Acquisitions VP Salary - Sourcing/Closing

drakedraco's picture
Rank: Chimp | 8

How much is an acquisitions VP's salary based on sourcing/closing deals? I would assume it could be significantly higher than base depending on the volume of deals, but could anyone give a range? Would it be based on a percentage of purchase price or do most firms compensate a VP based on a flat fee per acquisition?

Comments (22)

Oct 7, 2014

Hello,
some companies give percentage of purchase price while some give flat rate for every acquisitions.

thnks regards........

Oct 14, 2014

From what I've seen in REIT and some REPE firms you are looking at 120K-200K with 20-50% bonus. Some REPE firms obviously pay more with bonuses as high as 100% but that's not the norm.

I posted this in a couple of other posts:

http://celassociates.com/prime/wp-content/uploads/...

Oct 7, 2014

I know some places, the VP who sources would get a piece of the promote, not sure about fees on transaction volume themselves though

Oct 7, 2014
drakedraco:

How much is an acquisitions VP's salary based on sourcing/closing deals? I would assume it could be significantly higher than base depending on the volume of deals, but could anyone give a range? Would it be based on a percentage of purchase price or do most firms compensate a VP based on a flat fee per acquisition?

i don't think you understand the definition of "base" or "salary"

Oct 7, 2014

Perhaps the range is too great to formulate a meaningful consensus (asset type/class, geographic region, small vs large shop, deal closure time frames, development vs straight acquisition and disposition, etc), but what would be a fair income spectrum for a VP who goes get a piece of the promote structure?

Oct 8, 2014

1 million dollars

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Oct 8, 2014

A million dollars isn't a lot of money these days, Virtucon makes over $100 billion dollars a year...

Oct 10, 2014
pe_re24:

1 million dollars

I would not be surprised if an acq VP at, say, Oaktree took home over 1m all-in (obv after bonus) in a great year. Granted, that is an opportunistic megafund littered with HBS grads, GS alumni, etc...

Oct 10, 2014

Really? damn....Oaktree's baller

Oct 8, 2014

All appreciated answers for laughs and giggles aside, does any have a sincere response to what would be a fair income rangefor a VP who goes get a piece of the promote structure?

Oct 9, 2014

It's going to be different from firm to firm and whether you are talking about fund/REIT/REPE/private investor, etc. I work for a private investor with $7B in AUM. Capital is coming primarily from the principals with some JV equity partners on occasion. These guys never give pieces of equity or income participation to the acquisitions guys. Acquisitions guys negotiate a bonus paid at closing as a Buyer Cost depending on deal size and level of participation. Generally, that is paid only to one guy who was the lead. Other members of the team will see their annual bonus fluctuate based on deal flow, but where I work, that annual bonus is not too big (20-25% of base). My situation may or may not be typical of these family-run operations, though. I have seen the lead acquisitions guys get $75-$100k though, on deal size of $150-300M.

Oct 10, 2014

If it's a shop where you get promote at the VP level then the all in comp will be lower for obvious reasons. If you back into what you can possibly make on the promote then you figure out what the all in comp should be versus institutional work. Where you'd probably be all in at 225 to 300 with large variance due to locations. Its cheap to live in Dallas versus San Fran or NYC. So the non answer is it depends.

Oct 10, 2014

@"prospie" - Peer of mine took $350k home last year all in as a VP and it was a very good year.

Oct 10, 2014

at Oaktree?

Oct 10, 2014
pe_re24:

@prospie - Peer of mine took $350k home last year all in as a VP and it was a very good year.

This sounds correct based on what I've heard in relation to my firm

VPs arent very high in the ladder (Analyst -> Associate -> VP ) and this is RE we are talking about not vanilla PE (where maybe they are in fact closer to 7 figs, but I wouldn't know).

Oct 10, 2014

Yes @"JimboUSC"

Oct 10, 2014
pe_re24:

Yes @JimboUSC

Oops. Guess I am an idiot.

Honestly, someone who would know and someone who I trust had told me that oaktree was offering 300 all-in pre-MBA. 350k for a VP at a place like that or BX seems awfully low, but whatever, guess I will just shut up.

Oct 10, 2014

I would wager that no VP-level acquisitions guys anywhere make $1M+. What others have said sounds abut right, $250-300k all in.

Oct 10, 2014

Sounds like Oaktree reg PE not RE unit

Oct 17, 2014

It is depends on the amount of the deal If the deal is big their part is more. Mostly acquisition VP's charge some percentage of the deal.

Oct 21, 2014
Comment
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Oct 21, 2014