Career Advice
I currently work for a smaller office as the lead acquisitions person for the office. I am responsible for sourcing the deals, debt, and equity, along with putting together operating teams or bringing on operating partners. I have extensive knowledge on the asset class and started with limited knowledge of properly sourcing the deals, debt, and equity (responsible for negotiating terms on this as well). I know have a more extensive understanding of these overall but being young, I still lack the knowledge that a more experienced person in my role would have. My comp is solid at 120k+ salary, a portion of any acquisition fee my company is entitled to, and a small portion of the promote my company is entitled to. Clearly, the upside here comes from getting deals closed. I have been at the company for about 2.5 yrs and to date we have closed on 2 deals for a total of $30M which is well short of what I expected us to get done. When do I know it's time to move on and start looking to make a change to a different company? I really enjoy the work and the asset type overall. Appreciate the help.
The comp structure overall is pretty good if you're still young. Granted, depends on COL and hours working but overall not too bad. I will say that being tied to deals done is a little unfortunate for the past 18 months as not much has transacted and probably won't for another 6 months+. I would say to stick it out until this fall and see how the market shakes out for now. There aren't a ton of job postings and the ones that are being posted probably are not going to give you acquisition fees, promote, and a high salary. When market activity picks up and you start doing more deals, the position you're in could be very lucrative but if not, then with the increased deal flow across the market there will be more openings for you to look at.
I will say that it also could depend on the IC's risk appetite. Some shops don't get out of bed for a deal that's less than 20% IRR plus they're hyper conservative, and so when bid ask spreads are this far apart you'll never transact on anything. If that's the case for you, then you'll likely only do 1-2 deals a year even in a good market and you'll be in the same space. If they are just not finding any deal at all that they like, but open to deals across the risk spectrum, then when the market picks up it should be much better for you.
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