Actual Compensation for REPE?
There may be better questions to ask as a student still trying to get his foot in the door, but I want to be informed. I'm a junior trying to enter the traditional private equity or real estate private space. I know what traditional PE compensation can be based on WSO and M&I, but REPE has numbers everywhere.
I have seen numbers as high as 200K for the first years and as low as 40k. With little to no middle ground, does anyone have any legitimate information regarding compensation for this space? What does first-year pay look like? Granted, I know the firm you are at plays a role, but there is so much spread between all the numbers I've seen online that it looks concerning.
I'm based in the PHL area, and yes, I know you won't be raking it in your first year. I want to have facts over a guess.
Honestly it depends. If you land a top role at a big fund then you’ll obviously be making way more than if you land a loan asset management role in some back office. Both jobs are considered CRE. 1st year analyst at my debt fund makes 75k +20% target bonus.
It scales from there though because if you are on a production team like me then you’ll see a much different comp structure as you progress. I’m 3 years out of school and my base is $90k + 80-120% target bonus. Keep in mind these numbers are for NYC area so I would deflate these for philly
I understand and appreciate the response. I know there are some firms in Philadelphia but have 0 idea what they give out.
I am based in Philly. We pay our analysts around $100k base + 20-30% bonus, as well as a small amount of fund level carry.
VPs are around $200k base +30-50% bonus, and much more meaningful fund carry.
Yep totally depends on firm size/AUM. Typically, most non-mega fund RE funds will pay you somewhere in the range of $70-100k base + 20-30% bonus for first year analysts.
Mega funds are likely in the $90 - 120k base + 20-60% range.
Obviously each shop is different and also depends on location, size, etc, and often times groups paying much more will come with additional hours/workload.
appreciate the response
That is similar to what I've been told and that a firm size and aum play a part. I would imagine that the position you hold would make a difference no? like asset management versus an analyst.
Asset management is a function within real estate, analyst is just the title. You can be an analyst doing many things including asset management, acquisitions, valuation, investment sales, leasing, underwriting, etc etc. Yes, there is a difference between these roles in both pay and function, and it varies based on a plethora of factors including responsibility, hours, firm size, and deal size. I’d highly recommend watching videos from a channel like Break Into CRE for more info as they break down what the roles are and how they differ from another.
Generally speaking, you see such a wide range in salaries because “CRE” is a very broad field and term. You might have a rich neighbor who owns a strip mall somewhere and that’s technically Commercial Real Estate. People who work in valuations still do “CRE” and so do developers, leasing brokers, sales brokers, debt brokers, and lenders. Before answering what “first year pay” is, you’ve gotta ask a more specific question about what type of role you want to get into. Again, would highly recommend Break Into CRE or any similar channel to learn more.
MF acquisitions will pay ~$225k all in comp ($110-120k base; 60-100% bonus)
Asset management will pay ~$175k all in comp ($110k base; ~50-75% bonus)
Source: Analyst at MF (ignore title)
Do you know how much associates are pulling in TC? Sounds like a KKR / BX
Cool
Not MF but one step under it. Made 180k all in as a second year analyst.
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