Blackstone Real Estate PE in London
PE
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on 1/18/08 at 5:06pm
There have been quite a few posts about REPE but most of them are about NY. I was wondering if people have an idea about Blackstone's REPE group in London. I know they hire one first year analyst a year but other than that, how are the prospects? The payscale in the first three years as analyst and then associate?
Any other info would be appreciated. Thanks.






No one?
No thoughts on this yet? I am mostly interested to know what is the bonus structure in the first 3 years as Analyst as % of base pay.
If you want to do real
If you want to do real estate, you can't do much better than Blackstone RE, comp-wise or otherwise - but I can't say I know any more about the London office than you do. Why do you ask? I'd be more worried about the work you'd be doing than how much you'd get paid. If you're doing the same shit that the analysts in the NY office do, then it would be completely stupid to turn down an offer there based on money.
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they were recruiting analyst
they were recruiting analyst straight out of top UK undergrad and grad programmes. advertised salary was 35-40K GBP, but i'm not sure about bonus
yeah
Yeah, I know the starting salary is comparable to the industry average for Analyst positions in IB, I just didn't know how overall compensation compared.
Also, once you start in real estate, people on these forums often talk about "pigeonholing" yourself...so are you stuck in RE PE for good?
There is some mobility, but
There is some mobility, but not much. In my experience, people willing to look at you from outside the industry are not prepared to match your compensation. So if you get in and don't like it, be prepared to take a cut in pay.
I agree on that it is
I agree on that it is difficult to move from real estate to the traditional investment banking or private equity, but how does the compensation compare between the two?
Well, once again nobody has
Well, once again nobody has any idea what comp is at a top REPE fund!
I've been on here (and vault) for a long time and I've never really seen anyone post compensation info for REPE.I don't know why it's such a big secret, but it's annoying as hell.
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well
Well, if you are coming form Blackstone REPE I don't think you will have any difficulty moving around. Especially if you move into PE or RE banking, because you have the modelling skills and if you are at Blackstone you get amazing deal exposure, ie Hilton, EOP, etc.
The compensation unknown, however, is a bit frustrating because bonuses for top REPE funds seem to be an enigma!
Clearly it isn't Blackstone
Clearly it isn't Blackstone REPE, but a friend of mine in a BB REPE (65B+ AUM) group made a 10k sign-on, 60k salary, and roughly 20k bonus. He worked about 55-60 hours a week. He spoke of most of the analyst bailing after 2-3 years for smaller REPE groups and upping their salary to about 100k salary, 60k bonus, same hours (55-60). Again, the prestige of this bulge in REPE isn't much, but it is a strong bank and clearly a huge fund. Hope this helps.
Krakauer, THANK YOU for
Krakauer, THANK YOU for pitching in there, that's good to know. Know anything about mid- or senior-level comp (that is, VP or MD+) at these funds? Do you know if most of these analysts eventually have to get an MBA to keep moving up?I've heard that you HAVE to get a top MBA to work at Blackstone or Starwood Cap.
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BX RE
comp at the VP to MD+ comp has been as good as the PE fund recently if not better. (So top guys like Gray/Pike who run group cleared 100's of millions literally). Then again, would next expect a repeat performance of last 3-4 years IRRs. To offset they have a huge fund now and will pay very well through principal at which point carry matters a lot (IRRs begin to have huge impact on comp). They pay competetively at the junior levels to other PE funds.
Honestly, REPE is pretty
Honestly, REPE is pretty ambiguous. I think that the comp varies significantly depending on if you are working in a REPE group within the asset management division of a bulge, or if you are working at a traditional private equity firm with a real estate division, or a sole REPE firm. My only exposure is via my friend at the REPE of a top bulge, but again not usually known for REPE (though 65b+ AUM in comm RE). Associate and higher comp is pretty unknown, but it never seemed like anyone was "rolling".
I do think the REPE path can be untraditional: you may have to suck up a few years of 90k salaries (salary up 5k annually and approximately 15% bonus increase) at the analyst level before you leverage the name and the significant deal flow and move to a more opportunistic, probably smaller, group/fund. Aside from MS, I would probably look outside the investment banks for REPE related positions post-analyst.
Also, expect REPE to be down this year, and the next year(s) contingent on the economy. Deal flow is drying up significantly and many hiring freezes are in place. Infrastructure is, however, expanding pretty quickly and becoming somewhat of an "it" investment for PE. Perhaps short-term trend, but good modeling/asset management experience transferable to RE if needed.
Lastly, propose: I am not familiar with the MBA preferences at Starwood or Blackstone, but I've never noticed a MUST HAVE MBA for career advancement. I've seen a lot of NYU and Columbia RE master's degrees though.
Anyone know anything about
Anyone know anything about the London office specifically? I have an interview coming up soon.
i also have an interview
i also have an interview coming up with a top REPE firm, but was wondering what types of questions would be asked... where would i go about finding information regarding the REPE landscape and RE valuations?