Joining a 2-person REPE team?
I have a potential opportunity to join a new REPE in a secondary market that has a few hundred million dollars of holdings in primary and secondary markets nationwide. The only two employees are the partners that founded it. Have worked in REPE for just over a year as an analyst at a niche firm in a tertiary market, and am concerned about growth being capped at the associate level (VP is very young and not likely to leave, would be 10+ years before that position is open and little chance for new opportunities to be created within).
Is it worth the risk to move to a larger market with a much higher chance of growth, but to a much smaller firm? How risky is joining a new REPE? The partners seem to be rockstars with very strong deal experience at previous firms.
Not the primary factor but worth considering as well: expecting salary to be slightly higher than current role after the cost of living adjustment.
Any input appreciated. Happy to clarify on anything if needed.
High risk, high reward. May be able to get a piece of deals/unique compensation package at that small a firm.
If you believe in these guys’ track record and can negotiate some sort of carry/ability to invest in the deals/low rate loans on the firms book to invest in the deals then that could surely be very interesting.
I personally accepted an offer to join a 3-man REPE of a similar size to your posting. Reduction in comp for first 2 years compared to my MF REPE, but negotiated carry in Year 3+. Compensation would be also directly tied to my production and ability to add value through sourcing/originations as well as underwriting. Just another data point from someone who’s decided to go that route.
How is it so far? I guess with small shops you don’t get that brand pedigree, but it just seems really interesting to work at small place that you can help build.
Also curious about this. Considering moving to a newly founded firm in a couple years for the same reason of wanting to help build the firm and be able to get carry as soon as possible.
I think the tradeoff with a small firm is less brand recognition but often more responsibilities and greater career growth. When I was working construction I was working on a much smaller team compared with some of my peers who were working on much higher profile projects, but I was wearing more hats and I feel it gave me better positioning within the firm/industry.
Is that something you negotiate upfront or after working in the role for a while?
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