Advice: Asset Management to Acquisitions

I’m currently a 2nd year analyst in the asset management group of a REPE firm (AUM > $70Bn). I work on all major property types throughout the country. Responsibilities include quarterly valuations, creating budgets / reforecasts, analyzing lease proposals, participating in dispositions, reviewing monthly financials, assisting with capital project strategy.

I’m looking to join a REPE Acquisitions group as I find transactions more interesting. I’d love to work on core+, value-add, and opportunistic debt / equity investments.

I could wait it out one more year and join our Acquisitions group, but am open to going somewhere that is a bit less focused on “fees” and more on “yield”.

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I'm actually looking to be making the exact opposite jump. On the D/E brokerage side right now and we're seeing a lot of Lenders/prospective Equity partners revising term sheets, getting cold feet, and widening spreads which are making a lot of the deals we're in the market with not pencil. Was recently approached by a top firm that was looking for an AM Associate. I'd rather jump ship and know I can work with their portfolio to help cut costs and drive revenues through new strategies, than worry about all of the deals we're working on fall through. In regards to bonuses, my bosses has told us that if the market collapse lasts for the rest of the year than we should expect reduced bonuses for YE 2020. We also still haven't been paid out for last year's bonus...

That being said, I'd be aware that many CRE brokerage firms are going to be reducing their hiring pools in the near term as future fees shrink and shrink due to a lack of risk appetite. Core properties however for IS/DE will continue to have solid business flow, but still with reduced appetite in the markets.

As Howard Marks said in his latest Memo: "Nobody Knows". We could see a complete collapse in the markets in the next 2-6 months, or we find a corona-cure and markets bounce back. But nobody knows...

 

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