REPE Associate/VP salary and necessary background experience?
Hello!
I’m a veteran heading to business school, and I’m very interested in REPE. As my professional experience has been solely in the military (and I have zero finance or real estate experience), I’m guessing my chance of landing a REPE associate offer straight outta b-school is unlikely. Is working at a bulge bracket real estate investment banking group for 2-3 years my best pathway into REPE?
Also curious what the salary for a REPE associate/VP looks like..
Any advice would be greatly appreciated!
Depends if you mean B-school as in HBS or Wharton, then it's possible. If you mean at a large state school or something like, it's not likely at a major large REPE firm. Overall, military experience is liked by many CRE firms (check out USAA, they make veterans a priority for internships and jobs).
If you are not going to a high ranked MBA program, you may want to consider an MSRE/D, easier to get into and may give you more miles in CRE than an average MBA. This is especially true for someone without CRE/finance experience. You will be more competitive for your first real estate job as you can actually learn real estate. MBA programs, even with RE concentrations, are still generalists degrees.
Thank you for your reply! I’ll be attending a MBA business schools">M7 program full-time in the fall. So are you saying an immediate transition to REPE is possible? I’m also open to working at a BB IB for a few years if it’d be valuable experience
If you network MBA business schools">M7 should easily place you into REPE.
It certainly is possible, not guaranteed. But overall your options will be great. If you network like crazy with the school alum and otherwise learn your craft, I think placement with REPE or something equally good in CRE will be quite doable.
At an MBA business schools">M7 you should be able to place in REPE pretty easily. Maybe not straight into an associate role (depending on the firm and your networking ability), but at the very least into a 2nd/3rd year equivalent analyst role that primes you for promotion in a year.
I would agree with others' sentiment though that a stint in REIB first will help your fundamentals. You can get up to speed doing REPE right away, but its going to be like drinking from a fire hose with no real structure, just a lot of self-teaching with the help of Google/YouTube.
Join the real estate club at your MBA business schools">M7, they should provide access to a network of PERE firms. Doing REIB first would probably be a good idea either way, just to give you instant exposure to finance before jumping to REPE where the training programs/incubation might not be as robust.
Long story short, though, it's certainly possible to go in to a PERE50 as an associate without finance experience.
REPE is definitely possible but I have a hard time believing any fund will hire you in at the associate level with no finance or real estate experience. I believe these funds usually hire individuals with IB analyst experience, not IB MBA Associates.
If i were you I'd focus hard on getting an internship. It will significantly improve your chances of landing a FT role in REPE right out of the gate. It'll also help you decide if you're really up for the REPE grind or if a more low key role at a pension fund or life co is a better fit for you. Salary is highly dependent on market and firm but you should expect at least $125k all in comp your first year, though I've heard of guys getting up to $200k their first year out of grad school.
Not gonna lie I expected REPE compensation to be a bit higher than this...is REPE significantly less lucrative than standard PE? interested to find out how much associates and VPs make at PERE50 firms, as those would certainly be my goal...
Real estate returns, generally speaking, are lower than corporate PE. So it makes more sense for corporate PE to have higher compensation. Additionally, although I don’t know this as a fact, companies for the mega funds are just more expensive than most real estate. So there is more equity put up, on average larger funds, and therefore more management fees and higher pay/more carry available.
I agree with pudding but I’m confident that someone coming from an MBA business schools">M7 would be making more than 125k in NYC. Certain top RE jobs pay equal to corporate PE and IB. But there’s no guarantee you land one of these coming out of business school. I’m sure there are some veterans in the NYC REPE space - your best bet is to talk to them.
You will not be a VP straight out of bschool with no prior experience.
Keep an open mind in MBA business schools">M7, you should really join amazon as TPM and make $170k+ straight out of MBA rather than doing REPE
I thought the running joke was that working at Amazon was everyone's plan B?
It’s quite sad that your plan B is to work as delivery driver for amazon....but also makes sense since you don’t know how to code
Not everyone wants to join a company like Amazon to become a cog in the wheel. Money straight out of MBA doesn't really determine comp down the line either. I'd wager that 10 years out of MBA given the same level of success, someone who went REPE is making more.
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