Anyone have any experience/knowledge on the Real Estate team at Texas Teacher’s Retirement System? Specifically comp and WLB - difficult to find stuff online, I have heard before that pension funds typically are like Life Cos; generally conservative, like class A quality product, and are more laid back in culture. Any insights at all would be greatly appreciated!
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How is that possible?
Based on the most helpful WSO content, pension funds like the Texas Teacher’s Retirement System (TRS) often operate as capital allocators, similar to many Real Estate Private Equity (REPE) funds. They tend to focus on conservative investments, such as Class A quality products, and are generally more laid-back in culture compared to other high-pressure finance environments.
In terms of compensation and work-life balance (WLB), pension funds are often compared to Life Companies. They typically offer a more stable and predictable work environment, with better work-life balance than REPE or other high-stress finance roles. However, compensation might not be as high as in more aggressive, deal-driven environments like REPE or investment banking.
If you're looking for a role with a steady pace, conservative investment strategies, and a more relaxed culture, TRS or similar pension fund real estate teams could be a good fit.
Sources: What is your compensation in Real Estate Finance?, Tell me about the culture at REITs, RE at Pension Funds in Canada - What do they do?, Retirement: Tick, Tock?, Why do so few go into Real Estate?
Generally I have a pretty high opinion of the TX Teachers crew - obviously a sizable pension and I think being in Austin helps them attract very capable talent that is just looking for a slower tempo. Their size means they're working with blue-chip sponsors and pretty much get the cream of the crop in terms of deals/exposure. I think AN/ASO cover both direct/funds 50/50 (like the whole RE allocation is set up); they also appear to be a smooth-running machine with good growth. They have a London office with RE people covering Europe so the Austin team is mostly domestic.
As far as comp, I think they're about what you'd expect for MCOL lifeco/pension - not NYC MF comp but not bad. (Edit to add, all the salaries are public.) WLB I honestly couldn't say with any certainty, they are a pension and the people seem reasonable but I have exchanged emails with their team at ~11p their time, so take that however you want.
Typical large pension fund. Younger folks overlook these type of roles often and glorify those large PERE firms. When you work for a pension, you’re the closest to the sun, to the source of capital. Everyone out there are trying to please you as a customer. You get exposed to top fund managers, see how every sector of RE is run by the very best operator.
Yes, comp is probably a little lower ~20% than large PERE shops, but don’t forget to factor the pension you’ll receive into the equation. I’d make sure you find out the pension qualifications at TRS. At certain pension, you get 100% of the average of your highest 3 years of salaries if you stay for 15 years at least…I mean, put that on excel and slab a discount rate on it to see how much that’s worth…
Just my 2 cents. Personally I’d kill for a pension manager role and be happy to take a 20% cut to coast for 15 years just to get my pension then retire in South America or wherever. Im at a large PERE firm making over 350k/yr w 10 YOE, just for reference.
So lets say you're 25 you can retire by 40 and get paid an average of the 3 years of highest paid salary for life?
How does this work?
You dont get those payments until your retirement age (~60 - depending on what the pension policy is). But yes, I’ve seen pension employees work for xx years to hit the pension requirement, then leave to go onto private side in their mid 40s to start earning the big bucks, while knowing they lock up their pension when they retire. The relationship you accumulate, involvement with PREA during your time in the pension world is highly valuable. Remember, all these pension people all talk to one another, and the ability to say I know ABC at XYZ pension is huge selling point for a job in fund raising in your mid 40s - whether or not you have the risk appetite at that age and the personality to do such a job is another question. But again, this policy is different from pension to pension, and OP needs to look into before consideration. Comparing pay without looking into the pension you receive is not an apple to apple comparison for compensation.
I’d say the comp widens as you move up to more senior levels especially when you factor in promote.
It is very easy to find comps online (all public). Use Texas Tribune for salaries. I’ve never worked there so I can’t speak on WLB, but from the outside looking in it feels like it is one of the better pensions to work for. I’m not exactly sure what pension you get at Texas Teachers once you retire, but I’d agree with the other user and second that the pension you get at retirement can be really good, especially when you consider the salary that it would be based on.
Why when I look at the Team on their website they look like I should only trust them with my Legos rather than my retirement? Just me or do they look like they count with their fingers?
Ngl, that's a lot of allocators. They aren't guys who took the perfect path or elite finance jobs to pivot into a cozy exit opp. They kinda fell into it and have really odd backgrounds, for better or worse.
Lets see your headshot hot shot
The one guy I know at another large state pension fund was an MD at a REPE fund that blew up during the GFC. So I guess the state thought the logical next step was to make him a portfolio manager for their real estate book. He’s still there 15+ years later and I think his all in comp is around $300k at this point. My guess is he made more from 2000-2006 than he did during his entire career working at a pension fund. I think he’s one level down from being head of the real estate team at this point.
300k for 2nd in command of an entire dept at a major allocator?
I looked up the comp for a director of the RE arm at a major NY pension and was also surprised to discover this. The money might come afterwards as I have seen them get paid huge consulting fees.
From my limited understanding of the pension fund world it is all state dependent. Some low COL states are paying Wall Street wages to pension fund guys and some high COL states are paying civil servant wages to pension fund guys. In theory the higher paying pension funds are also attracting higher quality talent but we all know theory and reality are very different things in government world.
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