Average market pay for REPE vs traditional PE

Curious if anyone has any insights on what pay you could see working at a large PE shop / MF on their real estate team vs traditional PE. Is there a large difference in pay between two first year analysts or even at the associate/director level for someone with the same amount of time spent at the firm, just differing teams? I know a large percentage of kids in UG are gunning for the traditional IB -> PE, so I’d assume there has to be a pretty sizable difference in overall pay when you compare say an associate on REPE vs traditional PE, both being at the same firm? If you had to ballpark it, would you say all-in pay is maybe 10-20% below for the scenario above?

 

Based on the most helpful WSO content, the pay between a large PE shop and traditional PE can vary significantly. It's not just about the type of firm, but also the role and seniority level.

For instance, I started my career as a financial analyst for a big developer, earning $30k/year. Then I moved to a mid-sized property owner, where the pay was slightly better at $36k/year. After business school, I worked for a real estate PE fund attached to an investment bank, where I earned $120k plus typical bank bonuses. Later, I worked for a big financial conglomerate, earning a base salary of $250k plus bonuses.

However, it's important to note that the work didn't change all that much across these roles. As an analyst, it was mostly spreadsheet work, and at later career stages, it was more about deal management and deal sourcing.

In terms of REPE vs traditional PE, it's been observed that beyond the top 25 REPE shops, corporate PE professionals tend to earn more at the same level. The majority will work in the middle market, where the corporate PE professional will likely outearn the REPE professional.

So, while there can be a difference in pay, it's not always as clear cut as a set percentage. It can depend on a variety of factors, including the specific firm, the role, and the individual's experience and skills.

Sources: What's the catch in CRE?, Why do so few go into Real Estate?, Differences between CRE vs REPE

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Sorry I misunderstood the question - idk if there’s a difference. Just understand that you’re splitting hairs. You can make millions in mega fund REPE - don’t sweat over $25-$50k as an associate. It’s arrogant to say but even $100k per year is nothing in the grand scheme of things 

 

If you are talking about PE at megafunds, the pay is the same, all the way through senior levels. It’s a specialized skillset and asset class, there’s usually less people gunning for it because wso largely functions as an echo chamber and students aren’t exposed to it early on. REPE seats are far rarer than corporate PE, so you won’t see as much about it online.

At UMM or smaller funds, I think the pay can diverge at the junior levels, but from what I know some seniors still consistently make multiples of what their corporate PE counterparts make.

 
Most Helpful

Minima dolorum id officiis ut culpa quidem aut dolores. Alias repellat aliquid autem libero. Inventore nobis et hic cum blanditiis ut quidem dolor. Nisi et officiis nihil vero provident.

Enim eveniet qui et nisi repellendus aut sit. Aut quasi sit ea atque. Quo consequatur blanditiis sit ut. Consectetur autem dicta dicta et. Cum nulla esse eum possimus voluptatem voluptatum ipsa.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 11 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 06 97.7%
  • Lincoln International 04 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (81) $263
  • 3rd+ Year Analyst (12) $184
  • Intern/Summer Associate (32) $172
  • 2nd Year Analyst (60) $169
  • 1st Year Analyst (193) $159
  • Intern/Summer Analyst (142) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
kanon's picture
kanon
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”