Negotiating a REPE/REAM job offer
Hello Monekys,
Calling on experienced Real Estate PE or Development Professionals to help with setting expectations for job offer negotiations.
A little background: 1. Career PE professional with 9 years of experience. Had great experience having joined a new fund as employee number two so got exposed to a lot of areas; institutional fundraising, deal making, portfolio management, fund reporting etc.
For a number of reasons I would like to transition into a more operational role, chief among them is that I have found my true calling as an executive when I tried my hand at it.
Through my search for an ops role, I came across a more senior individual who has deep expertise in a niche area within Real Estate Development and Asset Management. At the moment can't disclose more info, but let's just say it's highly cash generative with potential for a large windfall.
He is offering a junior partnership position at the GP. Its a small GP with 4 partners, and the income streams are management fees + performance fees that grow over time cumulatively as more commercial developments are added to the portfolio.
Today at my current job, I have the luxury of knowing exactly how much I stand to make in terms of base/bonus/carry (fairly large %), vs. not knowing what to ask for.
Question for experienced RE Monkeys:
- How is comp structured at RE shops?
- What is a fair ask in terms of GP ownership? knowing the ownership % will mirror carried interest % unlike at my current job where the two are separate?
- What are the key issues that I should look out for during negotiations/agreements?
Thanks in advance.
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