REPE personal trading
I’m an IBD analyst recruiting for REPE funds.
At my IB we have restrictions for personal stocks / trading:
- You have to complete the online forms which are then reviewed by compliance and you get a response approving or declining 24-48 hours after submission
- You have to hold your stocks a minimum of 30 days before selling
- you can’t short sell or purchase any financial instruments such as CFDs etc..
I was wondering what it is like at a REPE fund.
at REPE funds you dont make enough bank to have to worry about this sort of thing
Haha is RE really that much of a pay cut compared to IBD / traditional PE?
Oh really? How much do you think REPE associates earn?
Couple of hundred grand with limited progression or carry potential.
Why so low? Is it due to the low % returns generated from real assets compared to corporate PE?
Is that so low? How much do associates make in banking? Looking at the little side bar on WSO, it seems as though Associates make on average $225,000. So a couple hundred grand is absolutely comparable.
And I'm not sure I'd believe @WB97 when he tells you there is "limited progression or carry potential." That may be true, but it's also true that many IB associates never make MD - and yet you'd never tell them there is "limited progression potential." In real estate, the goal is always to go out on your own, because all the value prop is in owning assets and taking promotes, and that is one of the fundamental differences between banking and real estate.
If you are at a large firm for a long time (and are good at your job), or grow with a smaller firm as it gets bigger, there is the possibility of having big paydays as an employee. Otherwise, the idea is to gain skills and contacts and do your own thing. The same as the idea that no one wants to be an associate at a hedge fund forever - the real money is in the carry.
its fairly even.. with better balance. Ppl get tripped up since RE is a bit broader.. but if you're at an actual REPE group.. its on par.
When you enter the world of "private" assets you will find that all that stuff was just a function of SEC rules regarding publicly traded stocks (i.e. anti-insider trading regs), and thus has no place outside of the regulated world (note, if you are on a REIT/public strategies team, expect to see all come back, but probably be limited to REIT shares or whatever they trade in).
That said, if you do find a way to front run your firm on a $100 million acquisition, you can expect to be fired lol!
Yes you will still have to comply with things like this in REPE. Every fund / institutional investor will have slightly different rules, but for the most part, you’ll have to ask before trading, etc.
If you’re at an operator you probably won’t. The reason funds do it is because of the outside capital they raise and insider trading. You will know that xyz public company is selling or financing a large asset which may effect the stock price.
We have a running list of companies that we need compliance approval to trade. Maybe 20 or so at a given time, its always changing depending on what deals we're working on. Other than that can trade freely, although compliance does have access to monitor all personal accounts.
Can’t invest in any single name securities, only diversified funds. Firm wide policy to avoid potential conflicts which could arise from PE / other strategies privy to non-public info.
Firm I was at prior to that was a fully integrated owner-operator and had several discretionary funds. From memory there was no compliance sign off required for public investments given the firm never dealt with public situations / had access to material non-public info.
Just started a large institutional fund (>10B AUM), and I had to sign up for compliance. I'm allowed to trade freely, but have to connect all brokerage accounts to their compliance software. There are some restricted stocks, and I can't invest in IPOs but overall lax compared to other compliance regulations. Would imagine this is how most firms operate unless they have a traditional PE arm.
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