VP Comp
Looking for updated market ranges for Acquisitions VP comp at top-25 REPE value add/opportunistic shops. I know it is quite fragmented across the industry, but this would be for a national platform (mid 11-figure AUM). A number of threads out there are a bit dated, so hoping to get more recent insight. Any thoughts would be greatly appreciated!
Based on the most helpful WSO content, VP compensation in acquisitions at top-25 REPE value-add/opportunistic shops can vary significantly depending on the platform, location, and specific responsibilities. However, here are some general insights:
Base Salary: Typically ranges from $175k to $250k for VPs at national platforms with mid-11-figure AUM.
Bonus: Bonuses are often 100%+ of base salary, depending on individual and firm performance. This means total cash compensation could range from $350k to $500k+.
Carry: Many VPs at this level are eligible for carry (profit participation), which can significantly enhance long-term compensation. The specifics of carry depend on the firm's structure and the individual's role in deal execution.
Hours: Expect demanding hours, especially during active deal cycles, as these roles often involve extensive underwriting, financial modeling, and transaction management.
If you're looking for more precise numbers, it might be worth networking with peers in similar roles or consulting with industry-specific recruiters who specialize in real estate private equity.
Sources: REPE vs REI, Differences between CRE vs REPE, Difference between REPE, GP, LP, debt fund?, Roles Within REPE, Why do so few go into Real Estate?
Based on my personal experience and recruiting for VP1 at the shops you mention:
Base: 225k - 300k
Bonus: 100%-150%
Total Cash: $500k (lowest I’ve heard for top shops) - $700k with most falling around $600k
Carry: Varies but usually some package valued at 1-2M based on expected returns over 3-5 years
This is for 6-7 YOE, would expect 8-10 years to be 50k higher for base and greater bonus upside. People are going to say this is high, but I have received offers in this range and know what people at other large shops are making.
Any insight into how this differs for credit teams (vs acquisitions)?
Depends what type of credit. Opportunistic / Special Sits is comparable, but if you’re doing lower risk origination with insurance money (which a lot of the MFs have) it’s ~30% lower comp. Generally much less competitive / lower caliber talent pool for the low risk lending arms.
Will note that insurance money (APO / KKR) also have opportunistic credit vehicles. Imagine it’s paid the same as pure play opportunistic / special sits. Maybe even more given additional insurance strategy + being an MF.
This is hilarious that you’re calling it a lower caliber talent pool. During 90% of historical periods lower risk real estate (core plus) has actually returned higher than opportunistic real estate (heavy value add and development). It’s more than quite possible the people doing the lower risk investing are actually higher caliber and dare I say - smarter.
All the above to say - real estate isn’t rocket science and the people at opportunistic shops aren’t necessarily smarter.
If we’re talking averages, there’s no question the opportunistic guys are smarter. The work is more complex and the recruiting process is more competitive, so you have to be deliberate and motivated to land a seat, and those seats pay better and usually go to higher quality, smarter candidates.
I’ve worked across plenty of people at commercial banks, life cos, pension funds, and your run of the mill mega Core funds to know that the bar at those shops is very low. And that’s not to say that it’s particularly high at the opportunity funds, but it is a little higher.
Importantly, though, as you alluded to, intelligence does not make for a successful investor. And there’s certainly no shortage of opportunity funds doing dumb things. This is a C student business after all!
You can’t possibly believe that the VPs at a senior loan originator are the same caliber as the VPs at a top opportunistic fund. Completely different pool of candidates and paths to the roles, which is reflected in the comp (the point of OPs post). That wasn’t a comment on which investment strategy is better, it was merely to contextualize comp differentials. And now that I think about it, VP comp for that type of lending is probably a 50% discount to opportunistic equity.
I assume this is for NY this makes sense
What kind of hours are you working for this salary?
Good intel. What are folks seeing for comp for MD level experience for development instead of acquisitions? Seems hard to pinpoint right now given how dead the development market has been last 18 months.
$500K all in
I’m at a top 10 REPE shop and we are only $425K-$450K as VP1
At same shop, associate was $350K and senior associate was $395K
Sounds like numbers at KKR
…
is this for development?
Do you by chance know what the next level above you makes?
I wish I knew… :(
Are these NY/LA numbers?
Yep
Anyone have a sense of non coastal markets? Was just quoted 175k base and a 45% bonus for VP + carry across three funds. Bonus seems light.
Bump
Omnis sint adipisci dolorem necessitatibus dicta expedita omnis. Quae ipsa exercitationem et ut. Neque minima harum eos et voluptas eius. Quos aspernatur facilis ipsam maiores aperiam quidem. Perspiciatis eum sit voluptatum nisi. Aut officiis facilis laborum aut consequuntur voluptatem.
Recusandae architecto odio laboriosam dolore. Ipsa ea eligendi dolor repudiandae. Dolor consequuntur et et et. Harum asperiores non a occaecati. Aliquam qui corporis voluptatum.
Nesciunt nesciunt impedit quas nobis accusamus officiis. Rerum adipisci ad mollitia natus. Nam dolorem ducimus voluptas in et. Et rerum vel suscipit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Incidunt est modi enim voluptatem debitis. Facere aliquam soluta magni quam optio est velit in.
Alias voluptatem modi voluptas ut dolore unde omnis cum. Unde quam optio in neque omnis aut. Est quae quos accusamus dignissimos laborum aut. Totam exercitationem omnis nisi amet eum. Eos doloremque vel sed voluptate nihil. Quas non illo est.