Acquisitions at a tech platform
Just wondering if anyone has insight into acquisitions at tech platforms like Cadre, Fundrise, Yieldstreet, etc.
What is the comp and acquisition process like? I assume it is even more detailed because, while you are LP, you essentially have to sell the deal back to your investors.
Would love any insight from anyone that has experience.
Thanks,
Bump
No Idea but not sure why it would be more detailed since you are selling to retail investors. Would think it's much more high level / marketing-esque than detailed financial analysis....
From what i understand the way few, maybe not all of these firm's work is they initially invest via their own warehouse lines, and then sell the shares to retail investors
I interviewed at one of those crowdfunding platforms for a real estate analyst role, but inquired about the acquisitions role since it seemed more my speed. Most of these platforms are in the early stages of their GP business line, so the deals are much smaller compared to most of what is listed on their platform. The platform I spoke to was targeting $20M value-add multifamily deals for their GP business, with the goal of eventually investing in mostly institutional quality assets. The organization had an investment committee that looked at every acquisition, and a due diligence team as well.
They try to hire people from the CRE industry with 2-5 years experience for lower level acquisitions roles. The real estate analyst position I interviewed for was $65k+ bonus. An acquisitions associate, which they wanted 3-4 years CRE multifamily acquisitions experience, was around the $100k+ bonus mark. I ended up not going for analyst role because it was less than what I was currently making, and didn't have the years of experience they wanted for acquisitions associate.
One thing I questioned is why would retail investors trust the deals the platform is the GP over deals other developers listed on the platform. They claim to investors there's a strict underwriting protocol for deals listed on the platform, does that same level of scrutiny apply to their own deals? It's tough to find a good value add multifamily deal using conservative assumptions these days. I think the lure for investors not very sophisticated in CRE was that the platform would evaluate institutional deals for them, serve as a mediator. This relationship gets murky once the platform starts listing their own deals.
This is very helpful. Thank you.
Just a note on one data point. An associate position that reached out to me is 130 - 140 base. Bonus will most likely be lower than similar PE funds though.
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