Back to banking or internal lateral?

Navigating career moves within the finance industry requires a strategic approach, especially when considering a shift from infrastructure private equity (PE) at a mega fund (MF) to real estate private equity (REPE) or real estate credit. Here's a breakdown of your options and some considerations for each:

Internal Lateral to RE Team

• Pros:

  • Seamless Transition: Staying within the same firm can offer a smoother transition, leveraging existing relationships and understanding of the firm's culture and processes.
  • Internal Network: Utilizing your internal network can facilitate introductions to the RE team, potentially making the move easier.
  • No Burned Bridges: An internal move, if handled delicately, is less likely to burn bridges compared to leaving the firm.

• Cons:

  • Limited Exposure: The scope of learning and exposure might be limited to the firm's approach to REPE or RE credit, which might not align with your broader career aspirations.
  • Internal Politics: Navigating internal politics can be tricky, especially if your current team is not supportive of the move.

Networking with Top IB Real Groups to Re-recruit for Buy-side

• Pros:

  • Broader Opportunities: Exploring opportunities outside your current firm can open doors to a wider range of experiences and potentially more aligned with your career goals in REPE or RE credit.
  • Market Perspective: Gaining experience in a top IB real group can provide a valuable perspective on the market, enhancing your skill set for a future move to the buy-side.

• Cons:

  • Risk of Burning Bridges: Leaving your current firm, especially as an incoming analyst, carries the risk of burning bridges, which could impact future opportunities within the industry.
  • Recruitment Cycle Timing: Timing the recruitment cycle correctly is crucial, and missing the window could delay your plans.

Recommendations:

1. Internal Conversations: Start by having discreet conversations internally to gauge the possibility of an internal lateral move. Approach these discussions with a focus on your career development and interest in RE, rather than dissatisfaction with your current role.
2. Networking: Simultaneously, begin networking with professionals in top IB real groups and the REPE/RE credit space. This will not only provide you with a broader view of the market but also prepare you in case an internal move is not feasible.
3. Mentorship: Seek advice from mentors or trusted advisors within the industry. Their insights can be invaluable in navigating this decision.
4. Damage Control: Be transparent with your current team about your career aspirations, but frame it in a way that emphasizes your commitment to your current role and the firm. This can help mitigate potential fallout.

In conclusion, carefully weigh the pros and cons of each option while considering your long-term career goals. The finance industry values specialization, but also flexibility and the ability to navigate complex career paths.

Sources: Lateral or B-School?, https://www.wallstreetoasis.com/forum/private-equity/a-guide-on-how-to-navigate-on-cycle-pe-recruiting?customgpt=1, Lateral to better bank and recruit off cycle or stay at UBS and recruit on cycle?, Re-Doing 2 YR IB Analyst Stint, Best Practices for Finding Lateral Opportunities