I'm hoping to get some advice here on what compensation structure does WSO see for CRE "equity brokerage".
A little background:
Firm: I work in the "advisory" group of a large CRE firm in a group that does everything from M&A to equity brokerage for deals and some funds (placement agent work). We run a lean team and cover all of the U.S.
Title: First Year VP/Director-level;
My Role: Everything, but focusing a lot recently on equity placement (JV, programmatic JV, and some fund work). We get paid 1-3% of equity capital placed in a deal or vehicle.
Experience: 8 years out of undergrad, all in CRE finance (debt and equity) at reputable firms.
Hours: 60-90/week.
Comp Structure: 150k base + Bonus (more on that below)
My Dilemma:
My time is spent as follows:
40% on execution of MDs' deals, research, supporting management team, contributing to pitches, training and managing junior team, etc.)
60% on building out book of business for equity placement, including sourcing my own clients and finding capital for them, placing capital for our MDs' client deals, etc. This also includes me performing a significant amount of project management functions, as it's a lean team.
This practice has taken off a bit and might start generating significant revenue for the group.
Because we're a base + bonus structure, there is no direct compensation for the equity brokerage fees my book brings in; it's at the managers' discretion.
I'm curious how comp for dedicated equity placement producer compensation is typically broken down. For example: If you source a client and raise $50mm for that client at 2% fee generating $1mm in revenue for the group, how much of that goes to the "house"? What are the typical splits within the team? Are there split adjustments once you hit certain revenue numbers?
Any help would be appreciated! Feel free to PM me.
Thanks in advance
Hi thebigragu, any of these topics helpful:
Fingers crossed that one of those helps you.
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