Help: Previously set on working in REPE, now as a Sophomore I have no idea where I should work at after college..

Hey guys, so just a bit about myself, I'm currently a sophomore at a non-target university on the west coast majorly known for ranking top 10 in their real estate program. I'm double majoring in finance & RE, was previously super set on trying to break into firms like Starwood, Hines, Brookfield, etc. but have recently gotten into a career-choosing crisis where I'm literally doing more work on WSO than my freaking stats homework so just figured I'd consult those with the most experience here and listen to different opinions.

My career goal has always to be in the PE side, either it be in REPE or traditional. Initially I was extremely interested in opportunistic and value-add RE, and planned to only do these deals for the rest of my life but now after discovering more about the route of IBD to traditional PE, I've had a change of heart. In terms of the type of work I want to work on, I think I enjoy the impact & intellectual challenges of real estate as much as traditional PE, so they both hold the same weight here, I guess my question to you guys would depend on personal factors below:

1. Hours: I've hopped on a couple calls with analysts and associates in IBD at BB & MM firms and to my surprise none of them actually hates their job that much. One guy at DA Davidson literally told me he would not want to be anywhere else, which installed in me a lot of interest in the field. Initially, I didn't want to do banking because of the crazy work hours that analysts are discussing about, but after hearing that 80-100 hours week are rare and it would be more like 70 a week, I would have no problem working in the field especially for 150k all in. However, I think REPE hours would be less and maybe on par if you're at BX or Starwood, but since I want to have a life outside of work, start a family in late 20s and invest in RE on my own, I want to confirm is the 70 hours a week is true and if yes, then do you think it's possible to invest in RE and have a social life outside of work in IBD? I also don't mind working at home or so for a couple hours on the weekends but just not at the office.

2. Career progression: I've also heard IB gives a wider exit opp and great for traditional PE whereas if you enter REPE right out of undergrad you might be pigeonholing yourself, unless chosen to get an MBA later or so on. If you've worked in REPE, do you think the work you do is still interesting after a couple of years and if you've worked in IBD, do you think it was worth it to move into PE or do you think you can break in from other finance fields like REPE or AM for example? (I know this is harder than going from IBD but just want to see if it's viable) Also if you were in IBD and moved on to REPE, what prompts you to make the decision?

3. Comps: I've heard REPE pays a bit less than traditional PE, is this true or are they on par with each other? Are the hours the same for REPE and PE, heard mixed things so just want to confirm. 

4. My internship experience has mostly been on the real estate side with some random work here and there: I did work in investment sales, startup that focuses on risk assessment for VCs, real estate owner/operator, asset management and finally a bit of trading on my own. I know if I want to go to the IB route to PE, I might need to make a pivot now to more finance internships to guarantee my spot; but that would take a significant amount of time and prep work comparing to just doing real estate right now.

5. Is there a better job in terms of lifestyle, interesting work and great pay outside of REPE and PE? I've heard about LO AM but not super sure how to navigate.

I figured if I could land a role at top REPE firms (by the grace of God) then maybe REPE is the way to go, but if I don't land these positions, what do you guys think about IBD vs REPE for all the factors above? Would love to hear opinions for people who've worked in both or have considered one or another in their career timeline. Thank you.

5 Comments
 
Most Helpful

If you are genuinely interested in REPE, stick with it. Top funds like Brookfield, Starwoods, Blackstone, Ares, Carlyle roughly pays on par with PE salaries or maybe slightly less with better working hours. If you want to do IB, id aim for top banks for junior summer internship given your profile.. DA Davidson wont get you anywhere..

 

Thank you for your input, so you know if their funds are majorly opportunistic/value-add investments or if it’s more of core/core plus acquisitions?

 

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