Currently work as an associate at a small REPE shop in a tier 2 market in the southeast (Dallas/Atlanta/Charlotte). Did a couple of years of IB and now a couple of years in REPE. My firm is small so I am exposed to all facets of the business from acquisitions, asset management, portfolio management, and investor relations. It is an interesting role but I have largely become a jack of all trades / master of none. Also, my comp is interesting, on a cash basis I am far below market (~$95k-$115 all-in cash) but I have promote in our deals which is actually quite significant and continues to vest / grow with each deal we do but it will be 7-10 years before anything actually materializes. My hours are incredibly light to the point that I feel like I am learning less than I could at another firm that is more active.
I am looking for some thoughts on pursuing next steps whether it is staying with the current firm or joining others. Is it worth trading out the promote potential/light hours for higher cash comp/more reps on deals? Have begun interviewing with a range of groups from REPE/Developers/Debt Funds. Let me know what your thoughts are on this as well. Thanks for all your thoughts in advance!
Bump. I am in the exact same spot and would love to hear what some of the RE forum old heads have to say.
This forum isn’t going to be able to answer this question for you. It sounds like you’re on the path to a comfortable life. Ask yourself if you want to make the move to a big white shoe firm - it’s really as simple as significantly more immediate pay for significantly more hours and stress.
Coming from someone who was in the opposite position (top 3 MF out of undergrad, ~170 all-in, 70-90 hours/week on average), I jumped to a no-name LMM boutique that dabbles in MM deals on occasion in exchange for a ~40% paycut, 40 hours/week, and the promise of carry after 2 years.
I don't regret the jump at all as working at the MF completely crushed my social life—and whatever motivation I had to succeed in my career was dwarfed by the existential crises I suffered after waking up from every 3.5 hour night of sleep I averaged during my MF stint. Even though I'm eating shit for the next ~3-5 years (depending on how long it takes for my "promised" carry to vest), I'd gladly take this gig over the MF 10 times out of 10. This is a sustainable career path, whereas the bulk of my MF analyst class was gone once the 1 year mark came up and bonuses were paid out. My team at the MF also had a 100% turnover rate from 2018—if that gives some insight into how WLB and culture factored into retention rate and career longevity.
I'd honestly stick with the carry you already have since it's significant and guaranteed for you already. In any case, most firms are looking to grow/expand and do bigger deals/bigger funds, so imagine what your firm will look like in 7-10 years when you're collecting the big boy checks—probably significantly bigger and more institutional, and you'll have seniority as an added bonus. I think you're in a good position and wouldn't give it up for an institution in an industry that's known for pushing people out pre-VP in MFs.
What about the experience trade? What is the general background of the team you are working with?
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