Can someone clear up the confusion on Wells Fargo and Eastdil
I've seen a lot of people posting about Eastdil and Wells Fargo and normally Eastdil is in line for top exit ops. Since Wells Fargo owned Eastdil, are they referring to the same company (Wells Fargo)? Wells Fargo kept Eastdil's real estate investment bankers in the sale. Going forward, will Wells Fargo be considered top in terms of REIB and exit ops? How do the firms differ now?
When people refer to Eastdil Secured they are referring to Eastdil Secured, not Wells Fargo's REIB group. I doubt Wells Fargo will be considere top in terms of REIB.
The firms differ in that Eastdil Secured is a brokerage shop and Wells Fargo is a bank. To really boil it down, Eastdil Secured sells buildings and arranges asset level financing while Wells Fargo lends at the property level, enterprise level, sells bonds, raises equity, and might be involved in some M&A.
Are you sure they are seperate entities now and before? Wells Fargo drove it's real estate M&A through a lot of Eastdil stuff. Now that they retained Eastdil's investment bankers, they officially absorbed the banking side of their business. If you look at the LinkedIn profiles of those at Wells Fargo REGAL now, they were an Eastdil associate, VP, etc. until the sale went through.
I have no insight on this but I do see what your saying. There are/were teams inside Eastdil/HFF that were investment banking arms that did M&A/portfolio level work.
This issue probably matters for select teams in the entire organization, but I think unless you had a very specific team in mind or have way more details you aren't going to get an answer that is more insightful from anyone on this message board. What temujiin said probably true for like 90% of the teams at Eastdil/WF
No because it wasn't the RE-IBD that made Eastdil good for exits. It was the fact that they used to (less so after the loss of Doug and Adam) broker the largest transactions in the country, therefore almost exclusively working with blue chip buyers and sellers. This created a self-fulfilling network of the largest groups in the business. They also work less "team based" than their competitors and more of a IB where they are working for the firm and not themselves so the outside say a more polished looking brokerage firm that looked like an IB than say a CBRE with groups infighting.
EDIT: That is of course if you are looking for equity exit opportunities and not RE-IB related exits.
This used to be the same culture at HFF (Eastdil's average deal size was biggest, then HFF) but that is going to change after merger.
That has not been my experience with HFF on both the debt and IS side in NY/NJ but your mileage may vary. They were just a bit smaller so it felt like less teams but there were still plenty of inter company team issues I've had to ameliorate as a client.
Wells Fargo acquired Eastdil, Eastdil wasn't happy with their comp structure and led a management buyout, Eastdil and Wells Fargo are now two completely separate entities. Eastdil likes to call themselves REIB, and I wouldn't argue with them, but they don't invest any money. Wells Fargo REIB division does invest money. They were never viewed as the same company, they operated separately and if best practices were in place there would have been a firewall between them (see below).
The idea that Eastdil gave deals to WF and vice versa is not true (or at least not substantiated). Did it happen on occasion? Maybe. But having that as a business plan violates the fiduciary responsibilities of both parties.
Real estate investment banking groups do not invest money.
Balance sheet lending
Wells was putting compliance pressure (e.g., AML, KYC, constant employee training) on Eastdil in recent years. Many people at Eastdil weren't used to having to deal with so many rules; it led to some friction. The bank also made it difficult to adopt/experiment with new technology. These things likely influenced the move in addition to some of the things already mentioned above.
This is actually true, good stuff.
Eastdil left wells fargo and the traditional REIB team stayed with wells, excluding the top few bankers who are staying with Eastdil. Those top bankers that stayed have created a new corporate advisory arm which is effectively REIB and is the best in the space.
Lol people talking like they know Eastdil.
Eastdil has a great IS and DE platform that is second to none and has great exit ops for RE gigs.
Eastdil also had a SEPARATE arm of people who actually were investment bankers. In fact Wells Fargo did not have a "REIB" they just had the Eastdil guys. However, this all changed with the recent majority sale of Eastdil. Wells kept all of the true IB guys and rolled them up into a new team called REGAL which is led by Randy Williamson, who is formerly of Eastdil Secured. The Sales and DE members are now operating on their own and still doing well. This didn't come down to comp at the Junior level as Eastdil pays incredibly well, you can trust me on that. A lot of the reason for the Sale was Wells inhibiting Eastdil's growth, especially internationally.
you think there's going to be any change in comp after the buyout? would think they might be able to pay even better without having to worry about Wells looking over their shoulder
Hmm. Interesting point, my guess would be that the people at the top will likely start to see bigger checks and also will hold bigger pieces of equity. In terms of lower levels I doubt it, they already practically out pay the entire street.
Spoke to REIB Associate from wells at an IB Superday. Wells acquired Eastdil and ran the entire real estate investment banking shop out of Eastdil. Following the management buyout mentioned above Wells Fargo assumed the investment banking operation within their new REGAL (Real Estate, Gaming, and Lodging group). They will focus on traditional investment banking for real estate companies (ECM/DCM/M&A). Eastdil contain the brokerage and asset level valuation. There is some sort of partnership in place where asset level work for a Wells Fargo Deal (think REIT Merger). Wells could then roll up into the fund & company level models to transact.
Eastdil - the smallest most closed door shop in the game, yet everyone is an expert....
Eum aut aut repellendus totam sit. Molestiae incidunt odio et itaque saepe quibusdam rem. Et temporibus laudantium voluptas voluptatem minima assumenda. Ut ea commodi velit. Maxime occaecati voluptas nostrum illo quis harum. Fuga autem occaecati autem ratione delectus cupiditate veritatis.
Voluptatem hic repellendus nemo modi. Voluptas adipisci dolorum velit laboriosam. Blanditiis omnis voluptates sit est.
Qui ut officiis dolore non aut. Praesentium qui illum temporibus at animi est. Vel in esse officiis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...