Capital Markets within a REPE/REIT

Currently working on a brokerage team and looking to jump to the principal side. Naturally, most principal firms have the most front office roles within their acquisitions/investments and AM teams but what about capital markets?The bigger firms seem to have their own internal capital markets teams and I'm wondering what the pay for these sorts of roles should be at the analyst, associate, and manager levels. Assuming it's similar to AM pay and slightly below acquisitions?Also, would this be considered deal/transaction based or is it more on the execution side? Seems like there would be a lot of interaction with the lenders and thus closing dinners and what-not (basing this on how we always take clients out to dinner after closing debt financing deals in brokerage).

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Following and also curious on comp. I'm a lender (origination/production role) and my main contacts are often the capital markets people at a Development or REPE firm. Many of them are former bankers/lenders, so I've always been curious about this as an exit op.

Regarding your other question, some thoughts from my lender perspective:

  • I view Capital Markets people as front office deal/transaction people vs. just execution/due diligence. Their job is to build relationships with capital providers (often both debt and equity) in order to get the best terms for their firm, which they negotiate and close. 
  • Yes, lots of interactions with lenders; they are my main points of contact. They reach out to me when they have a new deal, give me the overview, discuss the terms they're looking for. I send all my underwriting and DD questions through them. They're generally very knowledgeable of each deal but will tap their internal partners (acquisitions/development team, accounting, back office, etc.) when needed. For live deals/loan closings, they generally run-point for the Borrower while I run point for the Lender and I chat with them very frequently. 
  • They're technically my client, so I invite them to sporting events, meetings, dinners, etc. When I need to visit a property they'll coordinate and meet me there while a property manager or construction person leads the tour.
  • They're also the 'gatekeepers' for non-credit ancillary business (I'm at a bank). AKA, I work through them to try and win deposits, private placements, treasury services, swaps, etc. Because the larger/institutional firms are often well-banked, a big part of capital markets' job is to manage the business-sharing among their lenders. "I.e. OK bank X, you gave us a lot of debt last year and were easy to work with, here's some deposits." Or "Bank Y, it's your turn to be the Agent bank on our new fund's line of credit." 
 

This is extremely helpful. Really appreciate your knowledge here.

Regarding pay, the only data point I have is that base seems to be almost identical to acquisitions/investments. It’s the bonus that I was curious about when I made this post. Since acquisitions is deal based, I’d assume their bonus could vary substantially compared to the capital markets team who will always be working even when acquisitions fry up.

 

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