How substantial is promote as a portion of total comp?
I understand there’s a lot of nuance here and that most promote has been wiped over the past few years. But as it relates to a normal hiring market, how much of total compensation is tied to promote generally?
I’m trying to see if making the jump to the buyside is worth it (I’m currently at a top IS team). If I left to a top REPE shop, where would my all-in comp including promote be at the mid/senior level? If I make 1M in cash comp per year in brokerage, it’s seems like it might make more sense to stay put. Would appreciate your thoughts.
How senior? Depends on size. I'm hearing right now that Director / MD level at mid-sized funds are in the $700k - $800k cash comp range (but very hard to find spots right now) plus promote which these days is worth $0. If you really have a slot to make $1m a year in brokerage I'd probably go that route. You might make more if you can find a MD position in a REPE fund but it might take you a lot longer to find it (if you do at all) and promote could end up worthless
What do you consider a mid sized fund? How many YOE for Director/MD?
Roughly $750+ million or larger. Anywhere from 10-30 is what I've seen. The range is huge.
Right now 0% but not because I don’t get any carry. The promote in all my deals is long gone (wrote it off in my head Q3 2022) :(
Amen, brother. I have ownership in at least three developments at my last company that I don't expect to see a cent for.
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