On my team (SBL Lending), our originators arrange financing for their clients, and thus put together a loan application after sizing a deal. Then, an analyst (me) will underwrite said deal. Easy enough.
However, I am a bit confused about how the process differs at a REPE shop, or somewhere like Prudential, or even somewhere like HFF's debt placement team. For REPE, do originators just spend their days sourcing opportunities with private investors and then pass along the underwriting to analysts as well?
Can someone explain the difference between the role of a producer in HFF debt placement vs. someone who focuses on origination for Prudential?
TL:DR- I'm confused about how the following three roles differ: HFF debt placement producer, someone who focuses on debt/origination at a PERE shop, someone who focuses on origination at PGIM Real Estate.
Thanks in advance for your help.
Trying to synthesize your question.
REPE - depends on what their role is in the deal (Mezz debt, Mezz equity, Senior Equity, JV equity, Operator?).
Lender - they will use various lending constraints to see what max proceeds they can offer (LTV, DSCR, etc.) based off of conservative underwriting.
Broker (HFF) - they will make the deal look as sweet as possible since their job is to get it closed and take home their commission. Take broker underwriting with a heavy grain of salt.
^
Appreciate the breakdown. So I guess I'm specifically curious about the different roles within REPE: how would the role differ at a PE firm if on one deal they act as the operator and on another they invest in mezz debt?
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