BX REPE vs BB IBD
Hi guys,
Title says most of it. I have received SA offers from a top BB IBD (think GS, MS, JPM) and from BX REPE (acquisition team).
I don't know much about real estate investing as my background is focused on classic M&A but still real estate sounds quite interesting. I am really considering both options and I am really not sure which choice will make me the happiest at an undergrad level. Landing at a mega corporate private equity fund is my middle-term goal but I am really opened to other career paths too. In that sense, I am worried that if I take BX offer, it will be very difficult for me to leave RE. (Not sure being from BX REPE makes a difference relative to other REPEs) In terms of optionality, IBD clearly seems to be a better option. But still, I have to say that I hardly see myself declining BX offer.
Would appreciate anyone's perspectives on the above.
I'm based in Europe so this might differ a bit since PE Recruiting is different but I will give you my understanding on how this would work out here because it's probably comparable.
REPE is different from Corporate PE, this difference is more important if you are at a small firm, if you are at a MF or large REPE shop the work you do is comparable to the work in Corporate PE.
BX REPE makes a big difference from other REPE's, class size is small and not that many people decide to leave but those who leave in Europe are usually able to land at other UMM/MF if they want to do Corporate PE. There is even some people leaving for HFs. This is understandable since it is a top buyside group in Europe, where you will be working a ton and people are elite.
In terms of optionality, if you think you might want to pursue other corporate like exits I think BX REPE will limit you more. Even if BX is one of the strongest brands in finance it is less known to the average person in the corporate world compared to GS/MS/JPM. Also believe that the work that you do in BB IB might be more useful for corporate life than the work you do in REPE.
As a conclusion, if you are certain on wanting to do buyside I will go to BX REPE. You'll be already in a buyside role, top firm, prob better pay and more interesting work. Don't believe that I'll be hard to recruit for other PE roles if you don't like it there. However, if you want more optionality, BB IB will always give you that.
There's not much to say here. If you want RE, which honestly I wouldn't want to start my career in now..., take BX. If you have interests outside of RE then I would do IBD.
Real estate just went through a massive bull run the last 15 years, honestly I would go IBD. You would be buying high selling low lol.
This is incorrect. Largest RE buyout fund ever recently closed by BX, major buying opportunities as shit hits the fan. OP, it’s clear as day, take RE-Acq…just make sure you get the return.
yeah, just wait until BREIT needs to start unloading properties to meet investor redemptions, pulling down the comps and flooding the market with inventory just when no one wants to touch it. Don't forget, it's a levered fund with exposure to interest rate risk (though not sure of the magnitude of which).
If BX was as smart as they're perceived, they'd start marking down the BREIT val with the hopes that investors stop pulling money out - why tf do investors want to be charged an inflated management fee?
Don't fight to fed on the way up, and don't fight the fed on the way down. They have told us they're coming for real estate vals (especially residential RE which BRIET has a ton of exposure to).
Ok I'm going to correct you on a few things here because you are not really well informed.
First of all, "BREIT needs to start unloading properties to meet investor redemptions, pulling down the comps and flooding the market with inventory". Not really true since redemptions aren't THAT large and they've just sold their stake in Mandala Bay and MGM (at above book value btw).
"Levered fund with exposure to interest rate risk" - They had a hedge against interest rates going up for the next 6 years, they have made something like 4-5BN just because of this is hedge which is why BREIT is up this year.
"they'd start marking down the BREIT val" They have marked down valuations and the portfolio is current valued above a 5% cap, which doesn't seem crazy to mee considering that rents have gone up 10% YTD (most of the portfolio is CPI linked)
I understand that BREIT situation makes for a good headlines but you really should inform yourself before making comments such as the above, especially since you are a VP and you can understand these things since you have been in finance for a long time. I don't think people in BX are as dumb as you think they are...
CRE is hurting, if anything I think you’re coming into the industry at a low point/great time for young guys. Not going to be many analysts getting live deal experience in coming year plus.
If you have significant transaction experience (with the added prestige of a MF REPE) you could be on a superstar trajectory at the beginning of another hot market in a few years after the analyst grind. This is all speculative though.
IBD SA stopped recruiting 7 months ago.
Gonna be a rough few years for all markets, but especially CRE - and especially the behemoths like BX who have amassed huge portfolios in the past few years (without writing down their internal valuations). Lots of chatter about the non-public BX REIT platform in particular getting a ton of selling pressure currently and more expected during this down cycle.
As a new person in the industry - you should be thinking about 1) long-term what industry do i want? but also 2) will I get on a good trajectory early in my career that I can stay on?
CRE at BX is less likely to be a good start for your career trajectory than IBD. I'd go with IBD.
You had to be top of the class to get BX RE at my target, vs lot of randos got IBD gigs at GS/JPM/MS....
Even for B-School admissions, I would imagine BX RE would give you a better shot at H/S. Know quite a few people who did IBD at GS/JPM/MS and couldn't get into H/S.
I do a bit of real estate on the side, so I am biased. But I would definitely take BX RE. It's easier to go entrepreneurial in real estate also vs being an independent sponsor or a startup HF.
you probably went to a mediocre target then lol. If the top kids at your school wanted to go into real estate then that speaks volumes
😭😭
Any top tier target will have students gunning for buy side roles over sell side roles. BX houses the best analyst program you can get out of undergrad and real estate is their bread and butter. You can do a quick search to confirm that the background of those kids is far better than those who are in BB IBD.
The only reason this is even up for discussion is because real estate is niche and you’ll have more career flexibility in most other coverage and product groups in BB IBD.
Where did this rep that buy-side RE is a non-target sector come from? My RE shop is filled with HYPS undergrads, HSW MBAs, and BB backgrounds. And when they stay, our MDs make multiples of what the IB guys do.
Though brokerage is def a non-target gig, will give you that, no one at my school would have ever even considered it. But plenty of people were gunning for REIB or REPE.
CRE has been on a unbelievable 30 year run (with one major Interruption during the GFC). It has looked easy to get rich in CRE, for almost an entire generation. Don’t bet it will be the same for the next generation.
I heard the same thing since graduating college and real estate has kept increasing. You could also make the same claim for the sp500...
There's still a lot of value add you can do in real estate rather than just levering up and buying vanilla multifamily. Development, rehab, opportunistic investing, etc. can all be very lucrative.
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