REPE comp vs. corporate PE comp?

From what I've seen on these boards, it seems like REPE comp is 20-30% lower than corporate PE across the board (from MM to MF), even at top MF's like Carlyle. Can anyone shed light on if this is actually the case? Any explanations for why this might be the case?

IB associate comp these days (at least at BB's) is higher than some of the numbers I've seen for REPE comp. Might seriously reconsider buyside recruiting if REPE comp is indeed not up to par with at least banking associate pay.

 
Best Response

It comes down to all the normal stuff - where you work, how good you are, etc. But RE really isn't as set as IB or the banks in title/pay progression. There is no definitive ranking of firms like there is on the IB or Management Consulting side.

I'll throw some comp numbers your way, but really, if you are on the fence about RE, I would tell you to stay away. RE people tend to be really passionate about RE and they like to hire other passionate RE people. It is one of the things that is sort of unique to RE, and if you don't have a good answer for the question of , "why do you want to be in RE?" that isn't "money," you will hate it.

So I'm at a life co in a southern satellite office and this is what I've seen over the last 3 years. There is a third year/higher analyst tier, but I was promoted so I don't know what the base is there. First year analyst: 70k base + 10k - 20k bonus Second year analyst: 80k base + 15k - 25k bonus First year associate: 95k base + 25k - 45k bonus

But as I said, I work on average 50 hours a week. This year as a 2nd year associate has been abnormal because I switched groups so I've put in more time, but I don't foresee my current 65 hour weeks continuing past the new year.

I was being recruited late last year for a job at a RE fund to come in as a 2nd year associate to their financing/debt group. They offed me 120k base + up to 100% bonus. I declined because I wanted to move to the equity side (which I did earlier this year and used the offer to get my bonus target increased at my current firm - base pay basically can't be changed). I got another offer from a bank to run an analytics team at 125k + 50k bonus (senior associate), which I declined because I wanted to stay firmly front office and it was sort of a front/back office hybrid role.

Hope this helps.

 

Nice - was the financing/debt group in a different city? I ask because that amount in a southern market is great. $200K in ATL/Houston is like $450K in Manhattan

Fill the unforgiving minute with 60 seconds of run. - Kipling
 
Virginia Tech 4ever:

I think the answer is even simpler than what's been put forth so far. Corporate PE has a higher targeted IRR and deals are much riskier, on average. Higher risk and higher returns = higher comp.

Not always. I remember reading that BX's real estate funds have posted higher returns than their corporate-focused PE funds. I'm sure it depends, though, on which time period, which fund, etc.
 

For the OP, it varies but from what I've seen the BB groups pay more than standard REPE associate positions. Having said that, my friends still at REIB groups are trying pretty hard to get out. It's a grind.

This comes down to personal preference but $160-190K at 50 hours per week could be better than $210-230K doing 80+ hours per week.

Numbers above don't apply to the megafund REPE groups like Carlyle, BX, or TPG - who work more and are compensated for it ($220K+ all in)

Fill the unforgiving minute with 60 seconds of run. - Kipling
 

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