Producer Compensation: Mezz/Pref Funds

Bump. Interested as well

Any insight here?

Medium size mezz fund i interviewed with a while ago (~1bn aum) was offering $140K cash comp + some carry for an associate level producer role.

Low/medium cost location.

Verbally they told me there was a path to $500K + annual comp (inc carry) in 4-5 years if I performed well.

Declined for other reasons, but it’s a data point.

Bump. Would appreciate any other input here.

Is anyone at these funds on a heavy commission structure vs. base+bonus?

Don't know the industry but I know producers and production. If you're good, you want as little guaranteed comp so you can max out commissions / fees. No harm in taking more guarantees up front if you're just starting out (you don't know if you're good), but long term, producers produce and they get paid for it. Again, don't know the industry but if you could make 200k with high salary / bonus guarantees, I'm certain you could make 500k+ on straight commission.

It depends how much they can expect you to produce.Top producers end up in management positions and make millions. I feel like If your going to be a producer at a fund you have to know the market really well and know how your going to get deal flow.

There’s a guy in my office that exclusively sells Dollar Generals and nets nearly $2MM in his pocket annually. Compensation is 100% comission. His advice: “find a niche and be the very best at it”