My boss wants me to propose a fee structure per deal with a promote % as well. Think of this sr. associate/VP level role for a REPE.
Role: Associate
City: Firm in SF Bay Area - Don't live in SF (much lower COL)
Base: $77k
Current Bonus: $14k per deal
Carry: None
Total Comp this year: $125k (low transaction volume)
Target is the company completes transactions $250M-$500M in total with a 1% acquisition fee attached. What is a reasonable ask for the level i am at?
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I’m in a similar position to you and work on all deals, whether I sourced them or not.
Base: $120k
Bonus: 25%
Acquisition fees:
I receive $10k each deal closed that I didn’t source, and 25% of the total acq fee on deals that I source
Promote:
Similar to above: I receive a flat promote value on deals I don’t source, and 20% of the total promote on deals that I do.
Wow that seems like a really awesome structure. 25% of acq fees and 20% of the promote… That's great!
A few questions for you if that's okay?
-What was your all in comp (roughly) for 2022? -For the promote you're getting on deals you didn't source, is that something like 2% to 5%, or is it higher?
-What range of promotes is your firm charging?
Feel free to PM me
Ya that seems very high, congrats. What are the sizing of your deals and does your firm have high volume? Would make sense for a smaller firm with low acquisition members. Is sourcing the only thing that matters, or does it matter whether you lead the deal as well? What is your typical fee structure like in a deal, 1% of price or equity raise?
I am being asked to lead and source and was thinking 15% of acquisition fee, 15% of AM, and 15% of carry, but I am only working with the CEO and a partner who leads the equity raise. So, if I can bring in $200M worth of deals and our time horizon is 5 years and 15% IRR (8% pref and 60% LTV) on our structure my carry would like be around $2M.
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