2023 Comp Thread RE
Let's hear where comp numbers are coming out to if you have them yet. I would post mine to get us started but have yet to receive.-Firm type/risk profile (repe, lifeco, developer, etc / core, core+, value add, ground up dev, etc)-Market in which you are located-AUM range-New Title & YoE-2023 New Base-2022 bonus % and $-Add'l comp
REPE (LP)
Major NE city
Funds are below $1B
Director (acquisitons): 8 years of experience
$200k base
$100k bonus
$2mm in long term carried interest between all active funds
This is solid, congrats on the carry - just a few questions if you don’t mind me asking
1. Is that 8 years of experience straight out of U/G?
2. How many hours on average would you estimate?
3. How long has it taken for your carry to reach that number and when do you think it will materialize?
- for context on this, I’m trying to get a sense of how long “long term” carry actually is, or simply put how long it typically takes to actually cash out on it. Im sure it varies based on numerous factors
4. Did you start in acquisitions or a different vertical?
Sorry for the interview and thanks in advance for any response!
No problem happy to help:
1. Yes - 8 years of experience since UG. Still in my 20s.
2. 45-50 hours. But I travel almost every week for a night or two, so not sure if you count the overnights (mostly dinners and drinks w/ brokers or GPs)
3. Half of my carry is tied up in funds that were invested 2-3 years ago, and is currently paying out into the next 2-3 years (so 6 year full horizon). Given that they are mostly multifamily assets, I consider that cash at this point. It will likely outperform given where the market is. The other half is currently being deployed. I should mention that on that first half, I renegotiated my % interest about 3 years into working for the company.
4. I started at JLL as an analyst on a investment sales team (mostly focused on industrial)
I think it is partly due to being an extremely equitable firm. Everyone is incentivized to stay long term and share fund performance, even the secretary has a few bps of carry and is invited to the IC meetings. The principals are not hoarding all of the promote/fees. This also helps with fundraising when investors underwrite the firm.
We have to do a better job of including hours in this. Big difference between 300k working 50 hours a week and 500k working 80 hours.
See below for my comp range:
*My carry is finally starting to pay out. I received $100K in 2021 and am hoping we harvest another fund in 2022. Irrespective of time, total carry I've been given should be around $1.0M. Could take 5 years before I realize all of this, but discussions are that I will continue to grow with the company as we raise more funds /acquire more deals.
Here is the playbook for our promote structure:
Development + acquisitions (core plus through opportunistic)
DFW
$80B+
MD; 4.5 in development; 9 years total RE exp
$240k base
$80-120k per year bonus
4-7% of GP on all deals. Should clear $750k next year in distro
Just landed this after 5 years at an institutional shop:
PERE Sponsor/Value-Add Multifamily
Los Angeles
$3-4B AUM
Director of Acquisitions / 7 YoE
Salary $225k, guaranteed move to $250k in 12 months
100% bonus
5% carry in GP promote on all deals in my markets (West Coast including Dallas/Houston)