Let’s talk REPE Comp

Always found REPE compensation info to be spotty so looking to share.

Market: NYC
Experience: 7 years
Role: Acquisitions
Firm Size: $7B AUM
Salary: $150k
Bonus: 70%-100% of Salary
Carry: N/A
Hours: 45 hours/week

 

Can we be clear, when we say "Market" we are talking about where we are based? not where we invest?

Market: West Coast Experience: 3 years Role: Acquisitions Firm Size: $2B AUM LP Salary: $80k Bonus: 25% of salary Carry: 25bps of promote in each fund (euro/global waterfall) Hours: 50 hours/week

 

You may want to elaborate on the promote/carry part of it as this term gets thrown around on the forum in a very interchangeable way when it comes to RE comp...

"Who am I? I'm the guy that does his job. You must be the other guy."
 

sure, I get 25bps of all carried interest coming to the firm. Not sure what else you need. we just round-tripped a half billion dollar fund, 25bps equated to about $120,000 (paid over 8 years). I did not participate in that fund since it was already fully invested when i started. For context, 25bps is on the low end, and this number increases with tenure and experience.

 

To be fair, I've read through that thread dozens of times. It has posts going back years, and includes lots of non-REPE positions. A lot of the info is useful, but I'd hardly call someone lazy for making a more specific thread. Based on all the replies this thread has gotten since being posted a few hours ago, it would appear a lot of people also find it useful.

 

It is, there just aren't as many people/openings in the industry in a given market as say IBD, so everything is proportional. Less spots > Less people going for it (in aggregate) > Less discussion about it. The way the jobs are filled/recruited is also very disjointed across the industry, so there isn't really 'a defined path' to break in.

"Who am I? I'm the guy that does his job. You must be the other guy."
 
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I came from a pretty decent school, everyone was super focused on investment banking. The real estate club was lifeless comparatively speaking. There were only a couple of us really set on it. I dont know why. I get to travel, tour buildings, tour cities, read, and read, and read, work with architects, contractors, lenders, engineers, brokers, and work directly for a partner (aka learn directly from a partner) who has been developing for 30 years, 1 year out of undergrad! My job is awesome.

 

Your comp is amazing. Especially considering the Texas market. The Texas market (Houston/Dallas) is one the lowest paid of major cities. Compared to carry, I would prefer your bonus of a portion of the acquisition fee any day of the week. You will get it within a year and it is fairly guaranteed. My carry on the other hand is only if I stay with a project, so, an $80k check after 4 years, and then one every year thereafter (assuming we do 1 or so developments a year) ... but it is all forfeit if I leave or they decide to fire me before a big payout.

 

Yea, I was very fortunate it worked out the way it did. I actually get paid at each closing. So I basically have a bunch of small bonuses throughout the year. They told me that the number of bps I get will likely increase 6 months to a year in. If I source an off market deal I also get 15-30 bps of the acquisition price. Pretty content with the way it worked out.

 

You are probably a little underpaid, but you should be most worried about getting good experience now so you can make the jump to VP earlier which will be a much larger delta in compensation than losing out on 10-20k now.

 

Market: LA Experience: 3 years Role: Everything Firm Size: $1B+ AUM Salary: $90k Bonus: 25% of salary Carry: 50bps Hours: 40-50 hours/week

 

I think the point is I’d like to see some people who went from banking to REPE. Curious what their comp looks like

Fuckin my way thru nyc one chick at a time
 

Market: Dallas Experience: 13+ Role: Founder Fund Size: 250M+ Salary: 0 Bonus: 0 Carry: 100% Hours: When I feel like it.

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 
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There are only two types of people in the world, those who can extrapolate from incomplete data...

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 

Still highly levered, but the pace of acquisitions has slowed. Prices are just too high right now and rents aren't keeping pace. Also skilled labor is incredibly hard to find at the moment so that cuts out a significant percentage of forced value add opportunities. Right now I pretty much just do accounting type work so I would say I average 20 hours a month. But I have other primary focuses at the moment.

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 

Based on these salaries I think the play is the following:

Grind it out in investment banking at a BB in the real estate group. You start at $150k minimum and make $300 by the time you’re an associate, $500 at VP (6-7 years after graduation). Then when you’re at the VP or director level, pivot to the c suite of a large but not jumbo REIT and you should be making close to a mil after stock compensation.

Thoughts?

Fuckin my way thru nyc one chick at a time
 

if you want to make a lot of money, you don't make it working for a company, you build one. There is no depth to the people in finance that are just here for the money. Are you passionate about anything? If you were really smart and interesting, you would go build a company, otherwise, you are just a drone.