Debating in PE or REPE

Starting ft at a top generalist group this summer. Preparing for on cycle and im debating whether to recruit for REPE or traditional PE. I have an interest in REPE and I think it can be more niche recruiting. However, I like the optionality that PE can provide.

I am concerned because HH want you to express your interest and I feel like mentioning you want both wont be the best strategy. Any advice?

Comments (16)

  • Intern in RE - Comm
May 16, 2022 - 9:21pm

Do PE. If you don't like it, get an MSRE or MBA to switch to REPE.

  • Analyst 1 in RE - Comm
May 16, 2022 - 9:37pm

Lol that's an expensive proposition. How about he tries to make an educated decision right now and possibly forego the expense of two years of school as well as opportunity cost? At one point or another, you typically have to specialize to build a strong skill set and equally as important, Rolodex. OP, Choosing something you're interested and getting started early, more often than not, is a huge advantage. What are the reasons you think you are interested in PE as opposed to REPE?

  • Intern in RE - Res
May 16, 2022 - 10:19pm

I believe it would be a new experience and I like the markets so I would like to transition to a HF. In addition, while maybe following the heard I think it would be a safe bet. But I cant think of a concrete reason to go traditional PE

  • Analyst 2 in IB-M&A
May 16, 2022 - 10:58pm

Can't really comment on the REPE vs PE but can provide some insight on being indecisive and navigating concurrent recruiting for multiple strategies.

I am at a non-BB/EB bank so the typical exit was to MMPE, especially with more of a growth/tech focus (I'm in TMT). Very few UMM/MF exits from my group historically, but I wanted to keep that door open. Honestly didn't know how I would decide if I had a good growth offer vs a traditional buyout.

Because of this, I basically co-recruited for growthy tech-related MMPE roles while also targeting UMM/MFs. Luckily, there's enough headhunters this is possible.

I probably took it to the extreme, but I basically had two personas - one was "I love growthy tech, want to go to some fund writing $200M checks because that's the work I do now" and the other one was "the deals I do now aren't interesting, want to work on bigger companies that are more established". I had two resumes where I tweaked language and different interview responses for each.

I then went through each HH (getting client lists is essential here) and sorted them by which to bucket they fit better. For me, it was basically CPI as UMM/MF and everyone else was MM. I could then come across as super decisive in intro meetings even though I had no clue what I wanted.

Ended up getting interviews in both (makes prep harder though because you have to prepare a lot more responses) and actually interviewed in both buckets. Ended up taking the first offer I got but was pretty happy with how it worked out.

So you can probably kick the cab down the road and recruit for PE with some HHs and REPE with others

  • Intern in RE - Res
May 16, 2022 - 11:13pm

Thank you for the advice, that makes complete sense. I think some of the HH have clients in REPE and PE that crossover, which I would want to work for. How would you approach this?

  • Analyst 2 in IB-M&A
May 16, 2022 - 11:20pm

Do you mean if they cover BX both for PE and REPE? Or if a HH has both PE and REPE funds.

Either way you'll make sacrifices- this whole strategy meant I didn't even "apply" to some of my top choice funds. Ie if a HH covered 6 great growth funds and one MF, I didn't even throw my hat in the ring for the MF because it would undermine my story.

May 17, 2022 - 11:42am
himib1637373, what's your opinion? Comment below:

bump

Array

  • Analyst 2 in IB-M&A
May 17, 2022 - 12:13pm

good question - in the same boat. how are you thinking about returns and total comp down the line? aren't REPE returns generally lower than corp PE? I guess this doesn't really matter if you're at a BX? would love to connect

  • Analyst 1 in RE - Comm
May 17, 2022 - 5:08pm

Not necessarily. If you take a look at the cap rate compression multifamily and industrial assets have experienced as of late, the returns for some groups have been off the charts. I'm sure the equivalent could be said for Corp PE as well. Nonetheless, I think returns are more dependent on the strategy. For example, if you compare core, stabilized real estate returns to opportunistic PE transactions, then of course, returns in PE would be higher. Applies vice versa as well. Wouldn't think of it in terms of returns as there is a lot of money to be made on both sides. Would more so think about it in terms of which business interests you more.

  • Analyst 2 in IB-M&A
May 17, 2022 - 9:47pm

makes sense. stupid question, but why is it the case that corporate PE asos/principals are making more than REPE? or are my numbers just badly misplaced.

also, seems that there are less REPE funds out there, may be limited in option? as opposed to the several MF out there for corporate

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  • Investment Analyst in RE - Comm
May 18, 2022 - 12:36am

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