REPE or Fully-Integrated Operator?? Need advice
Currently an associatein major Southwest Market (2.0B+ AUM) making $100k, 50% bonus. Exposure to all asset classes and plenty of volume on a lean team of around a dozen. Reputation, culture, returns are good but another 3 years until carry comes into play. Lots of smart people wanting a piece of the pie.
I have been offered an associate role at a fully integrated operator. This firm is expanding out of their first market (ample success there) to a new market within the region and the role would be a direct report to the partner of the new office.and track record with a creative mixed-use focus. Partner's goal is to get to $450M of deals in the next 3 years, currently $150M being executed on in the market. Offer is $105k, 40% bonus, 2% carry on existing and new deals. Carry is realized 50% at sale and 25% on the following two anniversaries. Track record of returns makes this carry very valuable, especially for someone with 3-4 YOE. Would be helping grow the office, hire a larger team, help run point on future deal flow. Carry would increase with performance/responsibilities.
Seems like a risk willing to take – near term recession could affect the value of the carry so I wanted to get other's thoughts on the situation. Am I overthinking?