deal basis are compensated differently. Pay at BKM, KBS, etc. is much different than pay at Presidio Bay, Hines (outside their IM business), etc. Just something to keep in mind.
Makes sense. What would you say compensation bands are for each? Unfortunately Rhodes doesn’t delineate
can you guys give some examples of operators being discussed in this thread? what firms fit in that bucket / what makes one large or small.
My peers are $200-250K base with bonus between 100k-1MM/yr depending on region performance and 0-10MM a year in promote depending on monetization of assets. Basically if you're a good business person and investor you're on the upper end, if the market sucks and you suck you make nothing worth calling home about.
0-10m a year in promote? What are the fund sizes?
What does the work on a day-to-day basis look like for that salary and bonus? What would one's background have to look like realistically to get such a position?
also curious. As someone breaking into the industry, I'm intrigued by how much of that success is attributed to having a keen eye for investments, vs having a larger broker network (with the resources to close quickly). Obviously it's not just one variable vs the other
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