Seems like once you reach the VP/Director of Acquisitions level, receiving carried interest as a portion of comp package becomes more standard.
I'm curious as to how this piece of the comp stack is quantified (which I'm assuming could be highly lucrative depending on the performance and number of deals bought/sold).
Is it typically a % of the promote piece that is sliced off and provided? I'm assuming that getting a "piece of the promote" does not require that the employee actually contribute equity to the deal, but rather gets a piece of the back end for acquiring, managing, creating value, and ultimately divesting.
My first is a fairly typical owner/operator using LP equity to capitalize every deal. Value add, generally pursuing deals in the high teens LIRR range in a 3-5 year hold scenario.
Small deal team, I am one of 4 acquisitions VPs. I am in the process of acquiring an off market deal from a group that I used to formerly work for, with the potential to buy additional deals off market from them programmatically. My company is super happy, but the reality is smiles and back patting doesn't mean jack unless there's money to be made. My thought is to ask for a % of the acquisition fee (1%) and a % of the promote. Just not sure how much is typical.
