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When you say real estate, do you mean covering Real Estate clients for JPAM? I know their Private Bank has a group whose clients include developers, etc.
Or do you mean covering RE as an asset class. e.g. investments in REITs, etc.
i am confused too. do you mean the asset management side of jp morgan's real estate practice?
Yea - definitley not the IB or PB - but their AM group, which manages/oversees and I think does the acquisitions for their own portfolio.
Team is led by mark weisdorf, and is divided into two groups, investments and asset management. Work is pretty intense and hours are pretty heavy.
AM is generally long-only asset management and RE at JPM is a subset of the AM division. Manages mostly open-ended funds. Maybe some closed-ended funds but they largely avoided the closed-ended ended funds especially in Europe. Strategies are core to core plus so the targeted returns are probably 10-15%, max.
Yunt - who is Mark Weisdorf? As late as a few months ago, I'm pretty sure the Global Head was Joe Azelby.
If you are very into RE, then this is a good place to be. If not, then don't do it. You're likely to spend a considerable amount of time (esp as an intern) doing esoteric RE crap, like reading leases, cleaning rent rolls, etc... that will be more or less useless if you want to do corp fin. Also, you'll get paid AM / long only money, which means comparable base to IB but smaller bonus.
This is for the Analyst position in the Retail sector, correct? I know JPMAM is raising for their (closed-ended) opportunistic fund. Azelby is Global Head. Jim Walsh is head of Asset Mangement.
have a friend in the AM real estate group at jp.
hours are heavy - she said she worked 9 to 2 during crunch time. not sure if that's an exaggeration or not though.
comp is decent - 2 year ago , it was 60k base for a first year (standard across the firm), can find out about the bonus if you want - pm me.
experience - get to work on a lot of live projects though, so i've heard it's pretty interesting.
BUMP.
Any thoughts on J.P. Morgan Asset Management - Real Assets Summer Analyst Program?
good program. you do actual work. get projects that you "run" with other analysts. learn a lot. comp is what you'd expect. 10 weeks of pro-rated pay.
Has anyone heard back yet? I submitted my resume on the 10th, but have yet to get an e-mail or phone call. Should I follow up with MS?
,
JPMAM RE f-t analyst position filled
how do you know it is filled?
Spoke with someone I know over there.
Do you know the hiring status for 2014 ft?
bump
Either way. You don't want to work there. They just lost half their acquisitions team last year. Not sure on the details. Maybe the head guy is a dick or whatever but I never heard good things.
Well, one thing. For an analyst job this probably wouldn't be bad. Just be ready to work IB hours without the pay and have an exit.
not sure what bad things you did hear about this team, but they are very solid and have been doing plenty of deals lately. in the core space but dominate there. tons of high profile developments and own some of the most well known assets in the country. but they lay low on the publicity so you might not have heard their name in a press release (usually printed "institutional investors advised by JPMAM" if its printed at all). as an analyst, you will be working on many deals, otherwise they wouldn't have needed to hire you. it's extremely competitive to break in from outside of the internship program. would agree that bonus is below IB (salary is equal). have an exit if you don't want to work at this type of firm, but it's great for the niche it's in. plus you will make some great contacts. like some of the biggest names in the game. but i've said enough.
Yeah I know quite a bit about the assets JPMAM owns and who JPMAM JV's with. Just because you own "insert iconic building" doesn't mean your job is awesome.
Buying 4.5% caps and levering them at 35% can be boring sometimes.
I just heard that JPMAM real estate had large turnover last year, mostly mid-level or senior. I can't confirm this or the reasons why, maybe Dodd-Frank, Poor Mgt, not sure.
This is likely why they have the need to staff up, in addition to raising more money, of course they'll do it cheaply with analysts. I would agree it will be good experience. This kid won't however be making any contacts with the biggest names in the game as an analyst. He'll be cranking Argus, Excel and PP. Unless talking to your MD once in awhile is considered a contact.
Once again. It's a good job. They are a giant in the industry and it'll definitely set the kid up to move to other good shops or go to B School.
PF_CRE - I don't want to post something "negative" so I'll simply say that although you may "know quite a bit about the assets JPMAM owns," I don't think you have very accurate information on the group itself and how it operates. I have direct knowledge of the real estate group (I work at JPM and my group interacts with the real estate team on a daily/weekly basis), so I'll take the opportunity to give up to date, accurate information (both the pros and the cons) so future monkeys who are interested can gage there interest off real info. As mentioned previously, the group keeps a very low profile given its size, so I'm not surprised there is a lot of misinformation.
Operations: The group invests across 8+ capital sources (multiple commingled funds and separate accounts) and is one of the largest players in RE in terms of AUM (manage in excess of $40bn dedicated to direct RE). The majority of that capital (~$20bn) sits in a fund that executes a Core investment strategy. This fund purchases iconic RE in tier 1 markets. The rest of the capital, which is clearly a substantial amount, is dedicated to strategies that range from pure Opportunistic to Core+ (essentially Core with more leverage). So the group invests across the risk spectrum and has the capital to pursue virtually any investment they like. The group's reputation is definitely as a core shop, but that is because the flagship Core fund is best in class and the other activities aren't "marketed". One statistic that will surprise almost everyone is that that the group is actually the largest developer (by dollars) in the United States. To avoid confusion, they are the largest capital partner (funding the deals that developers do).
Culture: The culture of the group is very strong and not in any way comparable to investment banking. Hours are mild (think out of the office by 7-730pm, unless they are working on a deal and it's crunch time) and the people are collegial. Junior people are responsible for the models and analysis, etc. (obviously), but they are also included in everything that sr people do. If there is a call with a developer, the analyst in on the call. If a senior person is flying to California to tour a market and meet with operating partners, the analyst is on the plane and in the meetings.
Exposure: Those guys partner with Tier 1 operators and developers. When a JPM deal officer and analyst fly into town, they meet with the sr management of Tishman or Hines (if it's a development deal), etc. Because of the AUM they manage and the foot print they have, they are given an extraordinary amount of exposure across the industry and the analysts/associates are along for every meeting and there every step of the way.
Turnover: 3-4 mid to sr level people left in the past year. Some retired, others decided to launch their own funds. All had been with the firm for a long time. Reason for the timing is that the markets finally started to improve, so those who had wanted to strike out on their own finally had the ability to do so from a capital raising perspective. The group employs 250+ people, so the departure of ~5 investors impacts very little.
Pay: salary is equal to IB, bonus is equal to PB/AM (about 30-50% of salary, which is less than IB which can be 100% of salary).
Great description realestategirl11. I'm actually saying it's a good shop to go learn. They do interact with top operators and developers. But I am up to date. So are you saying there are 250+ "acquisitions" people at JPMAM? So they lost most of their "acquisitions" staff not accounting or Asset Management or capital markets or management. Easily 10 people. Also I'm not counting Junisus who acts separately and you can update me here but last I read the only money they raised was from JPMAM. .
They lost 2 acquisitions officers - 1 mid-level and 1 regional-head. I haven't counted them, but there are 25-30+ members of the acquisitions group. The platform transacts on north of $3.5bn per year, that cannot be managed by 10 people...
Nothing that I stated in my previous post relates in any way to Junius. They operate as a completely separate entity. In fact, Junius is not even in the same division. Junius is a part of the Private Bank (managing wealth for individuals) vs. Investment Management (managing capital for institutional investors).
I have a phone interview coming up for a Summer analyst position in this group. Does anybody know if they get technical, if yes, any examples of some technical RE questions?
Also, does anyone happen to know the structure of this group (Ex: 30% of employees handling acquisitions, 70% AM or whatnot)?
I would greatly appreciate any insight.
Thanks!
This is a core shop. It is good for an analyst gig, you will learn a lot as you will work on some of the largest deals in the market. It is not exactly a thought-generating shop though - the actual people are very much Prudential, New York Life, name-your-boring-shop type of real estate guys that rely heavily on their partners, third-party managers and brokers/advisers. It is viewed slightly better in the general market from a recruitment perspective because the static associated with the brand. The hours are good. The pay is below industry average, though to be fair there are not a lot of comparable jobs out of college. The general morale is slightly below average and I think most of the smarter people either leave or talk about leaving. On a positive note - they often stay because it is a fairly stable place to work, as evidence by the significant amount of mid-level executives that have no business being in their roles. The fact that Junius was set up in the first place was a huge slap in the face to the way management views the opportunistic capabilities of the shop, and candidly, nobody equates core investors as being the intellectual stronghold of the industry.
re: interview - I have no idea, never asked anyone how the interviews are. Coming out of college though, you will likely be asked to name a market you would invest in; define cap rate; walk someone through a CF statement for RE (base rent+opex reimbursements+percentage rent from retail sales+other income = revenue, less operating expenses (taxes, insurance, cleaning, security) = net operating income less capital (tenant improvements, leasing commissions, building capital) = unleveraged net cash flow. Maybe understand the concept of a DCF - project cash flows out on an unleveraged basis, apply a terminal cap rate / multiple to the year after your sale date and NPV it using a discount rate which is equal to what you think the required return would be.
A lot of good information on here. One additional point is that JPAM/RREEF seem to feed heavily into SWFs, which I would consider a positive in today's market.
@megawatt101 thank you for the insight. It seems to me though, that from talking to people in the group they do a lot more than just core investments.
@real assets - I mean, yeah, technically they do more but they have never had a respectable fundraising for any opportunistic strategy. You'll spend 5% of your time working on non- core/core-plus deals. And nobody views them as anything different in the broader market. Not trying to hate - solid shop for what it is - but this is not anything creative despite what they may tell you. Read between the lines in the below article - Junius was set up as a way to differentiate capital raising efforts between their core group and a hopeful entry into a decent sized opportunity fund presence and ultimately fundraising was really unsuccessful. Even Junius' google bio says "Junius Real Estate PartnersSM ("Junius") is the new U.S. opportunistic real estate investment division of J.P. Morgan Asset Management".
GOOGLE "JUNIUS REAL ESTATE - WSJ"
I disagree with some of what megawatt is saying. Does the market perceive the platform to be a "core" shop? Yes, I agree that they do. But perception isn't always reality and although the platform does do core really well, there's a lot more than one might think and I'll share some facts and figures to back it up so users can make informed conclusions.
The perception of "only being a core fund" comes from the fact that the "flagship" fund is a $23bn core fund. That is a lot of capital to put to work and that fund is the most successful in the category. The platform is perceived to be "core" because that's the bread and butter of the operation and it's the most visible in the market due to the AUM.
Does that mean that you spend 95% of your time working on Core investments and not doing more interesting deals? No, it certainly doesn't. As I mentioned in an earlier post, the platform invests across 12 capital sources. The "core" fund is $23bn. The platform also manages a $3bn core+ fund and a $3bn value-add fund. In addition, there are several separate accounts that focus on opportunistic investments (I'm not sure of AUM, but it's substantial). Now, if you add those numbers up you'll see that the platform actually invests more "non-core" capital than 90% of the "REPE" firms that are in business. In addition I would point out that the Core fund can invest up to 20% of it's capital in development deals, so even those investments aren't all "boring". Furthermore, even if you are underwriting or managing more core deals (by deal count) than value-add, etc. you don't spend more of your time working and focusing on them. There isn't much to be done. You spend more time on the hairy projects.
On Junius, I agree that it ruffled some feathers within the group. However, I disagree with the conclusions you've drawn from the move. Junius wasn't created because the platform didn't have the intellectual capability. Junius was created as a marketing effort to rebrand and beat the "core perception" which I agree is out there in the market. The fund was being marketed in an austere environment and it is extremely difficult to raise opportunistic capital without a track record of previous successful opportunistic focused commingled funds. Besides Blackstone many funds are having a tough time raising that type of capital. KKR comes to mind as a prime example. They are one of the most respected firms in the world, yet it took them years to raise the $1.5BN fund they just closed and a vast majority of the capital is KKR money. They couldn't secure outside investors. Junius was created as a rebranding, because in tough conditions it is hard to shake a market stigma of a "core" shop. It was unsuccessful, in part, because JPM, as a bank, is unable to seed with balance sheet cash.
All of that said, I think that there are definite drawbacks to being at a place like JPM. JPM is a "capital partner." If you want to be in the market with the asset day in and day out, stopping by the construction site on your way home and really seeing the operations first hand, you want to work for a local operator. Not a capital partner. In addition, if you work for a huge platform, you get very silo'd in terms of what you focus on (specific sectors or geographic areas, etc).
if im working on opportunistic deals i better get paid opportunistic money! :) therefore no JPMAM for me
@real estate girl - I get it. You work there. You clearly enjoy it. That is all that matters. I honestly think it is a strong shop for what it is and do not want that to be lost on this conversation. I also know broadly speaking most of the capital the have - Strategic, Income, Special Situation and a handful of small opportunity funds ($100-$200M maybe) - I am pretty involved in the industry and know several people well who are/were there, including a very close friend. I understand that there are pockets of separate account capital that allow you to conceptually be a little more flexible. My poorly articulated point is this: opportunity funds (whether it is Blackstone, Westbrook, Northwood, size is less of a concern) have a culture that is fundamentally lacking at the core-dominated shops, including JPM. While you might have the capacity to participate in ideas that other GPs pitch at you - there is not a culture of developing actual unique investment strategies - using the more famous examples now: (the now over played) single-family house REIT development or Blackstone's development of a logistics platform via buying single assets and portfolios and consolidating management. It is not just a local operator developer vs. fund shop dichotomy - there are plenty of creative fund shops. It is that you will rarely (never?) read an article that is talking about some first-mover, unique thesis JPMAM has on the US real estate market. And that culture does affect your thought process over the years.
All I got! Take it for what its worth.
@kmzz you'd be surprised what "opportunistic money" is in RE at the the jr levels... unless you're at Blackstone or Starwood, it's not corporate PE money.
@megawatt I agree with what you're saying. I just don't want the message to get lost that as a jr person, you're seeing all of these deals and building a skill set. I don't know how many jr. people at Blackstone (to name a shop you reference) are coming up with the creative, article making strategies. Whether it's the GP's strategy or your PM's, you are still the one underwriting it and at the jr level, that's what matters. But, as I said, I pretty much agree with your last post on the shop as a whole.
Does anybody know if this group is known to give case studies to complete during the Superdays for Summer Analyst Internships, or will it most likely be a take home case study?
Does anyone know anything more about how this group interviews? I am going in for a second round interview and was wondering what kind of technical questions I may be asked. I know it's going to be multiple interviews with different people. Has anyone heard of excel or argus tests during interviews at all? Any insight or advice would help. Thank you
Bump
Need help on second round interview as well Bay514
Curious...How is Junius ( JPM Opportunity fund) doing now? Considering the Morgan Stanley is back in the game with the 1.7B fund which is significantly less than their previous fund however still a successful raise considering the money the lost in 07.
How does that function? Junius is the acquisition guy and JPM AM are the asset managers for those acquired buildings/portfolios? Simple enough?
Not what I asked....let me simplify. Did Junius raise the original targeted 700MM and if so how active have they been/how are they perceived vs. the core group at JPM?
Any insight appreciated.
Junius and JPMAM are two seperate entities. Junius (I think) is operated as a cradle-to-grave shop where you buy and asset manage the investments (I don't think they have done a ton).
JPMAM has distinct acquisition groups (by region generally) and Asset Management groups (by sector). The AM group does DD during acquisitions and verifies some of the assumptions, but mostly focuses on managing the partners/advisors, financings, strategy execution and ultimately the disposition.
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JPM Real Estate Asset Management (Originally Posted: 04/09/2015)
Does anybody have any insights into the JPM Real Estate Asset Management group? Would an analyst position in this group be a great place to start a career in real estate coming out of college? Thanks for any input.
Los Angeles
JPMAM Real Estate Asset Management (Originally Posted: 09/12/2012)
J.P. Morgan Asset Management has a large group (about $30-35bn AUM) focused on real estate asset management. Does anyone have information or an opinion on the group and the experience it provides?
I'm at a top undergraduate business school (wharton, stern, etc.) studying finance and economics and have a connection to this group. I'm very interested in a career in commercial real estate investing and development.
Does anyone have insight into whether this group would be a good platform to start my career? Also, any insight into lifestyle, pay, culture, etc?
.
I'd like to know the internals as well. As far as information you can gather on the net, the JPM Opportunisitc fund is called Junius. They operate as an independent investment boutique with a focus on high yield, CMBS and hard assets.
JPM couldn't raise money for Junius so I believe they gave up on trying to run a discretionary, commingled opportunistic fund. JPM still invests a bunch of real estate capital through its Asset Management business in separate accounts, etc.
While I can't speak to the specifics of lifestyle, pay, culture, etc., I would guess that a job at JPMAM probably compares to a role at RREEF, Prudential, Lasalle or one of the other fairly large institutional real estate asset managers. It is a good position where I am sure you will learn a lot and earn your stripes in the real estate industry. It will not have the same cachet or prestige as working for one of the big real estate opportunity funds (which coming from a top target school, you have a pretty decent shot at either directly from undergrad or after a stint in RE IBD).
If I were you, my first choice would be to work at one of the big RE PE funds that hires straight out of u-grad: MSREF, Walton Street, and Starwood are the names in this bucket that I know hire analysts. My next choice would be to work at a top i-bank in RE IBD. Then I would put JPM and the other institutional managers.
I would largely agree with this hierarchy. One addition I'd make is that you might want to look at the Tishman Speyer's of the world as well (top developers w/ funds). Some hire out of UG, and as far as I'm concerned that is very valuable experience...
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