I was hoping some of the more-experienced CRE people here could shed some light for me. I currently work on the CRE debt side for a bank (2 years) and have realized that my strengths may lie more towards transacting with people and developing relationships versus, say the technical analysis/underwriting/evaluating that goes along with commercial real estate. I realize banks have roles which encompass these personality skills (loan originators) but I think I would be able to really maximize my value in other areas. Some sort of broker (sales, mortgage) comes to mind, but I fear the volatility of the market and ups & downs of that kind of job.
Does working my way into some kind of investor relations role at fund or firm sound like a good alternative? Something that incorporates capital markets, and supports a firm's capital raising efforts, yet has some stability of a base salary and bonus potential based on well one can raise funds? Any feedback would be greatly appreciated.
Isn't Investor Relations pretty much an HR role?
Not really, at least I don't think. He/She would be responsible for creating investor presentations, participating in investor calls, etc. I could be completely wrong, but I think it is quite similar to IB, except much more marketing focused (ie., still creating decks and still doing financial analysis, but probably shifting the dynamic more to the investor decks and less on the analysis side).
No. IR people generally come from ER backgrounds.
Depends on the firm. PE IR is a bit more involved.
We have a capital raise/JV group who's only responsibility is to go look for 3rd party AUM to manage. They are basically glorified marketing people - they create pitch books and meet with prospective clients trying to get their capital committed to us. They are pretty far from the actual assets though. But if that is what you are looking for, then yes, those groups most definitely exist.
Thanks for the replies.
Do these folks tend to get labeled as such, and pigeon-holed in that group? Generally speaking of course.
There are 7 or 8 in that group right now. Only one I know of has a hard RE background, everyone else is general business or marketing. They have enough knowledge to be able to follow along on super basic concepts, but the people on the GP side (like me) do all of the work and just feed them information.
My group is weird because we really encourage people cross training teams and stress mobility. But IMHO, none of them would even stack up to a 2nd year analyst on the AM or originations. I highly doubt that any of the people from the group would be able to move into a mainline group at this point in their careers (most are 40+).
Investor Relations depends on the firm. Some of them, especially publicly traded co's or large PE firms, may be more about responding to investor questions and requests, setting up reporting calls like 10k's if it's public, and quarterly/annual road shows, and the more administrative functions when raising new capital. Others are more capital market focused and about raising capital for new funds and deals. There are also placement agents within the big IB's (CS used to have a pretty decent group, no idea if they still do but 5+ years ago it was good) and independents like Atlantic Pacific that raise PE funds.
Relations are playing the important role in the life and our career so investors relation are most important in the business for a good deal. If we manage the our relation in the business with investors so we can get more profit in the business because our some business financial terms are depends on the investors. A good relationship can give the best results.
Investor relations here in SoCal with the folks I know basically keep their investors happy and up to date on deals. You would work for a sponsor and either expand or maintain their existing equity investors. In SoCal these can be folks with $500k to $10mil and up. Just depends on what you're doing and who you work for.
Their are a ton of companies out there with well under $1bil in assets. These are great companies to work for. It's all very hands on and cross functional.
If your firm bought a value add mixed use project with high retail vacancy and the building needed $25sqft of rehab, your job would not only be to get investor to put up equity, but you would also follow up with them as the project moves forward into stabilization. When it's time to list and sell you let them know that they have equity coming...shit like that man.
Investor Relations at a REIT is admin oriented. Press releases and answering Street questions on a VERY basic level. You are the intermediary between the Street and the finance guys who know all the details within the REIT.
Completely different than IR at a private equity fund. That would be more appealing and allow more exposure.
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