Banks pay better than REPE
Is it me or are balance sheet teams at certain banks comping better or the same as REPE shops (excluding Blackstone and the Carlyle’s of the world)?
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Can confirm. In lending with one of the major banks and there are very few exit ops where I can meaningfully increase comp. Most opportunities would have me taking a haircut and a handful would keep me at the same comp.
What's your comp situation look like
You don’t get into real estate private equity for the payout, you do it for the poetry written in concrete and steel, for the quiet thrill of seeing potential where others see dust. It’s long nights under flickering fluorescents, spreadsheets lit like scripture, chasing a vision only you can see. Like Chapel on the mound, whispering “For love of the game” into the roar of a stadium, you steady yourself against the chaos—interest rates, risk models, broken leases—and play on because something in your blood sings for it. This is a craft, a calling. Deals are like innings. Some are clean, some are brutal, but each one writes another verse in the long, slow epic of legacy. And when the numbers don’t pencil, when the returns fall short, the only thing that keeps you coming back is love. Real, relentless love—for the game, the grind, the glory that can’t be measured in IRR.
I know that you are using AI to write these responses
Some of them. Usually ChatGPT is too corny for even me though so I have to edit things.
It's a pretty shitty tool, but, well, I primarily post shit...
This one was all me: https://www.wallstreetoasis.com/forum/real-estate/fired-for-unprofessio…
I mean, without any data or even parameters to compare, yeah it's just you.
Yes, I've been in BB lending for some time and outearn my non-MF peers pretty much YoY
what's market for an Associate/Sr Associate at a BB? I'd imagine base is in line with REPE, but the bonus is where you start to see the comp pool diverge.
would imagine balance sheet group is 150-200k base. Bonus would be 30%-50%
Confirming salary but bonus seems to be closer to 25% for average person, top performers are closer to 40% but I’m sure there could be some higher.
Depends on the bank. Some banks put their CRE people lumped in with IB so the bonus is better. Not all do this so it really just depends.
Do people ever move from RE IB to CRE within the same bank for lifestyle reasons? If so, at what level is this most common?
I haven't heard of that below the VP level and its mostly RE IB & REGAL guys going to CRE as deal originators to cash in on their network.
The most common IB to CRE pipeline is the hardos who are trying to get into the MF's
This can’t be true? Don’t the top REPE funds pay $300K+ for 1st year associates? Most of these kids are two years out of banking making$300+.
It isn't just top funds. I'm an ASO 2 at a MM fund in NYC and cleared just over $300K all-in last year ($150K base + 100% bonus). In terms of comp, am I a year behind ASO 1s at MF REPE shops? Maybe, but it's a worthwhile trade to work ~60 hours/week and have some semblance of life outside work, IMO, versus earning $20K - $30K more and working A LOT more
I’m an associate in Chicago making $150k all in
I think the thing is most Boutique/Mid Market REPE does not pay well until you are very senior(past VP level)
It's common for analysts to be making 120k all in and associates to be making 150k all in which is similar to what Balance Sheet lending pays imo. Wouldn't be surprised if bonuses have been abysmal at many shops with low deal activity and low likelihood of crystallized returns the past year or two. Most funds that deployed their capital in 2021/2022 are going to have middling returns. Even amongst the PERE 100 a lot of the shops don't pay top of market. Not to get off topic but the grass is not always greener leaving as well. I know a few people mid career that left good gigs to do their own deals the last few years and are dead in the water from the down market. I would not be surprised to see more people leaving real estate the longer the current state of the market persists/interest rates remain at their current level.
Also what do you consider the line for REPE at? Do you consider any front office function Acquisitions/Portfolio Management/Development/Asset Management? Usually acquisitions pays the most with the rest coming at a sometimes substantial discount(Some shops PM might get paid top of market as well). GP shops, any shops that raise funds, shops that manage LP capital, any third party manager, insurance companies, Private REITS the economics will be different at each. A handful of shops in each bucket pay well.
Agreed. But BS lending is boring. When at a table with other RE professionals, the balance sheet debt person like that kid in grade school with not a whole lot to add to the group conversation. Having been on the equity side all my career, I have a bag of stories of deals that went right and wrong given how in the weeds I am as owner of the project. In my opinion at least and in no way disrespecting my debt side peers. You can definitely make a good living if that’s what you’re after. Debt funds are a different story.
I guess if you have nothing else to your life but work.
For me, money talks and I have a very fulfilling life outside of works so I’m considering moving to balance sheet from REPE
if trying to be "cool" with your war stories (which always have a lot of hyperbole and everyone knows this whether it's debt of equity war stories) is a major factor in choosing a career path, then sure. But even on the equity side you have these "tiers" where the guy developing or acquiring stabilized or light value add multi where it's rinse and repeat all day along will seem "less cool" than the guy acquiring and developing boutique hotels or data centers. So this is a slippery slope if "coolness" is being prioritized as you can always have someone who might be "cooler". End of the day, the debt side has tons of war stories (again there will be hyperbole) as well as we all listen to them ad nauseum. Also, war stories does not pay the bills. Debt side especially at the big banks offers stability, good pay given the hours worked, so a good work life balance that allows you to have a good career and also spend quality time with the people you care about.
Everyone has different goals, for me, what I do for work is not my entire personality and it does not define me. So a career that allows me to have good pay and a good work life balance where I can also do other things that I enjoy is a great way to truly live. Afterall, we all have to live lives that is truly worth living.
Of course. Everyone has a different goal and should be able to choose their priority like I said. You just can’t deny the difference of level of details people dive into as equity owner versus lender given the nature of the work. Its not about cool, it’s about how in the weeds you want to be in RE. No need to justify why you choose what chose or be insecure about it.
Thats my point as well. It's just a different job at both the day to day and high level. There is a difference in the level of details for sure as I previously mentioned it's a different job. The debt side really gets in the weeds when it comes to return on regulatory capital, capital allocation (if it's a balance sheet lender), syndication or working with a B note lender, etc. There is also securitization which has a lot of nuances. The equity side does not care whether the senior loan gets split into an A note and B note or whether the senior lender syndicates a portion of the debt to other lenders post closing or what the return on regulatory capital is for the lender. If it's CMBS debt, the borrower cares about the pricing and not the mechanics of how a loan gets securitized, the road show, bond buyers, etc. And similarly, the lender also really does not care that you are modeling adding undermount sink & gooseneck faucet package and quartz countertops in all 2 BD's but not the studios and how that impacts rent premiums. At a high level sure, the projected rent premiums will be underwritten but the granular details will not be scrutinized. The equity side should care about all that, the debt side really should not as they get in the weeds about just different things. And you are correct, given the different nature of the jobs, there is absolutely no reason why someone on the equity side should be insecure about the stability, the higher base or better work life balance that someone on the debt side might enjoy. Similarly, no reason for someone on the debt side to be insecure about the potential for a greater comp if there is a promote, etc that someone on the equity side might enjoy.
Ignore title (big on privacy), I'm associate at a non MF (fund size ~$1-3B in equity) and cleared $400k all-in fwiw (it was cool). My hours are somewhat comparable to banking though. 70-80ish on average, some weeks a bit better, some around the clock.
NYC?
hours don’t seem awful for that size
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