Small CRE Sponsor Comp..
I’ve seen a lot about pay at brokerages & PERE, but since the small/med sponsor model is becoming more popular I thought I’d ask to see what the pay is at groups?
Specifically in small/med markets where more of these shops exist.
Analysts?
Associate?
Director?
Partner?
My assumptions in a market like Charlotte:
Analyst-base: $85k - $90k; bonus: 20%
Associate-base: $115k-$130k; bonus: 20%
Director- $150k-$200k; bonus: 30%
Partner-$200k-$300k; bonus: 50%; Equity of some amount?
Let me know your thoughts or what you’ve seen.. thanks
All thoughts are welcome & appreciated
Cant speak to the director + levels as i feel those comp brackets are very person and firm specific, but analyst and associate are right on the money.
Best estimate for director?
(If you had to say?)
What markets are you speaking to?
At a small to medium sized sponsor in the Southeast and you are in the ballpark. Agree that analyst and associate are spot on and it varies quite a bit after that. Our director base is within that range with bonuses higher depending on your role/production. At my group, partner base is higher $400-600K.
How long do your analysts & associates typically sit before getting promoted?
Analyst: 2-3 years then associates?
Or 2 years, 1 year Sr Analysts then Associate.
Or Typically no sr analyst, just to Associate?
Associate: 3-4 years then VP
Or 3 years, 1 year Sr Associate then VP.
Or 2 years, 1 year Sr Associate then VP.
Or Typically no sr associate, just to VP?
I appreciate your feedback. Thank you
Always remember that titles are free at small organizations, so ask yourself is there really a difference between associate and senior associate....if there are like...one or two associates. Or it easier for your partners to pat you on the back and give you a "promotion" to senior associate instead of a real promotion from associate to VP. At the end of the day, at small shops all that truly matters is 1) your actual role/responsibilities 2) what you're getting paid for those roles and responsibilities. Titles are just noise. Unless you're a partner lol. Then it matters.
As a few folks have pointed out - Analyst / Associate pay noted is in the realm.
Once you hit the director level there is a ton of variability. Typically there will be a carried interest component (or co-invest), participation in fees or participation in the bottom line. Salary becomes less a focal point at Director + - goal is to have significant ups.
If you're a high producer there may even be a contract in place that comes with a signing bonus.
Small (<$1B AUM) developer, small market in HCOL state. "Manager" title which means nothing - handle all debt and equity.
$180K + 30% Bonus
1% promote on all deals.
Opportunity to increase bonus to a % of Dev. Fee on deals, promote % increases w/role (source deal/debt/equity, etc.).
How many YOE do you have?
~10
What’s your all in average annual comp since being in this position? What do you project it to be going forward?
~250K. only been at this group for ~1.5 years, so no promote since we haven't sold anything....not that there would be anyways given current capital markets.
Going forward bonus could theoretically be much higher or could be $0, totally dependent on actually getting deals started...which again, who knows if that happens.
Depending on your definition of 'small' I'd reduce all these numbers by $20,000.
$600mm AUM sponsor in a secondary/tertiary market. Associate AM making $100k base and $3k bonus, annually.
Curious to know what others think of this comp or can share their own data point.
Edit: Responsibilities include leasing (in-house and managing brokers), TI/construction management, budgeting/reforecasting cash flows, ad-hoc data analysis and model building to track performance metrics. On a team of ~4, company of ~35.
3k? Or 30k?
Hahaha. Three-thousand and zero cents.
I think the absolute bare minimum bonus has got to be 10% of base. Hope this was an outlier due to the poor market conditions.
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