PERE: What's your carry?
Would be interested to hear any disclosed figures + outline of AUM of your fund. Also after which year it is attainable. Thx
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Bump. Curious as well
I have 10% on the carry at a boutique RE fund based in the US and funding/building in Europe, only. Only that high due to being a partner.
Thanks. I'm currently at 1.5% at a London PERE Fund, as an analyst. Aspring numbers you have there.
Do you have any skin in the game and if so, is it a like for like contribution? See a lot of recruiters these days with carry in the advert (in London too) but always thought it'd be strange for an analyst to have pockets deep enough to contribute. (dependant on size of fund too of course)
This is fairly standard if anyone is wondering.
Curious, what were your qualifications, or how much experience did you have to come in as or get made partner? Dont want to sound like a dick, generally curious.
If you're speaking to me, that's not being a dick. I own a CRE Mortgage Brokerage, lone wolf. I merged my firm into my client's (now Partner) development firm and wrote the plans/found the seed capital for the fund. My job is to raise capital and manage our LP's. I'm nothing special, no college or MBA, just lots of failures in companies I tried to start and people seem to like how I look them dead in the eye while asking questions to make them feel vulnerable...
Bump. Interested to know this as well.
5% promote on deals I source or large-scale development/repositioning projects I lead. At the VP level.
How exactly is your promote calculated? Simple 5% of profits?
Is carry on deals you source or any deal the firm buys?
Thanks.
For me it is any deal the firm successfully exits
Got it. So your carry is coming from the 20% profits over the hurdle rate on sale?
How often does your company sell. Around how many buildings in a year?
Typically carry is calculated at the Fund level. There are very few managers who are able to sneak in carry at the deal-level. (The ones who do it at the deal-level tend to throw in some pretty clever language).
Typical promote structure will have a preferred return followed by either one hurdle or multiple hurdles. I've typically seen the Firm/Partners receive 60-80% of carry with the remaining 20-40% reserved for team members.
Could people walk through how carry is calculated at their respective firms?
Multifamily development total cost: $50MM Assumes 55% LTC, 25% IRR, 3 year hold Carry % is a % of the $6.2MM LP contribute 95% equity, the waterfall IRR increasingly shifts returns to the promote.
Worked my way from an analyst up to a senior associate at a sf based REPE firm over 5 years. Started at 0.5% carry as an associate and now up to 1% as a senior associate. Am I considerably under market?
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