Compensation structure for BD
Would love to hear thoughts on how comp plans are typically structured for BD roles within PE. I’m specifically interviewing for a VP level role but curious about any level. TIA.
I've seen a few ways: 1) base + discretionary year-end bonus, similar to how a banker is comp'd, 2) base + metrics-driven bonus, where you get quarterly/year-end bonus based on some metric/combination of metrics, e.g., number of NDAs you got signed, IOIs issued on your deals, LOIs issued on your deals, closed deals, and 3) base + bonuses as your deals close. At VP I imagine you'd get offered some type of carry participation or a quick path to it. I've also heard of some other weird structures where your comp was tied to the amount of equity deployed in a year for your deals.
Hope that's helpful. Happy to connect via PM if you'd like. Love talking shop re: BD.
Super helpful! Thank you.
All of those make sense to me, helpful to see it broken out.
Could I PM you regarding a BD role I am looking at on the buyside? Fairly unique opportunity so would love to get your input
Absolutely, PMing you now.
Similar situation here - been networking and in a process for a transition from banking into PE BD later this summer, would appreciate your thoughts via PM!
Is your role going to be more banker coverage or direct sourcing? VP should get a small amount of carry.
50/50 direct sourcing and covering IB
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