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
Please tell me your 2 years experience is post business school/IB? Or else tell me why you are badass.
Relevant, on-going mega-thread:
https://www.wallstreetoasis.com/forums/what-is-your-compensation-in-rea…</a">What is your compensation in Real Estate Finance?
Crazy how no one uses the search function.
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.
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.
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.
Nice, in IB they work on billion dollar deals that make the news and get paid 75% more for it.
Where are the people making 200k+?
The IB forum
Get out of here. Your account is just a poorly executed rip off of mine
Market: Dallas Experience: 13+ Role: Founder Fund Size: 250M+ Salary: 0 Bonus: 0 Carry: 100% Hours: When I feel like it.
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...
...what?
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
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?
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 (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 :)
Market: NYC Experience: 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
Tool: 100%
Experience: 9 years (all buyside RE), plus HBS/GSB Asia Acquisitions Firm AUM 10b+ Salary: 300k Bonus: 50%-150% of salary Carry: None.
Experience: 4 years RE Role: Analyst (Acq/Dev) Firm Size: $5B AUM Salary: 135K Bonus: 25% Carry: N/A Hours: 50-55 hours/week
two new data points for West Coast major market offers:
6 years experience--2.5 brokerage, 3.5 development.
Market: Based in Boston Experience: 6 years Role: Director of Investments for a FO Firm Size: $200M AUM Salary: $175k Bonus: 100% of Salary Carry: Yes Hours: All of them
Some quick notes on MF REPE. All the megafunds normally interview all the real estate investment banking analysts at BB at the same time (aka "on cycle") several weeks into their first year on the job. I can list at least 20 REPE funds that recruit BB investment bankers that pay well over 200k (even 300k) for associate positions (2 years of IB experience at BB).
Based on my experience with headhunters, TPG, Baupost, Sculptor Real Estate, Davidson Kempner pay well over 300k for first-year associates. BX, KKR, Starwood, Centerbridge, Apollo, Oaktree, Cerberus, Fortress, Bain Capital pay between 250k and 300k. While Carlyle, Westbrook, Northwood, Ares, Rockpoint, CIM, Lone Star, KSL, and Brookfield are on the lower end with slightly over 200k for first-year associates.
Just got a job offer. Is about 1.5x my current all-in.
Market: West coast domiciled, invest nationwide
Experience: 8 years (director)
Role: Acquisitions, programmatic JVs
Firm Size: >$10bn AUM
Salary: $300k
Bonus: 100-150%
Carry: zilch
Hours: 40-50 hours/week
Why does it seem like RE hasn't received the same bumps that all the other finance roles on the buy/sellside has seen? RE has been on a bull run for the last decade, wouldn't you expect RE comp to be at least within 80% of like corporate PE?