Real Estate Hedge Fund (Groups)
Hi all - Looking to gain some insight into what working at a Real Estate specific HF or Real Estate Specific group at a HF would be like. I know this differs from REPE in terms of asset allocation, strategies, etc. But I don't know how so. Here are a few questions of mine to make things more organized:
1. What are some names of HFs that are either fully Real Estate-focused or have Real Estate pods or groups (maybe focus on REITS? idk)
2. What does comp look like? Can Real Estate groups have big years in which the PMs crush it and make like 10M lol. Is performance as variable as any other group year-over-year?
3. What does life at one of these funds or groups within funds look like? Hours?
4. What experience(s) is/are optimal for recruiting into these funds/groups?
Thanks guys, I appreciate the help.
Land & Buildings for REITs though seems like a bit of a clown show recently with failed activist bids. Doubt they make crazy HF 8 figure numbers. Not sure who else though all the large AMs have active RE ETFs. You can make more at an R/CMBS fund but you basically have to be a macro smart quant.
No idea on comp and strategies, but these firms have RE groups.
Davidson Kempner, King Street, Two Sigma, Long Pond Capital (RE focused HF), SVPGlobal, and Farallon Capital.
In terms of strategies at a high level, the HFs that have a RE arm doing direct RE deals (i.e. not reit/ liquid mbs investments) tend to focus on investments on a deal by deal basis. This is opposed to large MF REPE like BX/ BAM / STWD who may have more "thematic based investments". Of course the MFs look at each deal individually, but they have a strategy in mind (ex. target industrial across EU) and deploy capital with that in mind. Whereas these HFs may be open to investing in a retail shopping centre, a student housing development in Dublin gone bust with distressed opps, etc. They're not opposed/ restricted to looking at such. I could be completely wrong, but that's what I've been told (please comment if I'm wrong).
No idea on questions 2 and 3, but on 4 most people on LinkedIn seem to have either worked at a reputable RE investment firm, IB, or both beforehand.
This actually reminds me - Baupost has a hugely respected RE investment arm. One of the founders of Baupost, Poorvu, wrote probably the most recommended RE book on WSO, The Real Estate Game. Also, they are known to pay HF style comp. A woman that worked in the RE group waged a high profile discrimination lawsuit a few years back. In that reporting it was revealed she was paid 8 figures one year. Think she was in her thirties at the time.
i know the article you're talking about. it stated that she was paid a $3.75mm bonus. Nothing to sneeze at for sure, but not 8 figures
Canadian here. Not pure HF style, but in Canada Sandpiper Group (Vancouver) and Persima (Montreal) are real estate focused shops that do public equities primarily.
On the comp from Baupost, King Street, etc. any idea what comp would look like in real numbers? Let's say for first 1-2 years of working at the fund. Thanks!
Angelo Gordon. Huge fund ($50 billion) with every kind of real estate you could want (rmbs trading, a reit, they own physical buildings, cmbs trading, net lease of office parks, etc etc). Good WLB and comp is good.
While a great place, I just didn't consider them a HF type firm. I think they're more of a PE firm given the way they operate. They're also in PERE 100. I heard comp is below high PERE pay for Analysts and Associates, but can't confirm. Any idea on comp figures?
I joined there fairly senior so I'm not really sure about pay for analysts and associates (plus I left a few years ago, so things might have changed). But at least for me, they paid very well. After several years there, I decided I was ready to leave, but ended up staying for two more years cause it took that long to find another opportunity that could match what Angelo Gordon was paying me.
That was before covid, though. Quite possible things are different now.
ooooooh that sounds nice
Thanks guys! This is super helpful!
Also Sculptor Capital (formerly Och-Ziff)
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