How do sponsors structure comp for an acquisitions/development lead? Salary vs. promote vs. dev fee
I’m working out a comp structure for a senior acquisitions and development role at a multifamily sponsor and would like some real data points.
The role covers sourcing and running ground-up market-rate and LIHTC deals.
For those at small or mid-size sponsors, or who’ve negotiated something similar:
- Base before the first deal: full salary from day one, a reduced retainer or draw, or deferred pay that catches up at the first closing?
- Base after deals start closing: roughly what range?
- Promote: what share of the GP promote goes to the person sourcing and running deals? Is it only on deals you source, or firm-wide? Is the % promote before or after GP split fees costs etc?
- LIHTC: if you do affordable, how is the developer fee shared with the deal lead? A % of the net fee, paid as each installment comes in?
- Co-invest / ownership: does the firm fund or grant you any interest in each deal, or do you have to write a check?
- Vesting and tail: do you vest at each closing or over time, and what happens to your points if you leave?
- Deal Size and Funding: Whats your typical deal size? How are you funded?
Ranges are plenty, and DMs are fine if you’d rather not post publicly. I’m happy to share what I find in a summary afterward.
