Producer Compensation: Mezz/Pref Funds

JJP1234's picture
Rank: Baboon | banana points 165

I have heard everything from $35k base + 50-75bps commission to $250k base + 100-300% bonus.

Can anyone weigh in on producer compensation for debt / mezz / pref at Starwood, Related, CapitalSource, ACORE (mezz/debt funds, etc.)?

Any insight is appreciated!

Comments (12)

Feb 14, 2019

Bump. Interested as well

Feb 15, 2019

Any insight here?

Feb 16, 2019

Medium size mezz fund i interviewed with a while ago (~1bn aum) was offering $140K cash comp + some carry for an associate level producer role.

Low/medium cost location.

Verbally they told me there was a path to $500K + annual comp (inc carry) in 4-5 years if I performed well.

Declined for other reasons, but it's a data point.

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Most Helpful
Feb 17, 2019

Analyst level anywhere from 60-90 base with 20-30% bonus.
Associate level is 100-140k with 50-75% bonus
VP and up start tapering off salary around 200k mostly with bonus levels from 100-300% and some carry.

FYI, carry in most debt funds is not that meaningful these days. Returns just aren't that great given competition in the space.

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Feb 15, 2019

Thank you for the response.

So is anyone on the low base + commission structure?

I've seen a few job offers, but they tend to lack the $200k base (even at senior levels). Starting to think they are not legit companies.

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Feb 14, 2019

I'm interested in other inputs myself. As for legit company or not, I knew someone who worked in medical lab services sales. She got a $35k base and made over $500k in commissions.

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Feb 15, 2019

Bump. Would appreciate any other input here.

Is anyone at these funds on a heavy commission structure vs. base+bonus?

Feb 27, 2019

Don't know the industry but I know producers and production. If you're good, you want as little guaranteed comp so you can max out commissions / fees. No harm in taking more guarantees up front if you're just starting out (you don't know if you're good), but long term, producers produce and they get paid for it. Again, don't know the industry but if you could make 200k with high salary / bonus guarantees, I'm certain you could make 500k+ on straight commission.

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Feb 28, 2019

It depends how much they can expect you to produce.Top producers end up in management positions and make millions. I feel like If your going to be a producer at a fund you have to know the market really well and know how your going to get deal flow.

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Feb 28, 2019

There's a guy in my office that exclusively sells Dollar Generals and nets nearly $2MM in his pocket annually. Compensation is 100% comission. His advice: "find a niche and be the very best at it"

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Mar 1, 2019

I'd imagine he runs into little competition as well... good for him.

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