2 Internship offers - Large Player vs Niche
Hello everyone. In a fortunate position that has left me a little confused.
I will be graduating this year so I need to get this decision right or I may screw myself real hard. Additionally, for me, future earning potential is the #1 priority over working on interesting deals or getting a variety of experiences.
- If you had the option to intern somewhere like Barings vs Healthcare REIT, which would you choose?
At Barings, I feel like I can get screwed by being placed or forced into the AM or Research teams due to my background vs Fund Management or Acquisition teams.
I am worried about the REIT as their focus is quite specific and I don't know if it would be easy to move into a generalist role/firm.
My CRE network isn't big sadly hence my posting here.
- I know the REIT pays more, but I just don't know how much more they pay in the future (i.e. I only have intern salary knowledge). So for example, would staying at Barings to be a Fund/Portfolio Manager net you more pay in 10 years vs staying at the REIT and then moving to Starwood in a 10-year time span?
I know I am skipping past what the different roles entail and what personalities they suit but for now, I just want to focus on $$$ and maybe some WLB (e.g. PM/FM role at Lifeco like Barings or VP/Director at Starwood).
Cheers.
Place more weight on whether you're a fit for the type of role - it will determine your future earnings more than the actual potential earnings of a given function. If you can't source deals, you're not going to make much money in acquisitions. Likewise if you're not highly analytical and focused on the details you're not going to get as far in AM.
To your question - it's an internship, the choice you make here is not going to have a lasting impact on your career. Working in any function at a recognizable name is all people care about for junior hires. You're unlikely to get any real significant responsibility so it's just the general RE knowledge you're aiming to pick up. Same goes for niche vs. broad - it's an internship, you're not going to become specialized enough or even learn enough for it to matter.
That being said, take the one you think you're more likely to get into a role you want to pursue after grad (i.e. acquisitions vs. AM).
Thank you very much! Liked your points regarding skills required to be successful or, anything that is a good fit as I don't think I can be a rainmaker sourcer.
Appreciate it - I've made my decision.
Don't factor Starwood into your decision tree because the chances you end up there are rare. Not a knock on you but just a reality of how many seats they have.
True, I do appreciate it but want to have something to look forward to! I have heard their culture is pretty toxic (compared to BX).
I mean if you're joining any of these firms it's not because they're lifestyle firms. (Beyond getting paid more to afford a lifestyle you don't have time for)
My gut tells me to just become a nomad and screw this world but I have a feeling that it may be unwise.
Congrats on the offers!! To the above quoted part... that is an interesting set of statements to put in the opening of a post! First I have to react...
1. I see no way in which the decision you set forth below could possibly lead you to "screw myself real hard"... these are INTERNSHIPS... and even if first jobs... either would be fine/great. If this is really causing you this much stress, get some help, I'm not kidding, you will be a lot happier if you can see the long game here (and probably make better decisions!).
2. If you value future earnings potential... why are you messing with the buyside now? Go hard core into sellside roles like I-banking or IS/DE brokerage.. I'm not hating on you having a mercenary attitude, in fact, I'll give you props for straight up admitting it! But, the big ups are in the sellside (at least faster for sure), they also set you up for the transactional buyside roles that lead to the big paydays. Being serious... you will probably be happier in a sellside role this part of your career!
Beyond that... as to Barings vs. Welltower.... I'd guess I'd say Barings is the broader player. Where you get placed as an INTERN.... will not matter much in full-time recruiting.. (like seriously... this isn't full time, you can still apply to whatever..). Welltower is fine also, go with overall best impression/gut.
As to long-term pay in buyside world..... really depends on your ability to promoted, trusted in the organization, be seen as leader, able to speak to investors, negotiate/manage deals etc. You won't just get promoted with time at an investment manager or REIT either way, you gotta work for it/earn it. So really irrelevant and impossible to estimate earnings at year 10 (to note, interning at a REIT won't dim your chances of working for an investment manager or vice versa....).
So, my advice, chill out, relax, pick the internship you like the most, and just have some fun and try and learn and absorb how this crazy industry actually works!
Thank you Redever, your posts are always really insightful!
Yeah I do probably need help haha, my friends do say I am too on edge all of the time.
I do have an in at one of the larger brokerages (from previous internship, they offered me to come back FT), in their capital markets team so I think that will probably be the best call for now, depending on how the summer internship goes for me.
Yeah I do realise, things don't always go to plan and it's hard to tell how everything may playout - but I just wanted to increase my likelihood. I would probably be in physics academia or doing graphic design FT if I wasn't from a bad background (I don't talk about this in interviews and not looking for sympathy as I am sure people have it worse than me but just stating my motivation).
So, I don't know any of your friends, but I get it lol! Will make a quick reaction to your "bad background" comment.... Sounds like you are really trying to overcome and overachieve (this is super common, and frankly quasi-part of my own story, but I'm not attempting to compare or anything)... realize this..... even thought it totally doesn't feel like it (I get that for sure!)... you have actually already won, you already overcame, you can relax (tbh... I know this is super easier said than done, its also likely true!)
Why are you so concerned with being placed in a department FT you won’t like? Worry about the actual internship first. I’m sure a firm like Welltower has back office departments as well.
And if your FT offer from say Barings, was a Research role, who cares? No one is forcing you to take it. You’ll still have the internship experience on your resume. I would personally go with Barings. You’ll being exposed to more asset classes and likely get some exposure to Argus. Even if you’re not being tasked with modeling in it, you’ll likely still get access to and can play and learn with it on your own time for free.
Appreciate your reply, Argus does seem to be crucial. I might sound aggressive but not my intention.
I just really hate how elitist some firms are but to get those (well paid) roles, I need to go to them. Also, being on the application/internship/FT role grind is tiring because in the UK, for grad roles (and internships), networking is not as big of a factor as it is in the US so either you get into the process or you don't (at larger firms) so I want to get it right.
For example, if I went with Barings and was put into Research or Strategy, it would be really hard to move away into Acquisitions where my best bet would probably be to pray for internal mobility. As I am still a student, I want to utilise the last chance to get more "Front Office" experience without then being locked into an area when you are FT.
Spoken to some people who were in research previously and was just told to avoid if I ever had any thoughts about going into acquisitions or similar roles. I know at places, in their Research roles, they don't touch Argus.
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