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
Dec 02, 2018Dec 02, 2018
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Comments (414)
Market: LA Experience: 2 years Role: Acquisitions Firm Size: $9B AUM LP Salary: $110k Bonus: 20% of salary Carry: N/A Hours: 50 hours/week
Please tell me your 2 years experience is post business school/IB? Or else tell me why you are badass.
It's post-MBA. I had zero finance/real estate experience prior to my MBA and majored in English Lit in undergrad, so I feel like I'm in a pretty good spot atm all things considered.
Market: NYCExperience: 4 years Role: Everything Firm Size: $2.5B AUM Salary: $90k Bonus: 75%-100% of Salary Carry: 0.50% Hours: 50 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...
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.
Relevant, on-going mega-thread:
What is your compensation in Real Estate Finance?
Crazy how no one uses the search function.
Too much fluff on that thread and was looking for this to exclude brokerage.
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.
GP/Sponsor/Developer:
Market: Texas Experience: 2 years Role: Acquisitions/Development, Asset Management Firm Size: $2B AUM Salary: $65k Bonus: 15% of salary Carry: 200 bps of deals I work on cradle - grave Hours: 50 hours/week
How long is the cradle to grave life cycle for the deals you do though?
Looking at these total comp / hours ratios, I have no idea why REPE is not more sought after.
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.
There is a lot more perceived risk and career structure associated with real estate which is another reason that might deter some people.
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.
That is dope man, good for you.
Nice, in IB they work on billion dollar deals that make the news and get paid 75% more for it.
Market: Texas Experience: 0 Years (Start the job next week. First full time position out of school) Role: Acquisitions Firm Size: $2.0B AUM GP Salary: $65k Bonus: 1bps of total acquisition volume (goal for 2019 is >$300M. Puts my estimated bonus >$30k) Carry: 0% Hours: Estimated to be around 50 hours/week
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.
Market: LA Experience: 3 years Role: Acquisitions Firm Size: $50B+ AUM Salary: $90k Bonus: 15% of salary Carry: N/A Hours: 50 hours/week
This thread makes me less depressed, I thought i was underpaid. Made more out of college in banking...
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
Where are the people making 200k+?
Do you see many on here with more than 4 years of experience? Do you see many on here with a work week higher than 50 hours a week? We get to have a life, and the money gets pretty significant at 6+ years.
I think the point is I'd like to see some people who went from banking to REPE. Curious what their comp looks like
I'd say I average 50-55, but there are probably 2-3 weeks/quarter where that pushes 80 and I'm coming in on weekends. It's deal-specific
The IB forum
Duplicate
Get out of here. Your account is just a poorly executed rip off of mine
All the mega PE funds' RE arms and specific investors with large discretionary funds focused on opportunistic returns. This excludes core/core+ investors who are 'investment managers' vs. true PERE fund managers.
Can you help me understand this distinction of investment managers vs. true PERE fund managers and which firms you would categorize as the latter.
OP is for one, but I feel you on this.
I'll pile on:
Market: NYCExperience: 1 year in CRE (2 now but all current comp figures were set after first year), 5 additional years of non-related finance work experience Role: Everything Firm Size: $1B+ AUM Salary: $100k Bonus: ~30% of salary Hours: 35-55 hours/week with a lot of intraday flexibility
I'd be curious to know more about the 5 years of non-real estate related finance work you did.
I have about 5 years of non-RE finance experience, went to a WF/JPM/CityNational type firm doing CRE lending and now at a debt fund.
Would deff appreciate picking your brain a bit.
I think more so than anything here, I am surprised by the hours. Most 50hrs or less and for NYC too. Thought REPE in NYC you were looking at 60+.
Nice
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
your carry is only 100% if you employ no one
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
...what?
Commercial Real Estate Developer
If you want to be a troll, at least be a smart/knowledgeable one. Ignorant trolls are just a waste. Property cash flow + fees are additional income sources outside of carry. AM fees, PM fees, Development fees, Acquisition fees ...
yikes
How levered are you these days? Average hours/week on during a typical week? at your busiest?
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
Market: Dallas Experience: 2.5 years Role: Acquisitions Firm Size: $1.7B AUM Salary: $75k Bonus: 25% of salary Carry: No carry, but I am allowed to co-invest in all deals. We provide GP capital, so I get my prorata share of the promote (w/an additional 500 bps if it is my deal) Hours: 50-60 hours/week with alot of flexibility during the day
delete
Market: West Coast Experience: 5.5 Years in RE out of UG Role: Acquisitions Firm Size: $2B - $3B AUM Salary: $135k Bonus: 50%-100% of salary Carry: Negotiating now but hopefully 50 basis points of co-invest. Based on fund size worth roughly $400k Hours: 40 - 50 hours per week with 1-2 days of travel a week
Co-invest isnt the same as carry tho
That's a hot take, chief.
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?
lol
No
Commercial Real Estate Developer
Sounds easy, I'll just do that
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.
How many of us are ACTUALLY going to build a business from the ground-up. Every person that comes on the RE forum says their long term goal is to start their own firm, fund etc. But how feasible is starting your own firm if you haven't built up a meaningful net worth to invest in it?
How does building a meaningful net worth and becoming CFO/CIO/CEO of a $600mm market cap reit not set you for entrepreneurship?
Oh god this is the worst type of argument, he sounds like an Occupy Wall Street protester
I will host bets as house--straight bet with odds -250--that EliteStudent is a college freshman majoring in finance. PM me for venmo details. You live in absolute bananaland.
Everyone bet against him - not a freshman in finance.
Anyways, what exactly about that path is bananas?
Market: LA
Experience: 3 years
Role: Multifamily Acquisitions
Firm Size: $8B Enterprise Value
Salary: $90k
Bonus: 60-120% of Salary
Carry: N/A
Hours: 40-45 hours/week, sometimes 50, if we're in the trenches on a few live deals.
Market: NYCExperience: 2 Consulting / 3 RE Role: Acquisitions at IM/LP Firm Size: $5B+ enterprise value Salary: $110k Bonus: 40%+ Carry: None yet Hours: 45-50 hours on average; flexible office time
Can I ask everyone on this forum...
How did all of you get REPE jobs with less than 5 years of experience under your belt?
If you got in straight from undergrad, how so?
If you worked some place else, how did you break into REPE? Thanks.
REPE is one where you can get in straight out of undergrad. PE requires 2 years/time in I-banking. To get into REPE straight out of undergrad at a good firm, you need solid internships in real estate and you need to network. Except for very target schools (Penn), they don't recruit. Get to know headhunters who are used by REPE firms you like. Get to know recruiters at firms you like. Get to know analysts... etc.
REPESailor,
I think we are in the same market, and if not we are close. Do you have any thoughts on TREC?
Got it. Thanks a lot man.
Do you know of any good REPE recruiters? I'd really appreciate any input here.
I networked my ass off to get mine otherwise I would have never been considered.
Can you expand on on that? What does that entail?
Out of undergrad I applied to the all of the top 50 REPE funds, you only need a few to call you back and only need one to work. I studied Electrical Engineering in undergrad and expressed interest by working at a small fund during the summers.
Market (based): Berlin Experience: 6,5 years Role: Head of Acquisition Firm Size: EUR7B Salary: EUR 200k Bonus: 100% Hours: average 65-70, during quarter ends: 80-110 :)
Holy shit. In Berlin that is awesome. You can live like a king.
I consider myself as poor. It all depends on your perspective. BTW.: the Berlin „cheap" thing is over..
It's tough now especially given where the market is. Real estate doesn't give a shit about your degrees unless it's a big name shop. I have a law degree, MBA, and plenty of experience from development, acquisitions, and asset management plus Related on my resume and still had problems getting a legitimate offer. I was being offered $65k-$80k with crap bonus. Obviously carry is the name of the game but the industry is notorious for underpaying people. They said our average salary from our MBA class was pulled down because so many people went into real estate. I am currently doing M&A for a large retailer that includes RE acquisitions and trying to get back into REPE and it's almost impossible for me. Very frustrating situation.
I can attest to the pay. MBA grads and college graduates will compete for the exact same jobs and internships. The pay is also the exact same market rates (60-80K for analyst). There might be outliers but there is enough data out there to prove that a MBA does not give anyone a boost in real estate in either pay or the type of job you could get after graduation.
Market: Pan-Europe (based in London) Experience: 2 Years Role: Acquisitions Firm Size: $10bn+ AUM Salary: PS60k Bonus: 50% Carry: not allowed to disclose (pretty high for analyst) Hours: min. 65 hours
that's pretty good - matching IB on the comp side and the bonus is a bit lower but for your hours its decent, especially if you get carry.
carry at the analyst level?!
I gotta say the starting to mid-level comps are not great at REPE based on what I read in this thread
That's probably why most people are not willing to risk spending years working their way up in REPE
I am sure the top guys must make very good money, but not everyone can make it to the top
depends how loose your definition of repe is. I'm in nyc and based on friends, recruiters, comp surveys, etc. people are making plenty of money at those levels. I'm not as familiar with entry level these days, but at 5yrs in, you're a senior associate level (using bank ranks) and most of what I've seen is $175k-250k all-in. So not hard to see that into the 300-400 range as a VP-level running deals. this includes megafunds but it's not exclusive to them.
in general, repe gets higher pay at junior levels vs something like development, where the $ is very concentrated at the top.
and I can't imagine career risk is higher in repe vs something like trading, ER, etc. because a lot of these roles are facing structural challenges too. sure you still have cyclical risk in RE but welcome to investing. at least institutions are increasing their RE allocations and you aren't under the same sorts of fee pressures as other types of investment managers. this is a growing field.
that's not impressive consider its NYC, you can get that kind salary in DC with similar experiences working in banking/finance/tech
Btw the folks I know who work on Cmbs investing in NYC are being paid much higher than the figure you gave, axonic Capital, but they don't really hire anyone from real estate background
There is a lot more perceived risk and career structure associated with real estate which is another reason that might deter some people.
Any truth to the perceived risk?
Yes.
Firm is more PE than not depending on the definition you choose...
Market: SoCal Exp: 4 Years Role: Acquisitions Firm Size: ±5B AUM Salary: $90K Bonus: 15% Carry: Minimal - $20K/yr Hours: 35 - 50 depending on deal flow.
I suspect these figures will go up next year. I'll report back.
Question regarding Comp Expectations:
Coming from banking, one firm I'm looking at (GP side), I've heard these numbers thrown around: Base: 75-85k Bonus: 15% Role: Potentially come in as an analyst Market: Large metro (not NY or LA)
Coming from banking (2 years), this seems like a pretty steep drop in pay while I'm sure work-life will drastically increase. Does this seem like market comp?
.
That's not far off for analyst pay but probably a little below market with 2 years banking experience, However, the banking experience should help you get promoted to associate in a shorter time frame which should come with a pay bump.
The pay is pretty good if it's 2 years out of college, not many places offer you 100k in total comp at that age
Seems pretty fair from what I've seen (I'm at a GP). Not NYC/SF COL, plus as you said work life balance should be a lot better.
If that large market is Dallas or Atlanta it's not surprising
Commercial Real Estate Developer
Thank you guys - appreciate the help! My gathering with this firm is that coming in as an associate isn't likely which at first seemed strange since my people I knew came in as an associate either at the LP level (or super small shop if GP). Is this normal or something I should be concerned about?
Market: SoCal (not LA) Experience: 2 years GP, 1 year LP Role: involved in every aspect of the deal Firm Size: $850M Salary: $75K Bonus: 25% of Salary Carry: N/A Hours: 30-45 hours/week
Market: NYCExperience: Top Tier BB IBD SA Stint Role: Incoming (Corporate) Private Equity Analyst, Firm Size: >$100B Salary: 90,000 Bonus: ~40% Hours: Should be around 70-80
That sounds terrible
Tool: 100%
Commercial Real Estate Developer
Big bank takes little bank my guy
using a burner for this. at a HF doing illiquid RE investments.
Market: NYCExperience: 6 years Role: Acquisitions Firm Size: $15B+ AUM Salary: $130k Bonus: 100%+ Carry: can coinvest Hours: 50-60
What kind of investments? Equity? Debt? Do you partner with other groups? How involved with the asset do you get?
usually equity due to our return targets but debt too if stupid risk adjusted is there. always partner. we don't do day to day mgmt but we're involved similar to most repe shops in that way
How much of the $15B is allocated to real estate? Also suprised at the hours - does your team run lean?
no strict allocation - it fluctuates based on the oppty set. team is leaner than most pe shops I'm familiar with (not separated by region/prop type or anything). hours are good, but obviously there's no max if there's a complicated deal on a time crunch.
What was your background before working at your HF?
acquisitions at a big, more traditional RE investment group
This is what i've been waiting to see. LFG
Market: Pan-European (London based)
Experience: 1 year out of undergrad
Role: Acquistions & AM
Firm Size: $15B AUM - Value Add/Opportunistic
Salary: $65k
Bonus: ~50%
Hours: 60
Hey,
I'm a high schooler looking to break into REPE from undergrad. I'm in the process of applying to colleges and I saw that you broke in from undergrad. Was just wondering where you want to college and what you majored in if you're comfortable with sharing?
Thanks!
Honestly that looks pretty good!
Experience: 9 years (all buyside RE), plus HBS/GSB Asia Acquisitions Firm AUM 10b+ Salary: 300k Bonus: 50%-150% of salary Carry: None.
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