REPE vs PE FoF
New to WSO but was curious to hear what people thought on taking a role in REPE vs PE FoF out of college. I was too late to the IB process for analyst positions, but since my end goal is to do PE, I figured I would be able to try and lateral into a boutique or MM IB after a year and then make the move to traditional PE role. The REPE position is a position gaining direct investing experience but I just don’t much about the real estate space. Thoughts? Or would anyone be able to provide more detail on comp/typical day/future of REPE as compared to regular PE
True fund of funds? Or secondaries and co-invest? Are you open to working in a secondaries group at a bank?
At a high level will depend, but I can definitely see a strong FoF analysts getting looks at decent Lev Fin groups. You already understand the business model and have junior contacts.
However you need to be backing strong PE shops AND truly allocating and not being a consultant though.
The firm invests through each vehicle: FoF, co-investments, and secondaries, so think HarbourVest, StepStone, HL. The offer I received was to work in their FoF group but everything I have read leads me to believe exit opps would be difficult from this type of position and I risk getting pigeonholed. Ultimately my goal is to work on the buy side. The REPE role gives me this opportunity directly out of undergrad but I have also heard it is considerably different than traditional PE.
I would take the REPE role - will get a much better experience than FoF. If it’s a true REPE role at a leading OPPORTUNISTIC fund, you skip the 2 years that RE coverage bankers go through. you’ll learn about structuring, execution, asset management, risk, negotiation etc....
It’s definitely a reputable and true REPE fund in a market outside of NYC (think Dallas/Atlanta/Denver). Would you be able to give any detail on how pay scales over time as compared to regular PE?
it’s really hard to give a blanket statement about pay. unlike IB - the pay really differs between shops. Ultimately pay progression comes down to fund size, strategy and personal performance.
I personally think long term REPE can pay better than LBOPE as I think it’s easier to start up your own repe fund and establish yourself. If you see yourself working for someone long term - funds like Starwood/BX will pay the same as MFPE
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