PE Real Estate summer internship vs IBD offers

Looking for help in making a decision about a summer internship.

I'm still recruiting (no offer yet) for MS PE Real Estate San Fran group. But I have offers from CS, Lazard, JP Morgan, and Barcap all IBD.

What do people overall think?

Should I only be interested in MS if I'm certain about going into real estate?

Thanks

 

I didn't know MS did RE PE in SF.

I think that would be solid. You can make money in RE just like any other area (and you value it in many of the same ways). Also, I'm sure as a summer, you will be in the running for top IB positions next year if you don't like it.

Do you know if MS does any corporate PE on the west coast?

 
7S:
MS is very strong in real estate PE

if you want to go into real estate then go ahead

however if you want to keep your options open then i'd choose IBD

i interviewed with the same group (not in SF) and didnt proceed cause i wasnt that interested in RE

agreed. i work in re finance and i would recommend traditional ibd over re finance specific jobs. re finance is a very specialized skill set. traditional ibd would def allow you to keep your options open to the broader finance industry when you decide to exit. also, its easier to go from ibd to re finance than to go from re finance to traditional ibd.

--- man made the money, money never made the man
 

similar to the comments above, i work in re private equity and would suggest starting with ibd and moving into re focused ops later, if it still interests you. i have many friends that had difficulty landing other opportunities when pere shops cut headcount last year and the year before. ibd gives you a very marketable skill set, particularly as a summer intern.

 

Could you guys shed some light on your experience in re pe? Would you recommend it for after an analyst stint? Is comp at the higher levels similar to corporate pe? Thanks

 

the experience isnt unique. a lot of modelling, excel and argus. you should not consider repe UNLESS you plan on dedicating a career to real estate. you have to have a genuine passion for this side of the business.

--- man made the money, money never made the man
 

^^^ Def possible. Not sure about tishman and reIated specifically, but I have a family member who was in Lazard TMT and now works for a real estate investment and development firm. You're gonna have to network though. I actually think his MD's hooked him up with the firm he works for now.

 
Best Response

tishman, related, and trammell crow operate like investment banks when it comes to recruiting. basically, there are 2 points of entry: right out of college and and right out of b school. personally, i i think its very rare to get recruited in 'off-cycle' or 'experienced' recruiting into one of these three, but i could be wrong. however, these guys are pretty unique in this way.

for just about every other regional developer, recruiting is almost always untraditional and off-cycle. regional re development tends to be HIGHLY fragmented. basically, there are a TON of smaller firms scattered all over. think of these as like middle mkt pe firms; they run very lean and do not have in house HR depts. recruiting into one of these guys is very untraditional, usually through networking and 'just-in-time'. for one of these guys, practical re experience is a must, as you are expected to contribute from day one. there is very little in the way of formal training.

so basically, if you want to do re, then do re. dont do ibd for 2 yrs to lateral into re if re is what you want to do. the option to lateral into re from ibd will be open, but you would be trying to swim upstream.

--- man made the money, money never made the man
 

IBD out of undergrad.. Don't do pe this early.. especially PERE, which is where a lot of people end up.

-- "Those who say don't know, and those who know don't say."
 

heidelberg10...

Going to work for MS in RE (MSREF?!)...well MSREF is completely f'd. They're ceding control to banks on investments across the globe. Investments amounting to c. 20% of the equity in the last fund (not the one closed in 2008) or now worth 0. Plus, good chance it gets spun off due to regulatory changes, or just because MS wants to focus on other businesses. The current fund was circa. 7bn of equity, now there's about 3 bn left. A decent amount, I suppose, but I think that's spread across the globe. Given where we are in the RE cycle, it's probably a good time to join IF you get an offer but they aren't going to hire a ton of people for acquisitions and they have guys around for asset management so I think the chances are very slim.

As a general comment, RE PE is a great place to be if you are very interested in RE, but the skills are much more specialized than in a generalist banking group, so you narrow your future options. RE is a CF business so you don't really look at balanace sheets and don't do much accounting, so going to another industry can be tough. Plus, (in the US, at least) RE isn't always quant/mechanically sophisticated, so may not be the best place to hone technical skills.

 

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--- man made the money, money never made the man

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