Hey Monkeys,
Wondering if anyone who's been in an equity position at a lifeco can talk about culture/comp/where they exited to. I'm currently working at a sponsor as an internal capital markets guy, where I finance deals once committee has approved the deal. This is about 70% debt or structured/preferred equity and 30% JV equity. I just graduated my MSRE program a few weeks ago and am really looking to target moving back to the equity side full time and have mostly been chasing private equity acquisitions opportunities.
That said, I just got a call back for a second interview for an associate / senior associate level position with the equity group at a LifeCo. I'm a little less than all in because this isn't a top LifeCo but more of a second-stringer with a smaller CRE portfolio and would require relocation to another market (which I'm not opposed to but not completely thrilled about either). Having said that, it has gotten me thinking about the possibilities at other LifeCos and if I've been unfairly not paying enough attention to equity roles at non-PE firms.
Can anyone who's been in an equity role at a LifeCo talk about comp, culture, and exits? Did you feel like being at a LifeCo was a good way to learn to see the whole chessboard and become a more sophisticated investor?
Thanks for the mention latinbanker
Comp., culture, exit. Let’s do this.
So..comp
Comp will be about 20% below REPE shops. Generally though, where as REPE may have higher high and lower lows - Life Co pay will be pretty consistent year to year. From analyst to senior associate I would expect (in the ballpark, for a high COL city) to start around $90,000 all in and progress pretty quickly to $110-$120K all in through analyst years. It’ll continue to ramp up quickly whereas the top end of senior associate will be around the $200,000 to $215,000 mark. (Starting senior associates will be around $160,000-$170,000)
Culture:
Generally fantastic. You’ll have your late nights, tough weeks, and weekend work. When I was on live deals I worked 6 days per week. But generally, Life Cos are chasing fully marketed deals so I had great visibility into my next few weeks. If I worked weekends (read: my 6 days per week) it was more because I decided to go home at 730 every night that week knowing I would put it 3-5 hours on Saturday or Sunday. When I wasn’t on a live deal I could leave at 5 on the dot. Generally I worked 5 days per week. Monday to Thursday was until 630/730 PM. Friday the office was a ghost town by 5:30
The people who get into Life Cos later in their career generally don’t leave. Call it a life style firm. Hours are good and compensation is consistent. It’s harder to move up as people don’t leave, but it’s a great place to make a solid living and work reasonable hours. Generally people will care about their lives outside of work and want you to relax and enjoy as well. Some of the Life Co’s pay NY/SF salaries in their Atlanta/Chicago/Texas/Carolina offices so these people get even better life style due to the cost of living. Definitely be advised Life Cos are as corporate as real estate companies come. Highly structured and processed. If you don’t do well in structured environments or don’t want one, definitely determine in your interview how structured and processed this firm is.
Exit:
Great. You can easily leave to operators, developers, PE shops, etc. Everyone will know that because you worked at a Life Co you saw tons of deal flow and the reps that gives you provides great insight and feel for deals. People will pick your resume up because of it. You will be able to go where you want, and you never know - you may just stay.
Happy to discuss further. Let me know what you want to hear more on or questions you have. I’m typing from my phone and can add if you want.