CMBS Internship vs. Private Equity Internship
Consider two options on the west coast, specifically Los Angeles.
A CMBS (commercial mortgaged back security) finance group with a brand name. They offer a paid internship (think $15+ per hour), and the recruiters mention 80+ hours/week for the summer. Intern will be doing all types of work, ranging from coffee runs to the following:
- Support team in evaluating, originating, underwriting, structuring and closing transactions.
- Develop financial modeling and analysis.
- Complete property site visits and inspections.
- Conduct financial analysis of leases, acquisitions, and cost structures.
Is this similar to what an SA would do in real estate IB? I can't tell the difference between this firm and a real estate IB firm. They have "Commercial Real Estate" as part of their firm name.
On the other hand, consider a private equity group that has $500m+ in capital. Is that a lot for a PE firm? The group has about 5-6 associates in business development, operations, etc. They all seemed like successful people, however the internship is NOT paid, and the hours are M-F 8-5. The job includes looking through CIMs and summarizing them, as well as tons of research.
So which position do you think is more valuable for a rising senior at a semi-target? Both of them claimed to consider full-time offers after the summer, but they didn't insist on it. They just claimed it has 'happened before'
Let me know what you guys think.
How interested are you in real estate? Is the private equity position real estate-related?
The "Commercial Real Estate" role, as you mentioned, is a CMBS role. In most bulge bracket investment banks, there is a "real estate investment banking" group, which sits in the investment banking division and covers real estate companies, generally public REITs. They advise clients on equity and debt offerings, M&A, etc. There's a separate group sometimes called "Commercial Real Estate" or "CMBS & Real Estate Finance" that executes CMBS financings and also revolvers and term loans to real estate companies. Real Estate IBD will bring CRE in for CMBS and balance sheet laons, or will go to the DCM team if it's a bond deal.
You probably get better property-level real estate experience in CRE than REIB, but it will not likely be looked at as "investment banking" experience and there are better exit opportunities from REIB.
I am in general quite wary of funds that do not pay interns.
Is the CMBS internship willing to train you with modeling? Or, is that something you already know?
Quasi aut delectus repudiandae natus molestias fugiat. Quia alias ut officia.
Velit corporis aut est alias odio eos ipsum. Repudiandae est reprehenderit maiores sit ex repellat et. Ea aspernatur dolor praesentium iure voluptatem aspernatur consectetur. Eveniet voluptatibus sunt quas ea. Modi inventore ut laborum nihil.
Modi qui saepe laborum impedit atque veritatis voluptas. Non dolore ducimus explicabo cupiditate accusamus error est. Assumenda impedit voluptates eveniet qui voluptatem sunt repellat. Qui ea doloremque iusto et tenetur harum. Delectus quaerat reiciendis sint ipsa dolorum ea. Magnam ipsa officiis doloremque animi ex.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...