Morning, Monkeys.
It's been a while since i posted, been busy on all fronts. I was recently approached by a large, well-known alt investment firm (top 20 PERE list) and they made me an offer. The offer is compelling enough for me to strongly consider it (30%+ increase in cash, meaningful promote award, sizeable co-invest...etc.), despite where we are in the RE cycle. As a way of background, I am currently a VP at a boutique PERE firm, with 10+ years of experience, heading up acquisitions, financings and other strategic initiatives. I am considering bringing up the offer to the MD at my current spot to see if there is room for a recalibration on comp and perhaps some other points. Does anyone here have experience doing that?
There was another thread on this. Mixed-opinions. I personally think it can work but just be prepared and in a position to accept the other offer. At a prior boutique PERE firm I worked at, I know several past co-workers that left at the VP/MD level for better comp at a bigger shop and they all told me that the firm offered them to match their comp if they stayed when they told them about the offer. They all elected to leave anyway.
Some will say that it's better to go work at a shop that values you. In my experience, these smaller PERE firms tend to need a trigger to pay you higher (such as a competing offer) and generally don't put you to market pay without it. They can be great places to work, so I don't see any issue in staying if they match your offer.
Are you able to share what the offer is in terms of comp (ballpark is fine)? I'm in a similar position and wondering what offers are looking like these days at VP level (I also am closing in on 10 years of experience).
Location: West Coast HCOL major MSA
Base: $245k-275k
Bonus Target: 100%
I continue to be amazed as to how low my base is comparatively
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I'm around the same experience level and figured I'd share what I've heard from a couple of recruiters recently for sourcing/execution VP roles at west coast multifamily shops ($1 - 10Bn AUM). Base $200-230k with bonus 20 - 30% plus carry. One shop also had dealflow bonus with potential for additional 30% of base, but given the current environment wouldn't expect much any time soon.
Always surprised how often I see 100% bonus on these threads, but then again I'm not typically chasing roles at the big $10Bn+ multi-strategy shops.
Agree with above.
Be prepared to take the other offer.
I would bring up your comp to your current company, maybe in a 1 on 1. Don't be direct, they should read between the lines if they are smart. VP is not quite where you play the meet me or match game, that MIGHT be SVP/ED.
You should say, you are looking for higher comp, or looking to bring your comp to market,
I did this in Q1 of this year. Approached my partners out of the blue and told them that after 2 years of us starting up the firm, inflation etc. I found out that the delta between market and my current comp was too great. I made it clear that I had no desire to leave but was not willing to remain below market. They quickly matched with a very large increase in cash and carry. As mentioned above, smaller shops especially early in their existence, value top performers however their job is to keep company carry costs as low as possible until the organization becomes a well oiled machine. So until their back is against the wall and they have no choice, they are more likely to keep you below market as long as they can. It does not mean they don't value you or want you to leave its just a company doing what its supposed to do. As others have mentioned, I would be ready to take the offer in case things don't go well but if you really like where you're at in terms of work/culture/coworkers I recommend you approach them and have an honest conversation. Never know where it might go. And if doesn't go well, you have your exit ready so no sweat off your back. Most importantly, I think you need to have an honest assessment of where you feel your future progression can be the greatest in terms of responsibility/role/comp. We're in a long term industry so its important to take a long term view with these types of decisions.
In my experience, a VP with 10 years of experience is typically a highly valued role at a boutique shop and is typically pretty disruptive to the company if they lose that person due to smaller teams. So I do think at the smaller shops, 8-10+ years is an acceptable place to play the meet me or match me game. That's assuming OP is a high performer, of course.
I have yet to meet someone 10+ years in, who doesn't think they're a high performer ;)
Commenting to follow this.
All good feedback. Has anyone here had their offer rescinded prior to start date? My biggest concern would be that, and then having to go back to current group.
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