Comp Package
I was approached by a family office to oversee Acquisitions, Asset Management, and Investor Relations. My background is primarily in acquisitions within a specific real estate asset class, and they are looking to focus more on that asset class while also expanding their current holdings in other areas of real estate. I hold an MSRE and have seven years of acquisition experience in that specific asset class, along with some Asset Management and Investor Relations experience, though to a lesser extent. They are willing to provide guidance and training in AM and IR. What would be a fair compensation package for such a position?
Depends on how much capital ("AUM") they have to put to work and what type of market you'd be in - are we talking HCOL or tertiary? Not all family offices are the same, there's a wide range - I know family offices that have ~$50M of capital versus larger shops like DFO (Michael Dell's family office) that have billions in AUM, and are essentially institutional investors. Your pay package will generally scale accordingly.
I'm guessing it's a smaller shop given your title description has you wearing several hats. Is it a single family office, or a pooled entity that serves several HNW families? Assuming it's the latter, as there really isn't a need for investor relations at a single family office given all the capital is internal.
I would say $200K all-in cash comp is a starting point given YOE, adjusted upwards or downwards depending on your previous role, market, and firm size. There will likely not be any promote structure, so you're going to want to push for co-invest on deals and a performance incentive pay structure tied with your bonus - if it's just all-cash comp you'll be leaving money on the table after a couple of years.
It is in an HCOL, Northeast-based based but they invest across the US. I would say it's approx. 1B of AUM. They started off investing their own funds and have now started taking in outside capital on a deal by deal basis with a vision of creating a fund. 200k all in comp seems light to me, as I am currently in that range in my current position. I believe carry/promote is on the table as they have asked me to put together a com package.
$200k all in? $200k should be the base given YoE and scope of job
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