Asset management Associates - what does your day to day look like?
Currently pursuing an MBA and looking to get into RE after graduating. From what I’ve been reading I think I’d enjoy and do well on the AM side of things, but wondering what the day to day actually looks like for you all. Would appreciate any insight. Thanks!
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Asset management associates will assist in many varied tasks. Lease negotiation (office/retail/industrial), calls with property management, calls with leasing brokers, budgeting, valuation, hold/sell analysis. Dealing with ad-hoc issues at your assets - for example a roof collapses and you need to deal with insurance to get paid back, etc. You’ll also be working through the annual and full cycle business plan to make sure you hit your targets. If you are missing your targets, you’ll work on strategy to get back to budget and keep the business plan moving forward if the deal isn’t working, you’ll work through strategy to get it back on track
At some firms, asset management is more akin to an accounting function while at others its front office.
Thanks!
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Probably most noticeable in the salary, and how many accounting questions they ask in the interview versus RE questions.
If they don't quiz you on promote/waterfalls or anything deal related, you might be an AM at a firm that is more accounting.
There are a few paths as an AM, on that wasn't mentioned may be more focused on investor relations as well which is managing which reports go to investors to keeping everyone happy
Dont do debt AM. You deal with bullshit and it doesnt have a good career path IMO
Can you expand on this?
AM can be a great career path if you want a steady or secure job. It is very different than equity AM because you aren’t really hands on with managing the real asset. You do back office work to make sure the asset can meet its debt liabilities but not much else. In real estate, and every other business line, you make the most money when you are bringing in business. This is why originators and originations analysts make so much more money.
Just ask what your day to day would be like. The majority of places it is front office but occasionally it is just a reporting job.
Debt AM really depends on where you work, what kind of portfolio you work on, and what you want from your career.
If you are dead set on being some sort of front office investments person, then you will have to find the specific places where they treat debt AM that way (mostly debt funds and even then not always the case).
If you are okay with a solid job, with potential to move up a career path/company ladder into a senior spot, then being young and ambitious in a Debt AM/Servicing role is a plus.
Equity AM here:
What I love most about AM, is that everyday is completely different and there’s so much you can be working on that add value. Below main items:
- Business Plans (executing, tracking, creation)
- Communicating with GP/Operator (I am on the LP side)
- Operations/ CapEx Projects
- Leases
- Valuations
- Hold/Sell Analysis
- Assisting Acquisitions teams in UW
- Dispositions
- Refinances/Debt Strategy (two assets I work on have very complex cap stacks)
- Monthly/Quarterly Reporting to PMs
- Reforecasts, Underwriting current assets, Ad Hoc Reporting
- Reviewing agreements (JV, Operating, Loan)
- Dealing with Legal
- Refinances/Debt Strategy (two assets I work on have very complex cap stacks)
Can you dive deeper into your refinance and debt strategy? What metrics go into this and what data are you looking at? How do you come to the decision to refinance an asset and for what reasons? What changed with the asset that you are now considering refinancing? new lease? expiring loan? when you sell versus refinance?
Thanks!
This is really helpful. Appreciate going into detail.
As a note, "asset management", when doing such a firm that directly owns real estate (not just invested via JV-LP structures), it is essentially the core business of real estate... operating investment properties for max return/value. That is a very hard core "front office" real estate job.
When you do AM for structured equity or debt assets (i.e. indirect to real estate), it will be less "hands on" per se by the nature of the asset. Thus there is a greater risk that the job "feels" (may not actually be) "back office" as there more of a go between effect (and thus shared decision making authority). So... it matters what "assets" you are actually managing (I mean, shouldn't this be just obvious!!)
Just realize, "AM" jobs/functions in the debt world, equity co-invest world, and everything can be VERY high paid and very good careers. WSO seems to downgrade AM world for some reason, but I feel like a lot of people don't really understand it (if they did, they would go after these jobs much more intensely).
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So, as I have never had that type of job, nor worked for a LifeCo, not sure I am best to opine...
Will note... "worthwhile experience" is very subjective... I think TONS people would absolutely want/love that job, and I'm sure it can pay very well. Will many have so called "higher aspirations" sure... but if one really things taking that jobs is some sort of failure because they aren't an acq analyst at BX... I don't know what to say!
I'll give you my opinion what I presume that role must do... Coordinate often with the developers/sponsors on the deals they invest, and prepare reporting for the fund they AM for. With a 90/10, they will very heavily involved in the approval process for all leases, development plans/budgets, contracts with GC/PM/etc., and will probably be running or part of running the disposition/recap process once deal is complete/stabilized. I'd suspect a lower asset to manager ratio as development deals have a lot of work (especially if a construction loan is used and lender coordination/approval is needed). Probably will need to visit the market/site for meetings/tours/inspections somewhat regularly (a few times a year I'd guess).
If things go "sideways" this role as a lot more work to do as well... part of the world of "AM" much more to do when trouble at hand and decisions need to be made, when all going to plan, just doing reporting may be like 90% of the job.
I’m an AM Associate for an owner operator REPE firm. We raise funds and invest without taking LP capital. My day to day has been supporting all refi and disposition activity in our portfolio, as well as having direct P&L responsibilities for a number of deals in the firm’s portfolio. I’m basically a hybrid senior analyst / asset manager.
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