REPE - Reviewing Job Offer at New Fund
Seeking feedback from peers. Through my network, I just recieced a job offer to run asset management for a $200M fund focused on value-add multi-family real estate. The principals are from institutional shops and seem to have good reputations.
I've been offered the following:
Salary - $140k
Bonus - Up to 50%
Carry - 10% vesting over 4 years
Plenty to dig into and negotiate. On its face, is this an attractive offer? Been an associate for the last 4 years and they seem eager to find someone younger with potential (who would be cheaper on salary).
Any feedback would be appreciated.
Based on the most helpful WSO content, your offer seems competitive, especially for someone transitioning into a leadership role in asset management for a $200M fund. Here's a breakdown of the key components:
1. Salary: $140k
2. Bonus: Up to 50%
3. Carry: 10% vesting over 4 years
4. Role and Responsibilities
5. Negotiation Points
Final Thoughts
This offer is attractive, especially with the carry component and the opportunity to step into a leadership role. However, ensure you fully understand the fund's strategy, performance expectations, and the support you'll receive. If the principals have strong reputations and the fund has a clear path to success, this could be a fantastic opportunity to grow your career.
Sources: IB Associate with PE Offer (package question), What is your compensation in Real Estate Finance?, PE Comp Question - VP / Principal Level, 2021 S&T Bonus
The cash comp seems low for someone running all asset management, but the carry is attractive. I would try to get as much detail into how carry is paid out at your firm and some annual estimates.
But, all that said, I’d take the job. Being handed the keys is almost never a negative for your resume and getting a job offer in this market is pretty damn difficult.
The cash comp would be a 20% reduction for me. However, 10% carry if any where near where it could potentially pay out, would meaningfully offset near term "sacrifice".
They hiring anyone on the Investments side? Not a bad offer in this market.
If they've already raised the fund - that's great, take it (as others have said). However, the skeptic in me wonders, if they have raised it (or a 99% lock to do so), why are they giving up so much carry? If I'm the founding partner, I make this offer if I don't have the fund locked-in/committed, and want someone to share the downside/upside risk and limit amount of cash comp going out the door in the downside scenario it's not fully raised. And being from an institutional shop and having a good reputation is not a guarantee of raising a fund - especially in this environment.
Just some food for thought. Congrats on the offer.
Really appreciate this vantage! It's on my list to ask for verification that they've raised the commitments.
Is this a new venture? If so, I am pretty sure I know who it is and know the principal personally. The carry is great because he can’t pay big salaries/that eats into his economics. On the carry - you are fully vested after 4 years? If so that’s market / good. Also, what happens if you leave (by choice or fired) even if vested?
It is a new venture and based in the SE. Fully vested over 4 years and stays vested if I leave by choice. If fired for cause (to be defined), no payout on whatever is vested at that point.
Even if I leave by choice, I'm skeptical of receiving actual payout as I've heard horror stories from colleagues.
FL or actually in southeast/sunbelt? Regardless if you don’t trust you’ll get payout if you leave by choice, then that’s a giant red flag and to be avoided regardless of the offer.
Pretty sure the nod to climbing mountains is the bc of the origin story for the name of the alleged firm..
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