REPE compensation

Hello, 
People who works in the industry - let's get done with it once and for all:
what is your / someone you know compensation?


Market: (Where you based, not invest)
Experience: X years
Graduate degree: (if so - which one)
Role: 
Firm Size: $ X B AUM
Salary: $X
Bonus: Y%-X% of Salary
Carry: 
Hours: X hours/week


Let's get it boys!

 

Market: NYC

Experience: out of undergrad

Role: Acquisitions

Firm size: 20-40bn AUM

Salary: 100k

Bonus: 40-70% target range

Hours: 60-80 hours a week (usually closer to 80 than 60)

 
Most Helpful

There's been previous posts like these, but I think it's a good thing to get a new one going for where the world is today which is very different than the other posts from a couple years ago.

Market: Sunbelt (HCOL for a sunbelt city but not NYC/LA)

Exp: 8 years, no MBA

Role: Acquisitions and Asset Management

Firm Size: 1B AUM

Salary: $170k

Bonus: Last year was $100k, I'll be expecting the same or better this year and will be pushing to start having 100% bonus targets

Carry: 2.5% of a fund which should average to be about $100 - $150k a year if things go to base case but mine doesn't vest and our first payout is still years away so I value it close to $0. Especially with where we are in the market right now, I sort of expect the upside on anything we buy now to be limited, so I'm not expecting a big pay out here.

Hours: 20% of the time is 25 - 40 hours, 50% of the time is 45 - 55 hours, 30% of the time is 60 - 80 hours. We also work remotely 2-3 days a week. 

I've talked to recruiters/peers and have found that working in acquisitions for a fund at the 8-10 YOE is now pretty commonly $175 - $200k salary plus 100% bonus expectation (potential to beat it in a killer year) + some form of promote. This is almost regardless of your market, though most of the funds are obviously going to be found in the big city, HCOL markets.  I think this is up from a couple years ago when it was more like $150k salary + 100% bonus.  This does not apply to operators, developers, etc. Specifically referring to funds. I find that operators are more like $140 - $170k salary, 40 - 100% bonus depending on the year, and a more meaningful piece of promote that pays deal by deal so you make money over the years instead of one large payout at the end of a fund and could be enough to give you a 7 figure year on the best years (think maybe once or twice a decade if you're lucky) but other years are worthless. 

 

Exactly. Get to invest in other industries as well (firm also has a traditional PE arm and fixed income team, so I've been able to throw money into a car wash and garbage distribution roll up as well). Pretty sweet, and I'm not capped on my contributions. Just lucky to have saved up a lot since I've been working since I was a kid, and made a killing off of small cap upstream O&G plays during COVID in college

 

Market: California 
Experience: 10 years
Graduate degree: N/A
Role: Acqusitions 
Firm Size: $ 4B AUM
Salary: $200k - will push to $225k at YE
Bonus: $250k - will push to $275k at YE
Carry: 1% of fund / 1st promote was paid out in 2021/2022 at $1m / value next two fund at $1.5m - $2m with distributions every 3/4 years.
Hours: 40-50 hours/week

 

No two days are the same, we all wear a lot of hats. Right now for me, it's more focused on asset management and capital markets, while last year it was non-stop acquisitions mode. Part of my carry total is fees which are coming in already, while the other chunk is fund carry. I will know how much I believe in the latter by the end of next year when we are done with pre-dev on all the projects in the fund and we presumably have more clarity on the economy and the brave new world as a whole. As of now I'm pretty confident as all of our buys in the past year have been at an excellent basis (distressed deals) and our exits are 5+ years from now. If markets are still fucked at that point well, then we're all pretty fucked.   

 

Can someone cue up a jumping to concusions meme. Since you don't seem to understand how carry works let me clarify. 

As of today I valued my carry at 150-600k annually. This is my realistic 2sigma range, doesn't mean it can't end up outside this range whether higher or at zero. Most of that carry will hit in one year when the fund is fully realized. So no I didn't make 900k in my 8th year out of school. You must be mistaking this for the bond traders forum. Though I will concede one of my friends got his first 7 fig carry payout at 30 but this is NOT typical at all.