VP comp at midsize RE credit fund?
Hi all. Appreciate any help as I’m trying to get a feel for what to expect for VP level comp at a mid size RE credit fund in NYC. Went thru 10+ interviews and am expecting a call with one of the top managing principals who will float a soft offer. Any tips for how much to expect/negotiate?
The recruiter mentioned the minimum she told him was $250k base + 40-50% bonus + potential for carry.
But I was actually hoping for closer to $275-300k base + 100% bonus + carry. Am I too far off the mark? Im truly excited for the role but don’t want to leave too much on the table or risk them walking away. Any tips? Thanks in advance for any help!
Based on the most helpful WSO content, VP-level compensation at midsize RE credit funds in NYC can vary significantly depending on the fund's size, strategy, and structure. Here's a breakdown of what you might expect:
Base Salary: $250k to $300k is within the range for VP roles at midsize funds. Your target of $275k-$300k base is reasonable, especially if the fund is competitive and you're bringing strong experience.
Bonus: A 40-50% bonus is on the lower end for VP roles in this space. A 100% bonus is more aligned with higher-end compensation packages, particularly at funds with strong performance or larger AUM.
Carry: Carry participation is often included at the VP level, but the specifics (percentage and payout structure) can vary widely. For example, at a $1B fund, VPs might see annualized total compensation (base + bonus + carry) in the $750k-$1.25M range, depending on fund performance and carry allocation.
Negotiation Tips:
Your expectations are not unreasonable, but be prepared to justify your ask with your experience and the value you bring to the table. Good luck!
Sources: NYC is Paradise, Vice President Fund Carry/Equity, Q&A: Currently at a Credit Hedge Fund, REPE compensation
What are your YOE/history? Are you making VP here or is this a lateral?
Are you being expected to run your own deals/sponsors out the gate or are you working with a senior originator?
Our pay band for VP is 350k-450k cash (base + bonus) with carry awarded once we know you can do the job/are a good cultural fit. I would focus more on the cash piece vs. carry for now. Most credit funds are ~7 years so even with a very solid vesting schedule it is vaporware until a fund fully exits. With a levered credit funds, one or two bad deals can fully deplete carry (and as a VP you usually aren’t in control, but along for the ride).
10 years total RE underwriting experience - 7 at large national bank and 3 at a regional, international bank.
Expectations is to work with a senior originator, but manage everything once the deal is signed up so they’re not bogged down.
I just heard that I’m in line for an SVP promotion at my current employer so the pay range the recruiter mentioned seems less appealing. I also have lots of flexibility and work only 2 days in the office. And, my current employer suggests I’m on track for an executive position in the future which would manage a small group. Though, the pay at my current employer is mid $200s and has flatlined the past few years and I don’t think I’ll get more than a 10% bump for SVP. The new fund would require going in to the office 5 days a week. Would be a lateral move, but seems like potential for significantly higher pay than my current employer?
A levered debt fund is pretty much always going to pay more than a bank. Leaner teams, higher fees, higher rates = more money to pay employees.
But the trade off is just as noted until you are more senior: less flexibility, more hours, and generally tougher environment.
You have to decide what the money is worth to you. You are around the age where people start families and sometimes money isn’t as important as flexibility.
I have a good friend that turned down a 700k job to keep his 450k job because of the ability to WFH 3 days a week and spend more time with his family (he has a team at current job so is really only working like 30 hours a week vs. being “the guy” at the offer with no support). He has 4 kids, so made his choice accordingly (if I had 4 kids I would of gone the other way to be away from them as much as possible, but he actually likes the kids).
You went through ten interviews and are only getting a “soft offer?” Then what? Five more until the offer becomes real?
I think I’m the front runner and he’s giving me a call to suss out my salary expectations before sending a hard offer so I use the term “soft offer” loosely. No more interviews at this point which was confirmed by the recruiter.
10+ interviews? Were they individual rounds (i.e. first round, second, third, etc) or was it just 10 consecutive people you met?
[Removed comment and reposted above]
Comps for that type of job vary a lot, know people stuck in that kind of role at $250-350k all-in cash only, and others able to transition to origination role where comps and production are more correlated and they can make a lot more.
$250k + 50% is fine as long as there is enough room for you to move to origination. It is very competitive out there for people with ~10 years experience because AUM has been stagnant due to market sucks so many cannot transition or move up. So don't get hung up too much on comps over the next few years if you see long runway to grow there. I was personally stuck at less than that range for a while but once fully transitioned to origination, it can be very rewarding.
Thank you -- very helpful. I do see runway to grow there (culturally, I think it's the best fit I've seen so far). They even asked if I would like to be an originator during the interviews so think this position would tee me up for that in the future.
Any tips for negotiating carry at this level? Assuming $250k + 50% bonus is the best cash offer I'll get, I'm wondering if i could try to get a higher percentage of carry? Though, not sure what's market for VPs (think 1-2%?).
Unfortunately, I do not have anything to offer as I did not have carry as an VP before. I am not based in tier 1 market so admittedly, I did/do not have a ton of negotiating power. I am sure I can try my luck and make a lot more in NYC which will be a different ball game for cost of living and won't make sense for my current situation. Even with carry now, I don't think I will see any of that for existing funds or at best 2-300k in a few years as performance has been mediocre (and we are borderline between low Q1 and high Q2 performance ...)
Just my two cents working in REPE at a large NYC based fund - VP does not make $550-600k cash, closer to 400-500+ carry depending on level of VP. SVP 550-750k +carry. About half in salary, half in bonus.
Thank you! Very helpful
Curious, what do associates make at your shop? I’m at +/- $300k as an ASO1 and trying to figure out how much it ramps at the VP level.
Ten interviews? Yikes.
Did you get the offer or did they jerk you around?
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