I currently work in CRE development in the southeast. Been working at my current shop for 5+ years now. Prior to that I worked in CRE lending for two years.
In my current role, I handle all underwriting for my firm and some asset management. Tons of modeling and deal experience. Love the shop I work for. Great people. Unfortunately, comp is mediocre and my equity is worthless :(
I am a bit burned out on RE. The work is no longer interesting. Honestly most of the industry is just a grift - setting unrealistic expectations, chronically underperforming, while siphoning fees from investors into the pockets of sponsors. I can see the writing on the wall - the industry is going to consolidate massively over the next 10 years and while my firm might survive, it won’t thrive.
I’m thinking about a career change into ER. I really enjoyed that sort of work in undergrad. I did several pitch challenges and helped manage the student investment fund.
A few questions:
- Am I crazy for even thinking this?
- I have plenty of free time over the next 3-4 months due to injury rehab. Should I take CFA L1?
- Should I focus my networking and job search on smaller local/regional shops?
- Any other things you might recommend I do or look into?
Thanks in advance
Based on the most helpful WSO content, here's what you need to know:
Are you crazy for thinking about switching to ER?
Absolutely not. Many professionals transition into equity research (ER) from other industries, especially if they have strong analytical and modeling skills like you do. Your experience in underwriting, asset management, and deal modeling is highly transferable to ER. Additionally, your dissatisfaction with the current state of the CRE industry and your interest in investment analysis make this a logical pivot.
Should you take CFA Level 1?
Yes, pursuing CFA Level 1 can be a great move, especially since you have free time during your injury rehab. Passing Level 1 demonstrates your commitment to the finance industry and provides a solid foundation in financial analysis, which is highly valued in ER. However, keep in mind that the CFA is a long-term investment, and while it can help you stand out, networking and practical experience are equally, if not more, important for breaking into ER.
Should you focus on smaller local/regional shops?
Yes, targeting smaller or boutique ER firms is a smart strategy. These firms are often more open to hiring candidates with non-traditional backgrounds and may value your unique CRE experience. Additionally, smaller shops can provide more hands-on experience and opportunities to build relationships with senior analysts and institutional clients.
Other recommendations:
This transition is challenging but achievable with the right preparation and strategy. Good luck!
Sources: Recent grad looking to get into ER seeking advice, What roles can I get with a CFA, Q&A: 3rd Year PE Associate ($10bn+ AUM, MBO/LBO, equity, mezz, distressed debt), Where does ER go from here?, Top 10 Undergrad, Top 10 MBA... Unemployed 3 months, 2 not great offers to decide between
Not in the industry, but I’d imagine networking with REIT, gaming & lodging, and maybe homebuilder research teams would be your best bet given your background. Can’t speak to anything about the CFA or credential side, but I’d focus on middle-market and independent research shops with those coverage areas.
I know someone who went from ER to CRE, which is probably an easier move, but agree that you should target teams covering REITs or the like
Do not take my word for it but seems like cfa is a good place to start on attempting the switch
Honesty, thought u were advocating RE over ER from the title and my thought was “yeah probably”
All to say, grass may not be greener
Ah thanks hadn’t thought of that. Will change the title.
Why do you say grass might not be greener?
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