Megafund REPE Comp

There is a lot of ambiguity for REPE comp at the Megafund firms as this RE forum is so broad. I think it would be helpful for those of us who work at these places to create a thread with information such as below. By MF I'm referring to firms with latest fund sizes of ~$3 billion or more but I understand that this is arbitrary. I can start with the first comment below. Let's please try to limit this to REPE only.

Position:

Market (office location, not coverage): 

Years of experience: 

Latest fund size: 

AUM

Base: 

Bonus: 

50 Comments
 

Based on the most helpful WSO content, discussing REPE compensation at megafunds can indeed provide valuable insights for those in the industry or aiming to join. Here’s a structured way to share compensation details that aligns with your suggestion:

  1. Position: Specify the job title (e.g., Associate, Senior Associate, Director).
  2. Market (office location, not coverage): Indicate the city or region where the office is located.
  3. Years of Experience: Mention how many years you have been working in the industry.
  4. Latest Fund Size: Provide the size of the latest fund managed by the firm, approximating to the nearest billion if necessary.
  5. AUM (Assets Under Management): State the total assets under management by the firm.
  6. Base Salary: List the annual base salary.
  7. Bonus: Detail the typical bonus structure or percentage, if possible.

For example, a typical entry might look like this: - Position: Senior Associate - Market: New York City - Years of Experience: 5 - Latest Fund Size: $5 billion - AUM: $20 billion - Base: $150,000 - Bonus: 100% of base salary

This format will help standardize the information and make it easier for professionals to compare compensation across different firms and positions within the megafund REPE sector.

Sources: REPE compensation, Q&A: London REPE MF Associate, Let’s talk REPE Comp, Let’s talk REPE Comp, What is REPE?

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There’s an issue with your definition of mega fund. There are huge firms that pay like ass in RE. Not going to shame them but anyone who works in the industry will know the names.

Focus should be on firms that recruit out of Ivy+ schools at the analyst level and out of top RE analyst programs (Apollo, Ares, BX, KKR, Starwood and co.) and investment banking at the associate level. These firms will pay on par with corporate IB and PE. Just google “private equity total compensation” and you’ll get the numbers. The RE ranges may be 0% to 25% lower but nothing crazy (think $250k-$300k all-in vs $350k all-in at the first year associate level). I’ve personally been at exactly the middle of all of those online ranges and I’m up there in YOE.

You’ll find people hesitant to share specific figures because the industry is so small. There are only so many large RE firms and there are only so many associates within KKR’s RE equity team in NYC.

 

True — heard all-in comp is on par with other MFPE strategies. Do you know how the debt team pays relative to equity? Heard it’s the same, but hoping to have more clarity.

Also how is the pipeline from MF real estate debt as an analyst to MF real estate equity as an associate, and vice versa? I would assume it would be much more competitive than a typical REGAL IB or general IB profile, since the workflows are largely similar at the junior level.

 

Debt and equity compensation is about the same and close enough make the decision based on individual preferences vs compensation. Debt sees more transactions at a higher level while equity sees fewer transactions but more in depth. Debt has traditionally had slightly lower pay but slightly better WLB. Equity has been the belle of the ball but most firms are committed to building out their debt platforms moving forward (huge growth area).

In terms of associate+ recruiting, debt to equity and vice versa is easy in a normal to good job market but in a bad one, you’ll need to be doing the exact same job but at a different firm to land the offer. There isn’t enough data to say MF debt analyst > REGAL IB or vice versa. I will say a lot of groups really like the ex-IB backgrounds (mine included) because banks are really strong training grounds and you can at least guarantee that analysts from banks can grind, produce good quality work and have a decent level of professionalism. That being said, you’ll be more than fine from Apollo RE credit or BREDS.

 
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I was just contacted by a recruiter for a development associate at a mega fund. Any reference for what comp would be? Like I said , development associate at one of the largest MF’s, located in a tier 2 city (DC, Boston, Miami, Dallas). Thanks

 
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