Acquisitions Fee
I wanted to know what was the usual breakdown in the industry on acq fees. Our company is structured in the way that they charge LP 1% of purchase price and from that 1% as an analyst I get 1% of the 1%. This is for a multifamily property.
So for example acq deal price $40M, $400,000 goes to the GP and $4000 goes to me the analyst. Is this a normal percentage or is it higher for analysts? I am also curious as to what break downs are at Associate level an on.
Trying to wrap my head around fees and compensation and see if I should ask for a higher percentage. Anything helps!
Seems more of what an associate would get. That seems like a heavy bonus of an analyst.
Real estate doesn’t usually pay great at sponsor shops until you get more experience and climb up the ranks.
JV shops tend to pay more at the analyst level than sponsors do
I get 50 bps - Senior Analyst at GP. Associates get 100 bps.
And to your both posts, how many deals are you guys executing? Also if you don’t mind me asking what is your base and what market do you work in? What is the AUM of the companies you work for. I am just trying to get a sense of my compensation structure relative to what it is in CRE.
I do work in a JV shop btw
I get paid $0 in fees. So good for you to be getting them early. With that said, I have an incredibly high base for a developer which makes up for no fee income.
So then how do bonuses work for firms that pay low in acq fees or none at all?
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