Career advice: Ideal role for becoming a GP
Hi guys,
I am seeking some career advice from some more experienced folks on here. I'm currently working for a fairly reputable PE firm doing AM - Angelo Gordon/Cerberus/och ziff size/level firm. I enjoy the work we do - although we're usually the capital partner in deals, we are largely pretty hands-on and drive the process albeit thru a local operating partner. however, I doubt any of the MDs in my group are pulling in 8 figures a year - maybe $1-2 mil max. this is sort of in line with what I've read on here thru the years, namely that you can only create true wealth as 1. a shareholder 2. a GP operator - unless you're the guy that sourced Hilton/EOP and drove the process for those deals at BX. although I grew up poor, I do have friends whose parents have mentioned to me off the cuff that if I wanted to start my own firm down the line, they'll throw me a few million to put to work for them. as a GP w a few million and partnering with a capital provider + levering up the cap stack, purchasing power could be quite large
So I've been thinking: what's the best role for becoming a GP or starting a development firm down the line? I understand that developers are effectively jack of all trades type guys - you know a bit about everything and how to manage a process rather than just doing one of underwriting/entitlements/construction/etc. all day long. but from what I've seen at the large dev firms (say Hines or related) it seems like everyone is relegated to a silo and encouraged to specialize for their careers.
The flipside is working for a small mom and pop developer that will allow you to dabble in all areas - but then that carries significant downside in exit opps, no partners respecting your credentials, the firm going under, focusing on SFHs rather than commercial assets, etc.
Therefore I'm confused as to how to find the right balance - would it be to put in time at an extell/silverstein-sized developer? where it's not thousands of employees yet they still have dealflow/track record/brand that would assist in raising capital and more hands-on than PE
Sorry if this post is all over the place. any help would be greatly appreciated!
Becoming a GP (Originally Posted: 12/10/2016)
Monkeys,
Curious of your thoughts on this. How many years of REPE experience do you believe it takes to build the knowledge/skill set to start doing your own deals? I am referring strictly to the ability to properly u/w, model, finance, close/oversee 3rd parties. For the sake of this post, please put aside all of the thoughts on capital raising and deal sourcing and focus strictly on the capability to run all other aspects of the deal.
Just to clarify - I'm not talking about doing your own SFR flips. I'm referring to acquiring (and at some point developing) 100+ units MF assets, 100+ key hotels,100k+ sf office buildings, etc.
jesus chrsit when did "REPE" become synonymous with "real estate"?