Do the REPE arms of Canadian pension funds offers carry?
I understand the associate pay is ~100k + 50% bonus and I'm sure it progresses nicely as you move up. But after a certain level, taxes are a huge drag. Because carry is favorably taxed, I'm wondering if the RE arms of Canadian pension funds like Oxford and CF offer carry, and at what level is it offered.
Did they quote you that range? I didn’t realize it wasn’t in line with what they pay on the PE side
At analyst level they all typically pay between $80-$100k + 50%, I believe CPPIB is an exception and pays higher. But yes generally their PE groups pay better.
OP - no, pension funds are not shelling out carry to their employees. You're serving the public groups you represent in these roles, they aren't trying to be competitive with PE firms in that way. Compensation at the pension funds comes in two forms, very solid base and bonus as you scale up (senior guys are probably clearing close to $1M after bonus and execs more), and great WLB relative to their private counterparts.
In fact, pension funds aren't actually earning promote/carry on the vast majority of their deals. Generally speaking they are the LP in the vast majority of deals, and even when they are acting as GP usually its through a joint venture where they are not earning promote.
Thanks for the clarification CREnadian! The tax drag is real, then. $1M all-in comp nets you $500K after-tax. Great money for sure, but not the wealth-generating vehicle that traditional REPE/PE is touted to be.
Note that the pension fund's PE arms are the same situation.
If you go truly private in Canada you can make good money in both REPE and traditional PE and get carry, but generally speaking its not nearly as lucrative as in the US. There's a reason there is substantially less churn in IB here (aside from the fact that there's also just fewer opportunities).
What do Associates get paid? And is there a big discount between working in REPE vs working in the lending division of a REPE?
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