The Ultimate Guide To Deal Sourcing Compensation

The Ultimate Guide to Deal Sourcing Compensation – Part 2

2M ago 42:42

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Is your compensation in line with your peers in private equity business development? Are you unsure of what the market standard is for base, bonus, and carry?

Today we break down the highly anticipated 2024 Business Development Compensation Survey, offering crucial insights into current compensation trends, bonus structures, and the factors that truly influence your earning potential in the competitive world of PE deal sourcing. Get the data you need to benchmark your worth and understand the evolving landscape of BD compensation.

CHAPTERS:

00:00 - The Compensation Conundrum: Are You Paid Fairly in PE BD?

01:11 - Unveiling the 2024 BD Compensation Survey: What's Inside?

01:49 - Behind the Data: Survey Methodology and Participation Insights

03:55 - Who Responded?: Demographics of the BD Compensation Survey

06:23 - Lower Middle Market Dominance: Where BD Talent is Concentrated

08:11 - Regional Hotspots: Northeast Still Leads in BD Professionals

08:59 - Compensation Blind Spots: Why This Survey Matters

09:39 - The Compensation Gap: BD vs. Investment Professionals

11:14 - Diving into the Data: Key Compensation Takeaways for 2024

12:33 - Uniformity Across Titles?: Base Salary Increases by Seniority Level

13:36 - Bonus Bumps and Deal Volume: A Correlating Trend?

16:14 - Carry Allocation Trends: When Does Carry Kick In for BD Roles?

19:55 - Decoding the Numbers: Base, Bonus, and Total Comp by Title

23:24 - The Compensation Formula?: Regression Analysis and Key Drivers

25:14 - Seniority Rules: Title as the Top Predictor of Base Salary

27:31 - The Office Paradox: Days in Office and Compensation Correlation

30:44 - Discretionary vs. Metric-Driven Bonuses: What's the Breakdown?

33:56 - Success-Based Bonuses: A Smaller Piece of the Pie Than You Think

35:53 - The Bonus Structure Shift?: Moving Towards Metric-Based Compensation?

39:28 - Intermediary vs. Proprietary Sourcing: Impact on Bonus Structures?

41:45 - Get the Full Report: Where to Dive Deeper into the Data

42:33 - Stay Connected: Deal Sourcery and Coastal Partners Resources

Key Takeaways:

"We saw an 11% increase from 2023 base salary into 2024. And that's across all levels, seniority fund sizes. But you know, a healthy increase."

"VP level and above is when it starts to be much more common to have a carry allocation."

"Seniority level seems to be the primary indicator of like the most significant change in base compensation. And then fund size kind of behind that..."

"57% indicate that they only receive discretionary bonuses."

🔗 CONNECT WITH THE HOSTS:

Dan Herr: https://www.linkedin.com/in/danielherr/

Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/

Coastal Partners: https://www.coastalpartners.co/

#BusinessDevelopment #PrivateEquity #CompensationSurvey

14 episodes