Compensation and culture at top REPE

Hi all,

Though I know there are various compensation threads for RE, I am specifically curious about top REPE compensation. In particular, what is compensation/work-life like at the junior level at a firm like BX or Brookfield and how much does it differ from firms such as JLL IM or CBRE Global Investors? Also, how does salary progress from analyst to associate and so on at firms like the ones mentioned above? Any insight would be great!

Thank you!

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Comments (80)

Sep 26, 2019 - 1:39am

Top 3 MF
1st year analyst
~150k all in
~25k expenses covered (all three meals, transportation)
60-70 hours
Not acquisitions (lol there's only one or two other roles that can be considered FO so take a guess)
Acq can expect approx the same 1st yr comp but higher income trajectory, comes with working 10-20 hours more per week though

Can expect ~300-400 as senior assoc but take that with a grain of salt as I have not experienced that firsthand and am ballparking based on lifestyle differences of seniors

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Sep 27, 2019 - 12:12pm

I will let you know as soon as I get there ;)

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Sep 27, 2019 - 1:01pm

I have heard that be the case, I think I saw that on another thread here.

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.

Sep 30, 2019 - 8:48pm

Wow. $140k all in for the first year! That's really good.
My buddy working at a REPE debt fund and his all in comp is about 110k, first year/Analyst. (He worked in real estate operations/facility management for about 2years before that. So not in the same industry)

DX
Sep 29, 2019 - 1:40pm

Applied through the firm's website - they didn't recruit on campus at my school.

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Jul 21, 2020 - 8:39pm

NYC

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Sep 27, 2019 - 2:15pm

2nd hand account of Ares RE Comp Acquisition all in around $150k-200k plus carry in fund.

Carry doesn't vest for a long time though, so you end up leaving/getting pushed out before it gets paid out at the junior levels.

Sep 29, 2019 - 6:07pm

Anyone here have firsthand knowledge of the Fortress' Dallas office?

"There are only two opinions in this world: Mine and the wrong one." -Jeremy Clarkson
Oct 1, 2019 - 9:21am

Haha. Would appreciate if you share more.
Don't know Fortress a lot other than it was acquired by SoftBank 2 years ago.
Is their back office/asset management team housed there in Dallas and their front office in NYC?
Are they also a REPE debt fund investing in CRE loans?

DX
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Oct 3, 2019 - 10:30am

hmmm, AM could mean very different things.
At my firm, AM is pure back office functions.
We originate loans as a balance sheet lender. After origination, loans are passed on to AM for on going management, approving leases/TIs/future funding draws/tracking capex processes/parcel sales/extensions, etc.

At an Asset Management firm that manages investors money to invest, that's FO though.

Correct me if I'm wrong.

What's Fortress's AM?

DX
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Oct 3, 2019 - 10:41am
Gordon_C:

hmmm, AM could mean very different things.
At my firm, AM is pure back office functions.
We originate loans as a balance sheet lender. After origination, loans are passed on to AM for on going management, approving leases/TIs/future funding draws/tracking capex processes/parcel sales/extensions, etc.

I mean, no disrespect if this is what works for you guys, but.... those are literally the most important parts of the deals your doing. Maybe "back office" doesn't have the same negative connotation at your shop, but I'd rather have intelligent and dedicated people doing all that than the underwriting and the closing. Any idiot can close a deal. Executing on it is the tough part.

Oct 4, 2019 - 7:29pm
Gordon_C:

hmmm, AM could mean very different things.
At my firm, AM is pure back office functions.
We originate loans as a balance sheet lender. After origination, loans are passed on to AM for on going management, approving leases/TIs/future funding draws/tracking capex processes/parcel sales/extensions, etc.

At an Asset Management firm that manages investors money to invest, that's FO though.

Correct me if I'm wrong.

What's Fortress's AM?

I think there's a bit of a difference between Asset Management in Real Estate vs Real Estate Debt (where it's more like portfolio management at a bank for instance).

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Jul 18, 2020 - 1:32pm

All returns, debt or equity, are predicated on actually receiving your capital back at the end of an investment. In the equity world, that is completion of a business plan and disposition of an asset/cash out refinancing your basis to 0. In the debt world, that means maturity/payoff or foreclosure/disposition of an asset.

Debt AM is more numbers/technical/legal focused, but just like equity AM, everything I do is to ensure that returns are achieved as underwritten. The legal framework of loan documents essentially gives debt controlling class level LP rights for a deal; we don't get involved with day to day decisions for a property, but we have the power to put the brakes on pretty much anything we don't like.

In that context, if you wouldn't consider any other LP investors "back office" then you shouldn't consider us "back office" either.

Also, as a frame of reference, the VPs I know in AM at debt funds all make 300k+ (including myself). Maybe we are paid a little less than acquisitions, but it isn't by much.

Sep 29, 2019 - 11:03pm

To an extent I have to admit I get tired of reading the "what's it like to be a Dallas Cowboys cheerleader" and how rich will I be? Thinking that if one could only land that job as an analyst at Blackstone or Goldman they'd be set...In reality it really doesn't change much at the entry-associate levels. And really only large shops have senior level associates...botqiues typically go straight from analyst/associate to VP to exec levels.

But I've worked as a 1-2yr analyst at a top REPE development firm, and then also worked immediately after at a botique small development shop...same pay at both places, literally -- the botique asked what I made/wanted and simply said ok and matched it....80-85 base + 10% bonus.

What I am trying to get at is if you are a salaried role, there isn't THAT much of a difference in pay...there really isnt. To me the real value at that age is getting the exposure to deal flow. But even then, yes I was seeing 1-2B of dev deals at a large shop and only 1-3 individual deals a year at botique...but was much more in the weeds in the latter role and if being honest learned more there. But as resumes are concerned yes it carried weight having that level of deal flow experience early in my career.

Where the money starts to have impact is higher level dev/acq or "Deal making" roles where you have a % of your production. And a bigger shop will simply have more access to capital and deal making opps, thus you can earn more money. However, imo, if you're in a deal making role and don't always have at least 1 deal cooking...you're not justifying your cost to the company. There's a ceiling a deal-making role has in what they can produce...so working for a $$$B PE REIT in a dev capacity in the end gives you the same number of deals you are personally completing...there's just 50 more of you compared to 2-3 covering the country.

Simply, companies have to make accretive deals for the level of overhead that deal comes with...and more often than not they will choose to grow and not distribute that cash to lower level employees. To the extent there's extra cream leftover, it's distributed at the senior/exec level......not analyst/assoc

So in summary...from my experience...at the analyst/early associate level - there's very little difference in pay. Large shops will have senior associates because they will take less money to help move deals through rather than hiring an additional development director...smaller shops don't tend to have these roles because the amount of deal flow isn't enough to justify the cost. Being a development director really varies greatly and comes down to howyour package is structured...seen people at small botiques make multiples of what a top RE dev shop dev director was making because he hustled like hell and had an uncanny ability to juggle multiple deals which he then got a carry on.

Oct 1, 2019 - 9:26am

Congrats on getting the offer.
I remember interviewing with them back in college. My interviewer told me he worked from 9ish am to 10ish pm.
The comp is... idk.. I have to compare it to something.
I heard from a headhunter for an associate role within Starwood Capital based out of Greenwich, CT (will relocate to NYC soon) in its internal debt team ((re)financing their own acquisitions... looking for the cheapest debts). That role requires 2-4 years of experience in CMBS and underwriting and capital markets. They offer $125k base+100%bonus.
Office culture: everybody is eager to climb up the ladder and works like 60-70 hours a week

DX
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Oct 1, 2019 - 11:38am

Is that base or TC? Analysts at my MF clear 130 on the low end, NYC as well

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Jun 5, 2020 - 3:21pm

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