Asset Mgmt —> Development?
Background: I am a career switcher hoping to get into real estate development. My career is M&A —> PE —> elite MBA —> (now trying to make it into RE development instead of going back to PE). Of course, tough sledding these days in real estate… made worse by a lack of real estate experience on my CV. Nevertheless, I have networked aggressively and developed a few hot job leads:
A. Small, entrepreneurial developers. Right function, flat structure. There are a number of these shops (~5 people) who are willing to give me a shot. These are local guys (so no Related/Hines brand prestige) but their work is interesting (downtown highrise) and I’d get my hands dirty/be working directly with the decision makers.
B. Major developer, “wrong” function, junior role. Basically, the idea here is to get my foot in the door of the industry/firm — even if I start off doing investment/asset management and the role is kind of junior. My big concerns here are several. First, I worry about getting pigeon-holed into asset management both within the firm and more generally. I see this as a learning opportunity/intro to a good brand and would hope to take these skills over to the development side before long. Second, I have some of the typical worries about taking a junior role. It doesn’t look good on the CV. Even if I’m crushing the job, office politics around promotions can be tricky… and I’m going to have to move smoothly as the “wtf is he doing here?” senior junior guy and try not to outshine the master.
C. Major developer, right function, junior role. For the right place + actually doing development, I’d say fuck it and just go for it. If I am in the correct function, I am confident that I can either climb the hierarchy or use the brand to split off and do my own thing when the time is right.
Questions for the audience:
Q1: Is asset management a good stepping stone to RE development?
Q2: In my shoes, how would you rank opportunities A, B and C?
Q3: Given people care about titles, is taking an analyst/senior analyst/associate role a terrible idea?
Q4: Any other advice for me?
If option C is at a major developer doing what you want to do, that seems like the obvious option here? I'm not sure why B would even be in consideration at that point? A you could do as an alternative to get exposure to full cycle development which is helpful if you want to do your own thing, but you can also always go do that later. The name brand is helpful early in your career.
EDIT: For other readers' benefit I want to make it abundantly clear that Asset Management is never going to pigeon hole you in this industry assuming it is at a shop where the team takes an active role and isn't effectively an accounting function (this only really happens at some funds that only serve as LP money). It is a front office role, same as acquisitions or development, and gives you way more property-level knowledge than acquisitions ever will.
Thanks for this. CREnadian -- If cool with you, I would love to PM you and pick your brain a bit about asset management.
Regarding my situation, I could have explained it better. I am not staring at written offers for each of A/B/C. Rather, the conversations are moving such that I need to work out my priorities now in order to manage expectations.
Option A (several small development shops): I have verbal offers to simply start working as a contractor (and see where it goes long-term). I am expecting something in writing shortly
Option B (major development firm, asset management/dispositions): After a long interview process, they are bluntly signaling there's an offer coming.
Option C (major development firm, development): This is promising, but still in the early innings. I will have to figure out responses to A/B before I know if C works out.
Sure PM away
I wish there could be more open dialogue between us asset managers/more interest regarding AM on the forum, as I think there's a wealth of useful knowledge to be shared.
It's pretty mind boggling to me that more people don't look at AM as a viable job option in the industry. Hell, a lot of VERY reputable shops have their investment guys doing both acquisitions and AM (because logically if you understand your portfolio and markets you understand your investment thesis and underwriting far better).
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