Asset Management at Lender?
Hey guys. Recent grad here. Currently interviewing with an asset management team at a lender. What are your guys thoughts on this position especially now? I originally wanted to do acquisitions or asset management, but not sure if that’s an option.
Honestly I think it is the most horrible position you could get.. I am really sorry because I don’t want to discourage you, but it is such a brain dead job - the origination team will execute the debt deals and will pass them to you to do the portfolio management. Limited interaction with the client, limited excel modelling, limited understanding of the docs. At the same time the pay is decent and the hours are good.
If you can’t find anything else, I would still suggest you take the position and continue interviewing with other companies.
Would agree unless this is an am role at a lender/special servicer focused on cmbs loans on the watchlist or going into special. You’ll get a ton of experience in this environment. At the end of the day no matter what the role a job is a job in this market, and even more so getting your foot in the door as a new grad
Do you think exit opportunities are extremely limited? Luckily I have supportive parents so I’m not in a rush. Just worried about passing up on an opportunity and then there being absolutely nothing in December.
I completely disagree with the takes above. It can be a very good first job. Real estate is all about debt. You will learn your way around legal documentation of a property - loan docs, PSA, appraisals, ESA, leases, etc. This is infinitely more important than modeling. You can take this role for 1-2 years, let the market turn around (as it’s a shit show right now) and then move over to a different role. 22-30 years old (even later) you can make whatever switch you want. You just need to network.
Pipe down you jiggly bowl of disappointment more akin to a failed science experiment
Went from acquisitions to asset management. Got promoted to Special Assets. I've probably learned more in one year in Asset Management than in 10 years in acquisitions.
This isn't equity asset management which would be a role I would take without hesitation. What would you think about a resume that came across your desk with someone with AM experience on the lender side?
Debt asset management would be fine by me if it came across my desk. I spend 25% of my day in legal docs. An acquisition analyst spends all day in excel. There’s a reason an MD days legal docs and business development over excel…one is inherently more important than the other. A monkey can figure out the untrended yield on cost to tell me if a deal is good (from a financial perspective). The same can’t be done for practical business sense and legal docs.
If the job pays well and is a good/reputable company, you should absolutely pursue it. Asset Management is a crucial part of any CRE firm/fund/lender/etc. Top guys can make millions of dollars, and if you don't like the stress and constant dialogue AM comes with, and want to do originations or acquisitions (when that gets busy), it will be easy to jump. The experience is beneficial anywhere you go.
What kind of firm/portfolio is this? Bank, Life Co, private credit fund?
Your experience is going to vary greatly depending on the type of firm and team.
I'm the Head of Debt AM at a fund, but was an AM at life companies previously. The jobs are wildly different.
Sorry didn’t realize. This is at a Lifeco. Appreciate any honest insight you can give.
Internal to the Life Co or at a servicer working on a life co portfolio?
If you would prefer to send me a PM, feel free.
As noted above, it depends entirely on the shop and the specific job duties that are displayed. Debt AM at some shops can include a lot of portfolio management and strategy whereas some, it’s basically more administrative and back office with ensuring borrowers are paying their debt service on time and hitting their required covenants. Typically, “Loan” AM will be characterized for the latter that you may want to stay clear.
I work in debt loan originations for a lifeco and work closely with our AM team. Our analysts day to day consist of processing borrower requests, reviewing loan docs, approving leases and creating status reports. The revalue and tour every loan in our portfolio once a year (roughly 200ish total loans) so they get decent underwriting reps. While I agree with other posters that its not the most interesting position, it’s definitely a solid role for someone coming out of college, especially in this market. Going to be tough to jump directly to an acquisitions/dev role but I’ve seen several of our analysts make the jump to equity AM.
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