Appropriate Comp structure
I need some help figuring out what my compensation should be. I’m 5–6 years out of undergrad and hold an MSRE. I have experience in acquisitions, capital markets, and asset management. Currently, I work for a private firm under the principal in acquisitions. My role focuses on sourcing deals, conducting full underwriting, managing deal due diligence, overseeing the debt process, and handling closings. I’m also somewhat involved in asset management and assist with various tasks the principal assigns.
Since it’s a small team, I handle most of the work myself as there are no associates or analyst. My VP title may be somewhat inflated due to the firm’s size (approximately $500 million AUM, both in assets and personnel). I’m curious to know what an appropriate compensation level would be for this position, as I want to ensure I’m being paid fairly.
Based on the most helpful WSO content, your compensation should reflect your broad responsibilities, experience, and the firm's size. Here's a breakdown of what might be appropriate:
Base Salary: For someone with 5–6 years of experience, an MSRE, and a VP title (even if inflated), a base salary in the range of $120,000–$150,000 would be reasonable, especially given your involvement in sourcing, underwriting, and managing deals.
Bonus: Bonuses in private firms can vary widely. A bonus of 50–100% of your base salary is common for someone in acquisitions with your level of responsibility. This would put your total bonus potential in the $60,000–$150,000 range.
Carry/Equity: Since you're heavily involved in sourcing and closing deals, you should aim for some form of carry or equity participation. While smaller firms may not offer this immediately, a 2–5% carry on deals you lead or a share in the firm's overall performance would align with industry standards.
Other Benefits: Ensure you have a competitive benefits package, including 401(k) matching, health insurance, and possibly a signing bonus or relocation assistance if applicable.
For context, here are some relevant data points from WSO threads: - A Senior Associate in acquisitions at a $10B+ AUM firm on the West Coast reported $115,000 base + 50–75% bonus. - An Associate VP with 6 years of experience in NYC reported $150,000 base + 50–100% bonus + 5% promote, pulling in $275,000–400,000 in strong years. - A VP in Asia at a $10B+ REPE firm reported $300,000 base + $150,000–450,000 bonus.
Given your firm's smaller size ($500M AUM), your compensation might lean toward the lower end of these ranges, but you should still push for a competitive package that reflects your significant contributions.
Sources: What is your compensation in Real Estate Finance?, What is your compensation in Real Estate Finance?, REPE compensation, What is reasonable comp for an Associate at a Fundless Sponsor doing deals at $50m-$500m+ EV?, https://www.wallstreetoasis.com/forum/real-estate/small-shop-compensation?customgpt=1
We have almost the exact same role in the exact same sized company and both have an MSRE.
My comp: $150 + $50 + 2% carry in two funds (~$50/year)
Wanna chat on the phone?
Are you based in a HCOL area? How many years of experience?
No. Low to medium COL. 6 years. I think I’m getting paid really well. Would like more carry.
Also in similar position
Where are at from a comp perspective?
MCOL? HCOL?
Bump
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