Comments (30)

Jul 6, 2018

Bump. Curious as well

Array

Jul 8, 2018

I have 10% on the carry at a boutique RE fund based in the US and funding/building in Europe, only. Only that high due to being a partner.

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Jul 8, 2018

Thanks. I'm currently at 1.5% at a London PERE Fund, as an analyst. Aspring numbers you have there.

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Jul 8, 2018
Fairmove:

Thanks. I'm currently at 1.5% at a London PERE Fund, as an analyst. Aspring numbers you have there.

Do you have any skin in the game and if so, is it a like for like contribution? See a lot of recruiters these days with carry in the advert (in London too) but always thought it'd be strange for an analyst to have pockets deep enough to contribute. (dependant on size of fund too of course)

Jul 16, 2018

This is fairly standard if anyone is wondering.

Jul 10, 2018

Curious, what were your qualifications, or how much experience did you have to come in as or get made partner? Dont want to sound like a dick, generally curious.

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Most Helpful
Jul 10, 2018

If you're speaking to me, that's not being a dick. I own a CRE Mortgage Brokerage, lone wolf. I merged my firm into my client's (now Partner) development firm and wrote the plans/found the seed capital for the fund. My job is to raise capital and manage our LP's. I'm nothing special, no college or MBA, just lots of failures in companies I tried to start and people seem to like how I look them dead in the eye while asking questions to make them feel vulnerable...

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Jul 10, 2018

Bump. Interested to know this as well.

Jul 10, 2018

5% promote on deals I source or large-scale development/repositioning projects I lead. At the VP level.

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Jul 10, 2018

How exactly is your promote calculated? Simple 5% of profits?

Jul 10, 2018

Is carry on deals you source or any deal the firm buys?

Thanks.

Jul 11, 2018

For me it is any deal the firm successfully exits

Jul 11, 2018

Got it. So your carry is coming from the 20% profits over the hurdle rate on sale?

How often does your company sell. Around how many buildings in a year?

Jul 12, 2018

Typically carry is calculated at the Fund level. There are very few managers who are able to sneak in carry at the deal-level. (The ones who do it at the deal-level tend to throw in some pretty clever language).

Typical promote structure will have a preferred return followed by either one hurdle or multiple hurdles. I've typically seen the Firm/Partners receive 60-80% of carry with the remaining 20-40% reserved for team members.

Robert Clayton Dean: What is happening?
Brill: I blew up the building.
Robert Clayton Dean: Why?
Brill: Because you made a phone call.

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Oct 25, 2018

Could people walk through how carry is calculated at their respective firms?

Oct 25, 2018
The Duke of Wall Street:

Could people walk through how carry is calculated at their respective firms?

Multifamily development total cost: $50MM
Assumes 55% LTC, 25% IRR, 3 year hold
Carry % is a % of the $6.2MM
LP contribute 95% equity, the waterfall IRR increasingly shifts returns to the promote.

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Apr 15, 2020

Worked my way from an analyst up to a senior associate at a sf based REPE firm over 5 years. Started at 0.5% carry as an associate and now up to 1% as a senior associate. Am I considerably under market?

Apr 15, 2020
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