Well. I made it 10 years without being laid off in REGAL IB, but last week, it finally happened, and am beginning the process of figuring out what’s next.
Question I have for you folks is, as you get more senior in REGAL (Real Estate, Gaming and Lodging) IB, where have you seen folks go? Flip side, those at RE firms (PE, Developers, etc.), have you seen former bankers enter? In my 10 years only a small selection of Exec. Directors & MDs have transitioned, and most have been other banking opportunities.
Talking with other banks is obviously a possibility, both at Exec. Director and MD levels. Guess I’m just looking for thoughts on where, aside from banking, a senior person would realistically go, to broaden my search. Feels like you need to take a step down to go up; as most firms bring in IB Analysts, etc., who grow with the firm into senior roles versus bringing in outside hires.
Anyone’s input / experience / if you know of firms looking at that level would be welcomed. Would generally love to connect with anyone gone / going through the same, or to catch up on RE in general (I have a feeling I am going to be quite bored once this sinks in).
Only move from banking side at that age I’ve seen is into some type of Debt Capital Markets role at a big firm/fund. Likely would be a paycut for you though.
I’ve seen Director level people join without a seniority cut from regal banking to the direct real estate investing teams of Canadian pension funds. These businesses seem to have fewer hang ups about the “right” background. Probably a slight pay haircut.
You’re right that most of the exits from REGAL coverage banking into principal real estate investing happen at the analyst and some associate level (due to the hard skills gained in the 1-3 years). At the senior level VP+, you bring an entirely different set of skills more aligned with understanding corporate-level strategy, equity/debt/M&A execution, and cultivating/expanding relationships. After 10+ years, it seems most of the exits are to REITs or senior, corporate roles for the clients you may have covered as compared to an acquisitions/development role. May be an intermediary step to get into a direct real estate investment role as a senior-level executive, but any of the larger institutions will almost always take the senior director who had ten years of executing property-level transactions vs. ten years of IB coverage. At this point, most people at your level care more about comp and lifestyle so seen most transition to executive roles in other functions with salary and equity vs. taking a step down and proving yourself/grinding up the ladder another half decade. Sorry to see about the lay off, but ten years of IB is a testament and any employer in the industry should be excited to have someone with your background and aware of the learning curve!
Thanks, all. I think everyone here confirms what I had thought based on the one upper MM and one BB that I’ve been at, so appreciate it.
I lucked out in having a good set of clients covered that I think I’ll be able to get into a senior slot at another firm.I’m completely fine with that (wouldn’t be here in banking still if I hated it), I just wanted to know what others had seen / where else to look as I start looking.
It all makes sense and consistent with fund names I know that it doesn’t make sense for sr bankers to come over. Unfortunately at 31, I’m unlikely to get high seniority roles at REITs and other owners - I’m just “old” for the finance side of things.
Thanks!
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