What Base Salary / Bonus Should I Be Targeting for REPE?

  • 2017 Graduate
  • First job was for a small, no-name <$1.0B AUM REPE Shop in Miami
  • Lateraled to an IB as Analyst I after about a year; but got tons of reps on JV Equity / Pref Equity / Mezz Debt RE investments during my tenure
  • Now an Associate II at a top REGAL group (Nepotism - sue me) 
  • Current comp is $185K Base + 50%-125% Bonus 
  • Now that I have the benefit of a premier IB on my resume, I consider going back into REPE assuming I can find a role at a PERE 100 type of firm

General question is what should I be looking for in terms of comp? My instinct is that when I talk to headhunters I should quote $150K as my desired salary with the potential hopefully for 50-100% bonus. I'm cool with taking a haircut up front for the potential to hopefully get carry down the line (and a reprieve from my current long-hours, however slight). I just want to make sure I'm not underselling myself or asking for too much here. Any suggestions? Would large, institutional firms consider throwing a small amount of carry and/or coinvest to sweeten the pot assuming salary/bonus is beneath what I'm looking for?   

Comments (15)

  • Associate 2 in PE - Other
Aug 3, 2022 - 9:51pm

Seems like you're in NYC. I personally wouldn't take under $300k all-in (try to get to a $175k+ base) with your background and YOE. 

Make sure to target traditional financial services firms (obvious ones being BX, KKR, Apollo, Cerberus, Fortress, you know the firms). These guys tend to pay closer to corporate PE levels than the real estate focused shops.

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  • Associate 2 in IB-M&A
Aug 3, 2022 - 10:13pm

I had a similar background and moved to REPE. 1 Year of traditional RE experience + 3 years of REIB. Not as easy as you might think although it will be easier given the current job market.

The best RE jobs for people coming out of REIB tend to go to kids who went straight to IB at top BB/EB and recruited 6-12 months into the job for the associate class at Brookfield, Apollo, Centerbridge, Etc.

Since you're 27-28 and it's been forever since you worked on a traditional RE acquisition, you kind of sit in a weird box. The places that typically hire from IBs have already filled their Associate slots with 23 year olds from Morgan Stanley they interviewed 12 months ago - you likely won't get looks there. 

The places looking for traditional laterals will look first to people coming from other principal side roles. People like you start getting looks when the hiring firm has run out of principal side people to hire.

So given the job market, you should get looks. But I wouldn't go out there with expectations to make no less than $300k. You'll have to keep an open mind. REPE almost always pays less than REIB at a comparable firm (meaning a top shop like Oaktree will pay less than a top bank like Lazard. A solid shop like Artemis will pay less than a solid bank like Barclays).

And just since I'm using Oaktree as an example, they're another example of a firm that's shifted their hiring preference from REIB analysts to people coming from other principal side shops 

  • Analyst 1 in PE - Other
Aug 3, 2022 - 10:41pm

How much can you expect to earn at the "top" shops like Brookfield, Apollo, Oaktree, etc. all in compared to a "solid" shop like Artemis as an Associate?

  • Associate 2 in IB-M&A
Aug 4, 2022 - 12:13am

Brookfield is around $300k and Artemis I'm not 100% sure of the comparable number because I know they paid $150k for first year associates in Atlanta but recently a recruiter told me comp has been bumped a lot, especially in higher COL markets like Ny/LA

Point is Artemis is lower and not necessarily a place OP could turn his nose up at given his situation

  • Associate 2 in IB-M&A
Aug 4, 2022 - 7:58am

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