REPE funds like/value construction / development experience?
From my understanding REPE funds with opportunistic funds invest in distressed assets, as well as developments/land. I was curious to know if construction / development experience is valued at REPE funds?
If so, do individuals in this profile usually already have the solid traditional RE finance background , and the construciton/development experience was just merely icing on the cake, but nothing particularly sought after, rather something that just brought a new perspective to the table?
Yes, I have heard about this as a possible path, but I don't see it often. Maybe others have seen this happen. An interesting job would be to work for a large owner as their head of construction; lots of big owners and developers have those positions. Seems like it'd be better than working for a contractor.
Like prospie said, I haven't seen this often either (thought it's happened). The instances I've seen were of people who spent some years in real estate development and ended up going back to school at a top b-school, and networked to get a REPE job. Even in development, you need a good handle on modeling those deals. It might not be your good ol' high finance modeling, but there's still value there.
Depends on the REPE funds strategy. Funds incorporating significant construction into their strategy (like opportunistic development) would typically covet that type of exp.
In general, RE finance exp is more valuable in the RE investing business.
it's very common in china, but I can't speak for the U.S. ---- in China at least half of the directors and MDs at most REPE funds started out as developers
Just saw this IP. I am not surprised, but 'at least half' seems a little bit high, unless you are talking about those 'local' REPE funds.
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