Acquisitions VP Salary - Sourcing/Closing
How much is an acquisitions VP's salary based on sourcing/closing deals? I would assume it could be significantly higher than base depending on the volume of deals, but could anyone give a range? Would it be based on a percentage of purchase price or do most firms compensate a VP based on a flat fee per acquisition?
Hello, some companies give percentage of purchase price while some give flat rate for every acquisitions.
thnks regards........
From what I've seen in REIT and some REPE firms you are looking at 120K-200K with 20-50% bonus. Some REPE firms obviously pay more with bonuses as high as 100% but that's not the norm.
I posted this in a couple of other posts:
http://celassociates.com/prime/wp-content/uploads/2012/04/CELAssociates…
I know some places, the VP who sources would get a piece of the promote, not sure about fees on transaction volume themselves though
Perhaps the range is too great to formulate a meaningful consensus (asset type/class, geographic region, small vs large shop, deal closure time frames, development vs straight acquisition and disposition, etc), but what would be a fair income spectrum for a VP who goes get a piece of the promote structure?
1 million dollars
A million dollars isn't a lot of money these days, Virtucon makes over $100 billion dollars a year...
This is an underated comment
Really? damn....Oaktree's baller
All appreciated answers for laughs and giggles aside, does any have a sincere response to what would be a fair income rangefor a VP who goes get a piece of the promote structure?
It's going to be different from firm to firm and whether you are talking about fund/REIT/REPE/private investor, etc. I work for a private investor with $7B in AUM. Capital is coming primarily from the principals with some JV equity partners on occasion. These guys never give pieces of equity or income participation to the acquisitions guys. Acquisitions guys negotiate a bonus paid at closing as a Buyer Cost depending on deal size and level of participation. Generally, that is paid only to one guy who was the lead. Other members of the team will see their annual bonus fluctuate based on deal flow, but where I work, that annual bonus is not too big (20-25% of base). My situation may or may not be typical of these family-run operations, though. I have seen the lead acquisitions guys get $75-$100k though, on deal size of $150-300M.
Fuck that. Why would you want your acquisitions staff basically just acting like brokers.
If it's a shop where you get promote at the VP level then the all in comp will be lower for obvious reasons. If you back into what you can possibly make on the promote then you figure out what the all in comp should be versus institutional work. Where you'd probably be all in at 225 to 300 with large variance due to locations. Its cheap to live in Dallas versus San Fran or NYC. So the non answer is it depends.
@"prospie" - Peer of mine took $350k home last year all in as a VP and it was a very good year.
at Oaktree?
VPs arent very high in the ladder (Analyst -> Associate -> VP ) and this is RE we are talking about not vanilla PE (where maybe they are in fact closer to 7 figs, but I wouldn't know).
Corporate PE VPs aren’t at 7 figures. It’s likely higher but not that much higher
Maybe at Apollo, who supposedly pay their associates $350k. But I can’t see it more than doubling between Associate and VP
Yes @"JimboUSC"
Honestly, someone who would know and someone who I trust had told me that oaktree was offering 300 all-in pre-MBA. 350k for a VP at a place like that or BX seems awfully low, but whatever, guess I will just shut up.
I would wager that no VP-level acquisitions guys anywhere make $1M+. What others have said sounds abut right, $250-300k all in.
Sounds like Oaktree reg PE not RE unit
It is depends on the amount of the deal If the deal is big their part is more. Mostly acquisition VP's charge some percentage of the deal.
My guess is $150K base with similar bonus.
Would you say that comp (350 for VP) at Oaktree is similar to other PERE shop like BX, Starwood, etc.?
The comp figures thrown around in this thread sound very low.
At my shop in a Tier I city (LA/SF/NYC/BOS) Associates pull $200-300k all-in depending on seniority (1YR, 2YR, 3YR). Base for a VP is typically ~$250k base plus bonus of ~100% of base plus points...
What shop so I can apply?
I’m guessing not NYC otherwise you’d just say NYC. So Walton Street, Oaktree, Rockpoint? I don’t know many shops in SF just because I don’t have interest in the market
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