Incoming Senior at Target Non-Ivy looking to enter REIB. What are some groups that should be on my radar, whether it be RE groups at BBs or more boutique firms.
Relatedly, if my end goal is REPE, is REIB the most logical first step or should I be looking into AM at a bank or REPE firm.
Any information would be greatly appreciated!
Thanks
| +48 | Being asked to stay behind and train my replacement | 14 | 3d | |
| +45 | New Comp Database - Google Form (Now with Data Validation) | 24 | 5h | |
| +30 | What does REPE actually do? | 12 | 1d | |
| +25 | Leave brokerage to be GP | 1 | 17h | |
| +24 | Seeking Career Guidance in Real Estate Development Post-Graduation | 3 | 7h | |
| +24 | Public Homebuilders | 9 | 1d | |
| +22 | REPE/Development GPA | 15 | 1d | |
| +17 | MSRE/MSRED with no RE experience; Naive to think I’ll land a job afterwards? | 4 | 3d | |
| +16 | UC Berkeley MRED vs Columbia MSRED? | 2 | 5d | |
| +15 | Hospitality Finance - Perks? | 3 | 6d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Personally, I went from Target Non-Ivy to Investment Sales as an analyst -- best decision ever. You'll see a tremendous amount of volume and meet a ton of brokers... leading to connections, access to deal flow, and an understanding of how the transactions work. After a year or two of underwriting brokerage deals, apply for a REPE... TRUST ME they'll come running. REPE im at just hired 5-6 of these guys.
@theofficeguy, this is exactly where I am puzzled. I have been extremely confused about how REIB (at a BB) sets anyone up to enter REPE if REPE is looking at the property level. I wouldn't think that you would gain any relevant experience in REIB if you are just working on LBOs M&A etc between RE companies.
Anyone have any opposing opinion about this?
REIB analysts are smart. Thats it. When you’re hiring a kid with 1-2 years experience, the work they’ve done at their previous job isn’t nearly as important as their potential to do good work for you.
IB analysts will have Good modeling skills and have experience working long hours and producing high quality work. I think there are only a few companies that exclusively hire BB REIB analysts. So there are plenty of other ways to get your foot in the door at a REPE firm. Also if you can model the LBO of a real estate company, a property level acquisition will be easy to learn
Just to provide some additional perspective. My firm (REPE) recently hired a new acquisition analyst and interviewed many candidates from different backgrounds, including traditional IB and CRE Investment Sales. One of the IB candidates discussed his M&A experience with a RE Property Management firm that we were familiar with. Though he had an impressive background, we ultimately decided to hire the guy with Investment Sales background from an inferior school due to having a better understanding of deal (property)-level underwriting, processes, etc.
It's more than modeling experience and long hours. Understanding what the main terms of an LOI or partnership term sheet are important, debt/leverage concepts of individual properties, knowing when it is appropriate to email a broker vs your GP/Operating partner, knowing the players in town, market dynamics, microeconomic/political conditions that can make or break your deal, just knowing what questions to ask is not something I would expect from an IB or BB REIB analyst.
Hmm sounds like you work at an owner/operator and not a true REPE
That is incorrect. I work for a middle market LP mezz/equity shop that just breached $1B in capital commitments. We typically invest in deals on an 80/20 to 95/5 structure with our GP operators/sponsors depending if our equity is senior or JV. We are not owners/operators.
Sounds like you do not have much experience in the industry. "Good modeling skills" are actually not that important at REPE shops. You are underwriting so many deals that you typically use templates anyway. Poking holes in sponsor underwriting is important. This requires property-level knowledge, not experience with macros and excel VBA.
I think this is over simplified. Yes, an analyst from Eastdil will have more directly transferrable skills to most REPE shops, but that doesn't mean they still won't hire more from REIB backgrounds. My old shop was $20BN AUM and we exclusively recruited IB analysts (note: most were not REIB) because IB analysts are accustomed to (a) putting in the work (b) building error-free models, (c) generally being able to process a task without much guidance. The RE technical skills are easily learned. That said, it's a stupid recruiting practice because the Eastdil guy could generally run circles around an IB analyst in terms of market knowledge, deal structuring, debt financing, etc. but I have seen guys from brokerage backgrounds struggle to adjust to a more rigorous environment when they jump to REPE.
Used to be MS and GS were by far the best for an analyst bc you had the opportunity to do advisory and underwrite on the principal side. Not sure what that situation is now.
Currently advisory is driven by who’s most aggressive with their BS. This kinda sucks for everyone. Clients most because we get ibanking advisory that is so obviously subpar.
Best pure advisory is still probably GS and MS. Next comes the big balance sheet guys like BAML, JPM, Wells (incl Eastdil), Citi, DB