Opportunistic REPE funds vs PE returns
From your experience, do traditional LBO PE funds outperform opportunistic REPE funds?
And at what size fund is this is at? MM / large cap etc.
From your experience, do traditional LBO PE funds outperform opportunistic REPE funds?
And at what size fund is this is at? MM / large cap etc.
WSO Virtual Bootcamps
Total Avg Compensation
May 2026 Private Equity
Career Resources
Leaderboard
| 1 | 99.2 | |
| 2 | 99.0 | |
| 3 | 99.0 | |
| 4 | 99.0 | |
| 5 | 98.9 | |
| 6 | 98.9 | |
| 7 | 98.9 | |
| 8 | 98.9 | |
| 9 | 98.9 | |
| 10 | 98.8 |
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Hi Grad7748, no, I never sleep and so I can respond to any lonely threads (like this one) at all hours of the night. Impressive, I know ;-)
If those topics were completely useless, don't blame me, blame my programmers...
bump
Usually LBO PE funds do better unless the real estate fund is an operator/GP that takes deal level carry (and only puts 5-10% of the equity in each of their deals).
There's more of a cap on unlevered returns in the real estate space than in LBOs. Some real estate funds super crushed in the 2010s due to cap rate compression similar to how LBO funds of the same vintage did really well due to multiple expansion.
Should hold true at most fund sizes, except maybe the micro fund space where you get the GP/operator funds.
could you clarify what you mean when you say GP/operator and deal level carry? wouldn’t all repe opp funds be GPs taking deal level carry
Most RE Opps funds take fund level carry (yes maybe its deal by deal, but to clear the hurdle/not get clawed back its on the fund level).
Huge firms like Blackstone/Carlyle/Starwood/OAK etc., they don't manage their real estate assets directly and usually partner with an operator who needs to put in a portion of the equity and also earns a carry. BX/etc. are LPs on a deal level but GPs on a fund level. So for example:
There are a small subset of re opps funds raised by these operators to put up the equity portion of their deals, usually when they are starting off. Those funds can have insane economics because of the deal level carry (which is proportionally paid to LPs of the operator fund). Decent amount of risk investing in those operator funds, though usually because they are new platforms that aren't capitalized to be able to put in up operator equity.
Asperiores vero voluptatem asperiores porro. Harum error consequatur eius eum vero impedit ea. Sed at perferendis et et et nemo eligendi corrupti. Esse natus ad soluta labore distinctio modi. Esse consequatur asperiores delectus saepe aliquam labore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...