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Wall Street Oasis » Forums » Private Iniquity
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Blackstone Real Estate PE in London
 

Pepin's picture
Pepin
      PE
 
(Monkey, 31
 
Points)
 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.

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  • Private Iniquity
Pepin's picture

No one?

Pepin
      PE
 
(Monkey, 31
 
Points)
 on 1/21/08 at 1:23pm

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.

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prospie's picture

If you want to do real

prospie
     
 
(King Kong, 1,674
 
Points)
 on 1/21/08 at 6:39pm

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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x's picture

they were recruiting analyst

x
      O
 
(Baboon, 112
 
Points)
 on 1/22/08 at 8:28am

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

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Pepin's picture

yeah

Pepin
      PE
 
(Monkey, 31
 
Points)
 on 1/23/08 at 6:21pm

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?

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TopREanalyst's picture

There is some mobility, but

TopREanalyst
      IB
 
 
(Senior Chimp, 21
 
Points)
 on 1/23/08 at 6:38pm

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.

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bball's picture

I agree on that it is

bball
      PE
 
(Chimp, 13
 
Points)
 on 1/24/08 at 11:00am

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?

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prospie's picture

Well, once again nobody has

prospie
     
 
(King Kong, 1,674
 
Points)
 on 1/24/08 at 12:43pm

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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Pepin's picture

well

Pepin
      PE
 
(Monkey, 31
 
Points)
 on 1/24/08 at 2:56pm

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!

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Krakauer's picture

Clearly it isn't Blackstone

Krakauer
     
 
(Orangutan, 328
 
Points)
 on 1/24/08 at 10:49pm

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.

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prospie's picture

Krakauer, THANK YOU for

prospie
     
 
(King Kong, 1,674
 
Points)
 on 1/25/08 at 4:45pm

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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napoleon's picture

BX RE

napoleon
     
 
(Baboon, 170
 
Points)
 on 1/25/08 at 4:50pm

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.

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Krakauer's picture

Honestly, REPE is pretty

Krakauer
     
 
(Orangutan, 328
 
Points)
 on 1/27/08 at 10:58pm

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.

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Warhawk_1's picture

Anyone know anything about

Warhawk_1
      IB
 
(Senior Orangutan, 462
 
Points)
 on 9/22/08 at 6:30pm

Anyone know anything about the London office specifically? I have an interview coming up soon.

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ihavenomoneynow's picture

i also have an interview

ihavenomoneynow
      IB
 
(Baboon, 122
 
Points)
 on 9/27/08 at 1:27am

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?

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I used to work with a guy that had everything on the surface, but absolutely nothing inside. The guy was 6 feet tall, good-looking, charismatic, multi-lingual, graduated from a top business school, and had made MD at a bulge bracket investment bank. Yet he couldn’t remember the last time he...
How to Develop a Personality
<em>Mod note (Andy): we vetted this user to confirm his identity/status and yes in fact he is who he says he is, and is eager to answer your questions :)</em> Bio: I decided to join WSO to help both students and young professionals advance in their Finance careers, whether that be...
I'm an MD and I run the Sales division: Ask Me Anything
I'm currently a Private Equity Analyst in Shanghai, China. Academically, I graduated from a target school majoring in Economics and Chinese. I also spent my time at college as the president of an on-campus student organization related to Finance and Economics and a volunteer for a local...
Ask me anything… I'm a Private Equity Analyst in Shanghai
You've just gotten that promotion and now you're in charge of a small team. Congratulations! And welcome to middle management. All the hard work and the knowledge you've developed about everything your firm does these past few years has been noticed. But, now you have a small...
7 Things I've Learned About Being A Manager
Assuming that you have access to no financial products such as FactSet, Bloomberg, CapitalIQ, Thomson or otherwise, thought it would be helpful to give a step by step guide on how to ramp up on a new company from your home computer. Using FaceBook as an example. Lets go ahead and start with the...
Basic Guide Ramping Up On A Company With Public Information (Part 1 of 3)
Fellow Primates, We are looking for 1-2 students on each campus to help WSO in its sales efforts to student clubs/career centers, and overall promotion at your school both online and on the ground. Below is a description of the position and benefits...thanks in advance for your help! <a...
WSO is Looking for Campus Reps For Summer/Fall 2013 (and beyond)
<em>“You know, In The Flesh,”</em> a WSO monkey told me at a recent Happy Hour, <em>“that gentleman’s book is the real deal. I ordered that shit on Amazon as soon as I read your review. It’s so right, man. I want to be like that: keep my word, honor my commitments, be...
Being A Gentleman, Revisited
<em>Mod Note: This is a syndication from Jared's Daily Dirtnap daily market newsletter. WSO readers qualify for a $100 discount...just email [email protected] and mention "WSO Monkey Discount" You can follow Jared on twitter at @dailydirtnap</em> There I go...
In Praise Of High Interest Rates
You guys are gonna have to get me caught up because I have literally been living in a cave for the past week. Well, several caves, but I'll get to that in a minute. I just got back from what was possibly the <em>least</em> relaxing (but most interesting) vacation of my life. In...
I Spent the Past Week in a Cave
That included Brady having a breakdown because he still couldnt get into Harvard. And then me getting my certified user status revoked and being really upset about it. Signs my life is pathetic? I think so.
Had a dream about WSO
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