Debt Brokerage Compensation Example

For anyone who's curious, yesterday I was speaking with a friend who's now a top producer at a national shop (CBRE/JLL/Berkadia).  His team is going to originate over $3 billion in new loans this year.  He said his average fee is around 60-65 bps, the company takes 40% of that and he pays his team a salary and bonus.  At the end of the year he is expecting to reach 8 figures for himself.  Granted this is going to be a record year for him but it's a good look and what a top producer can make in debt placement.      

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Comments (11)

  • Associate 1 in IB - Cov
Sep 2, 2021 - 1:43pm

How long did it take him to get there? What is his background?

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Sep 3, 2021 - 11:51am

Agency bankers at these shops get paid a servicing credit on the backend, which is typically in the 30 - 75 basis point range, depending on loan size. Bankers can also generate additional fee income by adding in a few basis points to the rate, which is a called a buy-up/yield premium. Pricing is typically 14 bps of rate for every 1% of additional fee. That is how this person is possibly bringing in 8 figures gross.

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Sep 3, 2021 - 10:48am

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