Curious as to how your guys' debt/equity is dealt with per deal at your shop. I have heard of some acq/dev shops having an AM, Acq/Dev, and a capital team. The capital team would review underwriting and make sure assumptions are correct/reasonable, then go work with debt/equity brokers and finalize/negotiate loan/equity terms with banks and LPs (if applicable).
How are your guys' shops set up, and if there is an internal capital team, what does their day-to-day look like? Do they get paid as much as the acq/AM teams?
Also curious as to who deals with the debt at REPE firms, would it be the acq team, or is there a capital team too?
I work for a top sponsor in our asset class. The senior guys on the acq team line up debt and equity through JVs on the equity side and mostly pooled debt. Sometimes they will source debt if the lenders we most commonly work with don’t like the deal for whatever reason. There is a development finance team that handles all the underwriting and capital markets work. We go to JV equity partners for the large ‘institutional’ deals and family offices for the smaller sub $15mm deals. For debt we source it deal by deal.
Thanks for the response. Does the development finance team get paid the same as your acq/dev team?
We don’t have set pay scale like some of the repe or banking/pe firms so it’s hard to know and the partners really don’t like people talking about comp (probably because they underpay and play favorites :) ) if I had to guess base is relatively similar for all 3 functions at the junior level, and bonus is highest for acq, dev finance, then dev coming in last
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