Acquisitions Analyst Compensation
I am currently working at a small RE investment firm (me, my principal and a partner who technically runs his own development company). Nothing to complain about the work, seeing a lot of deal flow, learning a lot about the market and overseeing the management aspect on some of the portfolio.
Right now my compensation on the lower side (think 40-45k, plus few opportunities for little bonuses) and in about 5 months we are suppose to reconvene to talk about my raise.
Some of my opportunities are sourcing and underwriting new deals, workings hands on with the new developments and assisting with the property management aspect. Believe I am helping my boss see a lot more deals and making life much easier by having the under writings already done.
What do you think is a fair base structure?
Where are you located?
NYC area
40-45K for an acquistions role in NYC area..
You should have that talk about a raise right now..
Forgot to mention its a junior level position, I am directly out of college with no full time experience only internship experience. Hours are also 9-5/530.
What do you think compensation should be?
I think you need to ask your peers and spend some time on Glassdoor. That will help you get compensation comps for companies that are similar to yours .
2x what your currently getting paid. Are you comfortable with underwriting or are you learning in this role? If you have someone there showing you the ropes, there could be value in that.
You should really get your base up to the 60-85k range so that you can survive. That is a pretty typical salary in NYC for analyst level jobs. Then the bonuses is something that is more of a sliding scale depending on what you do and how much they think you are worth.
Even for a smaller company? The excel work I do isn't really too advanced, it is more of a back of the envelope model.
I'm in Texas, and am getting paid about $95k per year including my bonus at a mid-sized fund. This is my first full-time job. You're not getting paid close to market, especially for NYC. I would expect a base of at least $65k.
Deleted. Thought TY was pulling $95k pre-bonus, not post.
What are your bonuses based on?
Acquisition volume. 65k base and I get $0.0001 for every dollar of purchase price. I get a bunch of small bonuses that are paid at each closing. For 2019 we anticipate closing $300M, which means in total my bonuses should add up to in the $30k range.
They are kind of screwing you if you are making 40-45 in New York
OP I am at a small boutique developer, similar to your setup, I work directly for a principal. There are 8 people on the “deal team” ... I am at one year of experience in Texas. Similar hours, 50-55 a week. $68K, 25% bonus, 2% carry. This is over $100K a year if I stay long enough for the carry. Your base and bonus together should be closer to $75 - $90K in NYC, even directly out of school. In Texas, it is more like $55 - $70K all in 1st year.
EDIT: in my year end review they told me they will promote me/bump my base significantly mid year... the more you learn, the more valuable you are, the more competitive your compensation needs to be for your firm to retain you
How exactly does a carry work?
Also, have you seen this thread? https://www.wallstreetoasis.com/forums/what-is-your-compensation-in-rea…
You need them to quantify “significant”. Something like a 20% pay increase isn’t much when you’re at 45k.
EDIT: I’m scatter brained. I thought I was replying to the OP.
It sounds like you're getting good experience now. You're barely being paid anything though. You should be bumped up to at least $65k at a bare minimum when you reconvene to discuss compensation. You should try to aim higher though.
Market for entry level analysts for acquisitions, lending, development in NYC is $60-$70K base.
On a side note, well done for living in NYC on $45K. That’s an accomplishment in itself!
For comp, try to get your salary up to at minimum $60K in the future. That way you can atleast function like a normal human.
In addition to a 60k base, what other bonuses should be in there? Like carry, equity, year end bonus, etc.?
It’s going to be different shop to shop. I would guess there would be 100% a bonus at the end of the year based on performance.
If I'm you, given what I know about your situation, my pitch to your superiors is some variation of this;
"Look, I really like what I'm doing, I think I have some strengths here and I'm gelling with the team. I want to double down on my commitment and step up as a full-time analyst and start taking on more responsibility."
followed by;
"But it is tough right now and I was hoping we could negotiate a salary more in line with the market so I can achieve my financial needs if I'm here for the long run. I understand that right now the experience I get is far more valuable than a cash payout, and I can't express my gratitude for the experience that you continue to afford me, but I've got obligations (make it sound like you're drowning in student loans) and it's getting tough to push them off further"
They should respect that and they ought to pay you. If they don't pay you, continuously look for a lateral opportunity. A lot of REPE shops take analysts with 6 - 18 months of experience as long as you have the basics and can hit the ground moving a bit as opposed to coming in completely green. It also speaks volumes about a company if they don't take care of their people. If they don't pay you at least 70K all-in, get the fuck out of there as soon as you can.
What would you say a market pay would be? Also what are some typical bonuses and other incentives offered?
Use the search function and explore the various forums on REPE comp. For your run of the mill REPE shop with $2 - $15B AUM, an analyst should be in the realm of $70,000 - $80,0000 with around a ~20% bonus. In New York, at a decent shop, you should be on the high end of that range. If you're at a MF you should be making IB money. For shops under $1B AUM there really is no "market" pay and you're far more likely to have deal/incentive based compensation make up a larger portion of your salary, as your shop's income will likely be less steady (and the partners are probably pocketing a disgusting amount of it) so it's easier to give employees a cut of acq fees while paying out lower salaries to control the fixed costs.
In your situation you need to use your brain and judgement to decide what to ask for. I don't know your bosses, I can't give you a definitive how-to guide (though I tried). Use your brain and figure out a number that wont make your bosses scoff and wont make you bankrupt.
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