RE Development Associate to PE Firm - How to bring a deal to a PE Firm
I got my foot in the door at a well known real estate development firm in a major metro area by bringing the managing director a deal. It took a lot of legwork on my part to formulate the deal package. The tasks I performed ended up being the responsibilities I undertook for the 4 year duration I was at the firm, "uncovering new opportunities". I'd like to switch asset classes from commercial real estate to private equity investment (Private Equity Firm or Venture Capital Firm), particularly in a business development type role where I would act as the preliminary screen for potential deals. Coming from a real estate financial analysis and project management background, my skillset doesn't have as much carryover as I would like to make the switch. However, to compensate for this shortfall, I'd like to bring a firm a deal like I did previously for the real estate development firm I worked for. My question becomes is this possible? and what steps would need to be taken to formulate a deal package?
If someone in this PE forum is thinking about making the switch to RE Development, below is a rough task list I completed in order to bring my managing director a deal package. I'd greatly appreciate the guidance to help get started in the private equity investment world.
Market & Competitive Analysis: -Local Supply and Demand Analysis -Estimate Rents -Estimate Predevelopment and Building Costs -Perform Preliminary Market Analysis -Evaluate Marketability Options -Determine Highest and Best Use Physical & Design Analysis -Estimate Project Scope -Evaluate Programmatic Options -Obtain Rough Construction Costs Political & Legal Analysis -Evaluate Zoning/Planning -Evaluate Local Politics -Identify External Stakeholders -Identify Permits and Approvals needed Financial Analysis -Back of the Envelope Pro Formas -Evaluate Investment Threshold -Financial Underwriting ‐ 1st Draft -Update Financial Underwriting -Run different Capital Structure Scenarios Project MGMT -Define a Broad Strategy -Identify Land Opportunities -Outbound Calls and Emails to Land Owners -Network with other professionals to inquire about sites -Evaluate Land Control Options -Roughly Estimate Project Timeline -Showcase findings in Presentation Format
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