Real Estate Private Equity - Hiring
Hi all - this is just based on observation - but for some reason I am seeing a ton of real estate focused analyst / associate positions pop up in various buy side shops.
Wondering if anyone has a perspective on what's going on in the CRE markets (assuming that's the important RE segment) that is driving all this hiring? Is it just because these firms fired a lot during the downturn and are hiring again? Or, is it an increase in redeployed capital in the space because the marked down assets are being put up for sale?
Or, am I just off, and is CRE / RE not really taking off?
Would be interesting to get varied thoughts.
RE is a hot asset class right now. With such low fixed income yields there is a lot of equity being pumped into RE to move further down the yield curve.
There's just so much equity chasing RE now, its pretty frothy out there.
Agree, there are a lot of analyst, sr analyst, jr associate roles open right now. Lots of money to put out. Most of the places I have talked to made it clear it's most likely a 2 year stint. Not a long term hire.
I am currently looking for a REPE position. Where are people finding these open positions? Most of what I am finding require prior experience. Does anyone know a good place to look if you are graduating college this May and looking for a REPE role?
If you are graduating college this May and are hoping to break into REPE, it is going to be challenging. With no prior real estate experience, it would almost be impossible. Not trying to burst your bubble or anything, just trying to tell you like it is.
Majority of the larger REPE firms do OCR in the fall semester but some do recruit in spring. Boutique firms are more of an "as needed" basis. They (usually) do not have a typical rotational / hiring program and to get in touch with these shops will require you to network your ass off. Exploit any connections you have and you might have a chance.
If you can't do REPE right out of school, look into other arms of real estate that could be a good segue into what you ultimately want to do.
Thank you Gentlemanandscholar. I appreciate the insight. I am trying to network my way in, but having trouble. The only places that are biting for me are brokerage shops. Which I wouldn't mind starting at, I just am scared I will be pigeon holed and not be able to move out.
From what I have read on the forums, starting out in brokerage isn't to bad if you leverage your relationships and don't stay too long.
I agree, brokerage isn't a bad place to start, I’m currently in brokerage. Correct me if I’m wrong but try and target Investment Sales or Capital Markets rather than leasing in the world of brokerage. IS and CM are a little more analytical and are more applicable to PE.
Commercial lending in the CRE department for a financial institution is another path you may want to consider as well.
Tengleha, thank you. That is what I thought. However, I am scared that I will not acquire the appropriate excel / evaluations experience. Is this a legitimate concern?
Thank you SilverTRD.
pudding, where do you currently live and where do you want to work?
Agree that activity has picked up. My team is focused on more equity deployment than the debt deals we were doing a couple years ago. Have also hired a couple of analysts to help out.
Thanks for the comments everyone. Are there any particular sub-segments / markets etc. that are really hot?
Multifamily is hot, some would call overheated. Which is driving money into (mainly) industrials.
Agreed. Houston multifamily slightly overheated.
lol
Nearly everyone is bullish on Houston. Multiple cranes per block inside the 610 loop, especially for multifamily.
Where are you finding all these job listings? Thanks!
try job digest.
http://www.selectleaders.com/
Don't let the ultra-generic name fool you, you'll find some respectable postings on here
The asset class is doing well globally right now. Perhaps more significantly, equities have picked up strongly over the last 2-3 years, so pensions and other institutions are over-allocated. They can tell equities are hot, but probably have less experience in RE and feel comfortable because they can see nice yields persisting, particularly if you're looking at a levered cash-on-cash where current rates are and saying "I'm getting an x% yield!" ... so funds are being raised again (hurray!) and quickly. It's not gonna last forever, but there's a round of funds that has been and is being raised that's gonna need to get deployed (regardless of what valuations say), and there's going to need to be junior guys to help with that... The trend is pretty noticeable in Asia, and even what limited view I have to the broader global markets fundraising seems to be back on track... good times.
Atwoodt, I have PMed you. Thank you so much.
No its not such that the CRE / RE are taking things off. Its only the fact that anyone who has got contacts or had some sales perspective is taking the lead.
I would add that LinkedIn and Indeed are worth keeping an eye on as well as the weekly Real Estate Alert grapevine section.
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