How does REPE pay compare to PE and DL?
Does REPE pay the same at the more senior levels as PE and DL? I know at the junior level it’s not that huge of a difference but was wondering if that differs at the associate level and above.
The higher you are in a REPE/Corp PE firm the more your total comp is reliant on bonuses and carry. Obviously base salary is affected, but the majority of the high 6-figure salary are the ancillary compensation outside of base salary. When it comes to carry you're looking at the total capital allocated and performance so a VP getting carry at a REPE with $10B AUM and let's say their funds are getting an average 12% IRR is going to receive a higher carry amount and total compensation than a VP at a Corp PE firm with $1B AUM and getting an average of 15% IRR if they get the same about of points of carry. Corporate PE tends to get higher returns when economic environment is doing well and RE tends to get a solid return regardless of macro environment. You'll see more high end compensation in PE compared to REPE but REPE will have a higher floor and more stability.
There is also the fact that base salaries and overall comp is going to be dependent on size. It's hard for a LMM PE associate to crack $150-175K compared to a REPE associate at Brookfield getting that relatively easily. This is true for the reverse with a family office REPE investing in only STNL or 25 unit MF properties compared to Blackstone corporate PE obviously. Either way, you'll make a very healthy amount of money and you'll be in the top 5-10% of American incomes if you're earning carry at a REPE/PE fund so just worry about getting your foot in the door and doing a job you like.
Hey, honest question, what about Location? as far as I've researched REPE is really only mainly in tier 1 cities, CA,NYC,Chi
but what if someone wants to live in a southern state like TX,FL?
There are REPE shops in literally any major city in any state. Omaha, NE? Yep. Cleveland, OH? Yep. They can be found literally anywhere so you can explore a job in basically any city.
By DL are you referring to development? If so I can provide some color.
The top end Megadevs (Hines/Tishman/TCC/etc) are likely the ones most comparable to mega funds given at those firms you are not “in the weeds” and there are dedicated development managers separate from the “deal teams”. Smaller devs or more construction oriented shops are very different and have different economics so I can’t speak to that.
At my firm, an associate / post-MBA with ~4-5 YOE is likely making in the 250-300 range all-in, with maybe upside being a tad higher if you have some tenure since analyst level and get allocated some extra profit share on a deal. Definitely lags behind MFREPE and buyout, but hours are also considerably lower. VP’s I think start in the 300s and can get up over 500 in a good year. Unsure what the comp looks like for an SVP and my impression is the band is very very wide, as it is treated more like a principal / AP role at other firms.
At my firm at least, once you get up to the principal/MD/partner level, comp starts to track closer to traditional PE. Compensation is very much so uncapped if you perform. I think a principal can reasonable expect to pull in anywhere between 1 to 5 million depending on the year. MD / Senior MD should pull in >5 in a median year, but I know of a few at my firm that will net 20+ this year. At that point it really just is how well your deals perform. Know of a crazy deal last year that resulted in a >50M promote realized just by getting lucky with some entitlements and a land flip. Whole thing was 6 months from start to finish.
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