REPE Megafund Asset Management Comp
Hello,
I'm currently a junior at an Ivy with a 3.7 GPA. During SA recruiting I turned down a few IB offers to work for the real estate Asset Management team at a megafund (think Starwood, Brookfield, BX, Carlyle). I want to work in RE out of college and ultimately on the acquisitions side.
I've been told that the AM team I'm joining works closely with acquisitions and is modeling intensive, so I think the experience will be great. However, amid recent discussion of REPE AM on this forum, I'm wondering if analysts in AM are paid similarly to those in acquisitions at megafunds. And if not, then what is the size of the haircut.
I understand this shouldn't really concern me at this point since I haven't started my internship and the road to getting a return offer will be difficult, but I'm still curious to know what all in comp for AM analysts looks like at megafunds.
Thanks in advance for any insight.
If that is your position, I would be glad. No one especially in RE gets rich on their salary, let alone anyone in their career on first couple year's salary. I think it is great and you can easily go anywhere if the place has a top reputation and training. If you love real estate, at least you are doing what you want instead of corporate finance as an IB analyst.
I would go in this summer make the most of it, enjoy it, but if you have the chance take the 2 year stint in IB, while it will probably suck you'll learn an invaluable set of skills and position yourself for an acquisitions role exit after 1-2 years. Obviously if you can get Acquisitions straight off the bat go for it too. But IB would be better for exiting to Acquisitions than REPE AM.
I would agree with the above. Shouldn't worry about comparing comp your first few years because you won't be getting rich off that - focus on the exp. I also am confused why you would turn down IB offers if your ultimate goal is acquisitions. Acquisitions is much easier to get into at megafunds with IB exp than AM. I can't say with certainty but the lateraling from AM to acq within megafund seems extremely tough.
to play devil's advocate, i just want to say that a) you DON'T have to be a fucking investment banker to get into the equity side in real estate and b) there is nothing wrong with asking about junior-level comp at a fund
unfortuantely i don't know what the pay is like. HOWEVER, take a look at this http://celassociates.com/prime/wp-content/uploads/2012/04/CELAssociates… would i be surprised if you make the exact same as a megafund acquisitions guy? yes, because that's probably the highest-paid junior-level job you can get in this entire industry, and asset mgmt is way less sought-after. but i would STILL expect them to pay you pretty well if your'e doing modeling-intensive stuff in asset mgmt at one of the places you mentioned. i would be shocked if the pay sucked to be an asset manager at Starwood in CT. that just wouldn't make sense.
You don't have to be a banker- but it's the surest bet to a top acquisitions shop, linkedin tells the story and if he has the chance to put himself in a position that maximise the probability of his medium term goal then why not go for it?
This depends on the type of REPE shop- if they're buying real estate companies, then banking experience helps, but if you're working more on the asset-level side, then having prior real estate experience should help more. In AM you still get direct real estate investment experience and that will make you more informed about the potential of certain acquisition targets if you switch into that role.
Yup. Not that it would be hard coming out of IB but 2 years at a huge shop in AM will also make it very easy, possibly even easier, to transition to a great role in acquisitons. Chances are you'll actually know a bit more about real estate than a guy who covered healthcare deals for two years, and you'll have a network that's in real estate. As long as you're building good modelling skills you'll be fine.
I literally just typed in KKR real estate group - out of the 1st 10 results 7 had worked at an investment bank Type in Northwood you'll see the exact same results same with Starwood, Lonestar Greenoak, less paramount at Carlyle
I can't see any of those funds picking a candidate with equal meriting background pre career with Asset Management experience as opposed to banking.
Not sure why everyone is hating on the fact IB will give you better exit options. That's a fact. In this industry, an overwhelming amount of the strong acquisition roles are handled by headhunters who undoubtedly favor bankers over AM guys for an acquisitions role.
That being that, this is an industry where you can network your way into a strong acquisitions role from being an AM analyst at a top firm. Developers looking for an acquisitions hire might view your AM skillset more favorably than an i-banker skill set as well, while general REPE firms probably won't.
Last thing I'll point out is if you want to be in real estate, why head into banking? In my opinion, it's not worth wasting 2 years slaving as a banker when you can enter a crucial facet of your target industry from day 1. Asset Management is wildly important, and if you're handling opportunistic deals for the funds you mentioned, there is bound to be stress in a handful of deals and you'll learn a ton.
Agree with your first paragraph and your last paragraph. However, they entirely contradict each other if you're a newly minted grad who currently can't but would like to land at a top REPE firm in 2-3 years.
Not necessarily contradictory. I'm throwing out some considerations which anyone can decide to consider, or ignore.
My point is that headhunters are the gatekeepers to most solid acquisition roles, and they typically take i-bankers over all other entry level roles for their assignments. This does not mean that they are making the best hiring decisions, but nonetheless, it's what they typically do.
In the last paragraph I'm pointing out that if your goal is to be in real estate in the long haul, then it's not worth worth going into banking just so you can have incrementally better exit options to an acquisitions role after you finish your analyst stint. While headhunters don't value asset managers as they should for acquisition roles, it is still an incredibly important and useful skillset if you plan on having a career in RE. Sure, exit options to acquisitions won't be as good as a banker's will be, but they're still solid and you will have been spending two years in the industry you want to work in.
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