Worth it to move to REPE from Debt side?
I like the thought of being on the investment side — the content seems a lot more interesting and exciting overall.
Got an opportunity to move to REPE but not sure if it’s worth the risk/workload. Im no stranger to 60-70 hour weeks and can handle them in moderation. Typical workload here ranges from 35-65hrs, averaging 50. Exit opportunities could demand more, not many demanding less.
I’m an Associate with TC $125k with clear shot to $250k within 5-7 years where I’ll probably plateau.
Opportunity to go to REPE at a reputable firm for $135k TC. Not sure if workload is similar or more extreme. REPE is hybrid/remote though whereas Im full-time in office with a 75min commute
Not interested much in the immediate pay raise - more so in gaining the experience for the long haul.
I dont think I want to be pigeon holed on the debt side but I do enjoy it overall. Just don’t want to risk the stability and work-life balance (to the extent it does exist here) if the career earnings can be similar
Based on the most helpful WSO content, transitioning from the debt side to REPE can be a strategic move, but it depends on your long-term goals and priorities. Here are some key considerations:
Workload and Lifestyle:
REPE roles often come with a wide spectrum of workloads. As noted in WSO threads, hours can range from 45 to 80+ per week depending on the firm and role. While the hybrid/remote setup in REPE might save you commuting time, the actual workload could be more intense than your current role, especially during deal cycles.
Compensation and Career Growth:
While your current role offers a clear path to $250k within 5-7 years, REPE compensation has a broader range. At the higher end (e.g., megafunds or elite boutiques), REPE can surpass IB compensation, especially with carried interest and equity participation. However, at smaller or mid-sized firms, pay might align more closely with real estate developers, as highlighted in WSO discussions.
Skillset and Exit Opportunities:
Moving to REPE would diversify your experience and position you on the principal side, which could open doors to acquisitions, asset management, or even entrepreneurial ventures. Staying on the debt side might limit your exposure to the broader investment process, but it offers stability and a specialized skillset.
Long-Term Fit:
If you find the investment side more exciting and want to avoid being pigeonholed in debt, REPE could be a better fit. However, as some WSO users have pointed out, the day-to-day in REPE often involves managing processes and updates, which might not be as dynamic as expected.
Risk vs. Stability:
Your current role offers stability and a predictable path, while REPE might involve more risk in terms of workload and firm performance. If you're not overly concerned about immediate pay but value long-term growth and experience, REPE could be worth the leap.
Ultimately, the decision hinges on your tolerance for risk, your interest in the investment side, and your willingness to trade some stability for potential upside in experience and earnings. If you're still uncertain, consider networking with professionals in REPE to get a clearer picture of the specific firm's culture and workload.
Sources: Quitting to do REPE, Transition from RE Development to REPE, Q&A: London REPE MF Associate, REIT career path to REPE, Deciding between 3 offers
Right now more than ever job security / stability should be at the forefront of your decision. Who is this REPE shop and how are they capitalized? Do they have powder? Do they have legacy deals that might blow up the firm? Is this a new opening or a backfill, if backfill you need to get to the bottom of why the last person left. Assuming that all checks out, you zoom out to your long terms goal - if you think you wanna be an investor and you have an opportunity to explore that now in an extremely competitive market - why wouldnt you take that step? Does you gut give you good signals about the new team and people you would be working with for several years at a minimum? The comp considerations as you identified are frankly last - these are rounding errors in the long run - it's all about your goals and whether or not this step would advance you towards those goals.
Cruical questions to understand before considering a move. A reputable firm name in the last cycle may not have a good outlook on fundraising in this environment. All the more reason to really understand your goals and do the right diligence before making a move.
Related to these questions, you can carefully get an opinion of a trusted friend from the outside (obviously not your current employer) on the reputation of the senior investments people. A good broker or prior industry contact more senior than you for example.
Based on the offer alone, it would make total sense to jump ship. Better comp + the hybrid/remote compared to a 75 minute commute is huge imo which makes up for the risk of more hours. However, the other commenters are correct in ensuring you do your due dillgience on this firm to ensure there's job stability. But would go for it if that checks out.
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