REPE Upper MM/Megafund Comp/Bonus Discussion
There is a lot of ambiguity for REPE comp at the UMM/Megafund firms as this RE forum is so broad. I think it would be helpful for those of us who work at these places to create a thread with information such as below. By UMM I'm referring to firms with latest fund sizes of ~$2 billion or more but I understand that this is arbitrary. I can start with the first comment below. Let's please try to limit this to REPE only.
Position:
Market (office location, not coverage):
Years of experience:
Latest fund size:
AUM:
Base:
Bonus:
Position: Analyst
Market: NYC
Years of experience: 1
Latest fund size: $2-3 billion
AUM: $25-45 billion
Base: $100k
Bonus: 75k / 75%
That's a pretty nice package. What's the shop like? LP or operator?
LP. Top tier REPE but not a “megafund”
How are hours? Do you work in debt or equity?
9am-9pm M-Th and 9am-6:30pm Friday is the average. Some weeks have been 9am-3am every night and some have been 9am-6:30pm. Really depends.
Position: Director
Market: West Coast
Years of experience: 10
Latest fund size: $2B
AUM: $10B
Base: $300k
Bonus: $300k / 100%
Promote: 1.5% - 2% - DAW: $5.5m - $6m. Probably get paid out over next 7 years.
Very nice. Hope to be able to put myself in similar position at your YOE. Have you been at your fund your whole career and do you have advice for acq people who came up in corporate asset mgr/insurance co type roles making the switch to smaller more PE style fund? If you’re comfortable sharing your firm’s strategy that’d be appreciated as well.
what does DAW mean? Is there a vesting period for your promote, or how does it work at your firm?
I spent 4 years at an LP shop before moving on to a investment manager firm. I would say network and put yourself out there. Real Estate in general doesn’t have a typical hiring cycle so knowing as many people in the business helps to keep your tabs on open roles. Relationships matter at the end of the day in a business like real estate. That’s how I heard about my current job as it wasn’t widely published on LinkedIn or Selectleaders.
Dollars at work it’s a way to value the promote in a total dollar value using a 2x equity multiple. It is pretty standard vesting in that they give you % ever year and withhold a % until the final closing.
Got it, thank you! Curious to hear what a typical day to day is like for you? What's your role, responsibilities, hours etc.
Tough to say what a normal day looks like but my week is a mix of touring deals / calling brokers / property managers / uw deals / internal calls. I would say my hours are tough because I travel usually every week but when I’m in the office 8:30 - 5:30. Usually answer emails and am free at night / weekend if necessary but very rarely needed unless I want to get ahead for the week. To be honest very fortunate to be in the position I am in at my age. If you told me 10 years ago when I started this is where I’d be I would laugh and I won’t believe it. I would also do what I do for way less than what they pay me but the pay for RE had gone up astronomically since when I first joined. Right place right time as they say. As much as I hope this will be the case for every analyst / associate it’s tough to get a seat at the table at the end of the day especially with RE now being viewed as a more desirable career.
If I am understanding correctly, you get paid $600K (base/bonus) and $5.5-6.0m ratably over seven years and trued up at the end of the fund life?
Correct. That’s as of today. We are likely raising another fund in the next 1-2 years that would increase the DAW.
Can you guys add hours you work per week as well? That would be insightful
Following for Canadian figures. Would appreciate it if you could comment on Canada REPE figures under this comment
Bump
following
Position: Analyst
Market: NYC
YOE: 3
AUM: About $10B
Base: $95k
Bonus: $10K
Hours: 40-45/week
Really? This is awfully low considering AUM and market. I know hours are pretty good but still.
Seems more like a developer/owner/operator. I don’t think any of the MFs or UMM shops are at $10B AUM.
I'm looking at similar numbers in NYC as well (0 YOE, large-ish LP).
Comp definitely a pain point in conversations with friends in banking / PE, but oh well. Very grateful to have a desk and be able to get in on the ground floor during times like these...
Position: Associate (promoted to Sr Associate); acquisitions and AM
Market: Mid-Atlantic
YOE: 5.5
Fund size: ~$3.0B
AUM: ~$10B
Base: $120k (bumped to $135k)
Bonus: 100%
Hours: Avg of 50 but pulled a lot of 60+ hours this year.
I feel like I should be higher than a Sr Associate based on what I add to the team but didn’t complain because of my total comp and hours. Base salary for sure could be higher though. Anyone feel differently?
Would be helpful to outline what you do on a day to day basis to help gauge if you deserve more
First half was mostly acquisitions. Led analytical work on UW, DD, and closing of 3 new deals for our value add fund (1 dropped during DD) through Q2. Just me and 1 MD.
I was also AM lead for 60%+ of our regional team’s equity on top of other leadership initiatives.
I won’t get into everything but I believe I more than pulled my weight than guys at the VP+ level. Total comp is fine but base salary could be higher. I believe I should be closer to $150k-175k range.
Position: Associate (AM)
Market: Southeast
Years of experience: 5
AUM: $2-3B
Base: $135k
Bonus: $41k (would be higher but fund is a blood bath - overpaid at top of market)
Hours: 40-50
Position: Sr Assoc —> VP
YOE: 6
Base: 150 —> 200
Bonus 80
Have 1 MM of carry won’t pay for a long time
Hours: 40-50 typically but 60-80 for 3 months out of the year
It’s ok. Really outperformed this year so expected more on bonus front.
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