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!
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.
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
For another old man comp
Market: NYC
Experience: 10 Years
Graduate Degree: None
Role: UHNW Family Office
Firm Size: $10b
Salary: $190k
Bonus: Bonuses are based on team production (leasing/acq/capital markets) and have ranged from 250K to 450K the last several years but last year was 700K (thank you industrial market)
Carry: None
Hours: 40 hours a week
Well helps if someone above you or lateral has been laid off....Happened to me. More responsibility and exposure to my credibility in the market, since our street cred is everything as a relationship biz, they need to pay me more. Don't need a promotion in my case, but I need to be compensated fairly. We didn't meet goals. Well I did and exceeded them. Oh we are a team, well fire the lower performers and our revenue per employee got better.