Please just let us invest once you have your first $2-3 billion fund.

Private credit requires a lot of capital, similar to PE, so it’s not for anyone in their early career. It may be slightly easier than PE since performance expectations are lower, but compensation is also lower because fees are lower as a result of that. None of this is really worth thinking about until you have 10+ years of experience in one of these industries.

Lastly, what about starting a Private Credit firm? Thanks for your insights. I really appreciate it.

It’s easier in the sense that you can start a VC firm with less capital, but it has some of the other issues mentioned here (poor macro environment, very crowded market, etc.). But it’s also a bit easier to bounce back and move to some other startup-related opportunity.

So, on balance, it’s less of a bad idea than starting a PE firm, but I still would not recommend it to most people unless you are already wealthy and have had a long/successful career at startups and early-stage tech firms.

The same way you earn that money in any other industry: Start from the bottom, work a lot, reach a higher income level so you can save and invest more, and then put your money to work in investments such as your own properties. Buy and sell at the right time and keep moving up like that.

How can someone makes tens of millions in Real Estate?

Sure, but, again, what is your question? The macro environment affects everything in finance, including real estate. Almost everything is cyclical except for specifically countercyclical areas like distressed/restructuring.

I mentioned REPE as a possibility because you can get started with less experience/money and take more of a JV or deal-by-deal approach. But in the current environment of tighter monetary policy, higher rates, and a looming recession, sure, RE does not look great. But some sectors (office/retail) are definitely worse off than others.

I’m not sure what your question is. As mentioned below, yes, there are some exceptions, and in some sectors of real estate, you might be able to raise money more easily. But it depends heavily on the sector (i.e., industrial and multifamily rather than office/retail in the current environment).