Hey guys,
Does anyone have experience with real estate focused family offices? Sounds like they could be a good place to go - good hours and decent pay (not as much as straight REPE, but on a per hours basis maybe better?).
Also seems like a great opportunity to enhance your network if you get tight with the family members. A buddy of mine mentioned to me that one of his ex-colleagues went to a family office, did a really good job there but wanted to start his own REPE firm so convinced the family to provide $50m in funding themselves but also got their friends to contribute.
Bump
So had a long post typed up and mistakenly closed the app. I started with a CRE focused family office at the beginning of 2021 right out of school. There is a ton of variation when it comes to family offices, think family members running the firm, pure investment focus with others being pretty all encompassing where the firm handles day-day management of virtually everything (foundations, hr for domestic staff, estate planning for family members, to even arranging travel or vendors for residential properties). You will find some firms that GP all of their deals while my firm primarily allocates on a LP basis. We are extremely active so I’ve been able to see a ton of deal flow in virtually every product type and learn immensely with the added benefit of an extremely solid asset base.
I have really enjoyed my time thus far, being a small team everyone wears a lot of hats where I might start my day helping with some more accounting focused items to new deal executive summaries to working on foundation items. My office puts a heavy emphasis on everyone being very well rounded.
My comp is probably a hair under market as far as base and pretty standard 20-30% bonus, hours have been extremely manageable with most weeks being 45-50hrs. A good bit of family offices will have some form of a co-investment plan (ours let’s employees invest alongside the firm in most deals while using our credit facility for anywhere from 1:1-3:1 ratio which helps balance out comp).
Firm visibility can vary significantly depending on the goal of the family meaning which can hurt exit ops if changing markets as well as finding roles (I was connected through a headhunter).
TLDR: Family offices can be a great spot to be as you will have the ability to learn a ton and usually across multiple product types. Be prepared to wear many hats and that you can have everything under the sun thrown your way. Most will hire for the long term so comp structures can definitely follow and may take some leg work to find open seats.
Can I PM you re: how your co-investment is structured?
Family office I work for is just starting to develop their co-investment plan and have asked me to look into potential structuring options.
Depends on what your goals are. Family offices are can be incredibly structured to wildly fluid with little to no focus on asset types and it can change from single tenant NNN retail one day to traditional PE the next.
Send me a DM and we can chat directly.
I work in a family office focused exclusively on multifamily, but I am a family insider. We do JV's and have a lot to do with similar firms.
And I can tell you that family members will obviously have an inside and get a ton of carry, regardless of performance. However considering the structure, if someone joins and adds real value, he would be very appreciated and compensated accordingly. They would do whatever they can to hold on to him. Because these firms are not trying to make a buck on carry, they are here to afford the next generation the same comforts and luxuries as the founders. They like a valuable asset and they pay accordingly, and a good employee is the most valuable asset.
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