Do you know of companies that have an internal capital markets team that essentially act as the in-house D/E broker?
Any insight on how a role like that compares to being a D/E broker or lender at a balance sheet/CMBS/lifeco/agency lender?
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No insight into what that role compares too, but most large fund mangers and many developers have an in-house team. Greystar, Heitman, Alliance, TCR, and may others jump to mind. I'd imagine that the upside is a little more limited, but the roles all seem pretty cushy given how sticky some of those relationships are once you've done a few deals together.
DWS Group, a fund manager with 704bn AUM has a in house capital markets group. I would imagine a lot of large fund managers do as well. I have seen OM's from Sandra Fung and Kristin Strange and for me there was no difference between getting a OM from them or from a debt broker. So, while the pay structure might be different, the responsibilities might be the same.
A lot of development shops need a capital markets team that focuses solely on finding the most accretive financing for their project, while development associates focus on the project budgeting and operational pro forma aspect. Large funds also generally have capital markets teams that negotiate fund-level credit facilities with lenders.
As for comparison to D/E brokerage - it's less about pounding pavement, hammering out BOVs and placement memorandums and a lot more targeted towards negotiating the most accretive terms with large, existing relationships. For example, if we start fundraising for Value-Add Fund II after Value-Add Fund I is successfully deployed, our capital markets team will probably try to renegotiate a similar/more favorable credit facility with the same group that financed Value-Add Fund I. They're not going to send a million IMs to every debt fund with a few B's under management to get the job done.
This isn't necessarily true a lot of funds have in-house capital markets teams that focus on originating long term mortgages which in a lot of cases are more attractive than short term credit facilities. I'd wager far more fund deals are financed with mortgages than credit facilities which involve a lot more more analyst work such as building OMs, loan sizings and underwriting, and coordination of marketing and closing processes.
Would think it depends on how high leverage you want to go.
JBG has an in-house capital markets team. Lerner and Peterson do as well. Being an in house team is super cushy compared to being a broker. You don't have to hustle to drum up business as you have a guaranteed pipeline of deals from an existing portfolio with known loan maturities. Having said that I don't think in-house brokers get paid as well as a super star broker from one of the big shops.
The pay isn't close. Internal capital markets track is similar to corporate finance in pay. However, it provides an awesome work/life balance.
Does anybody know what comp is like in that sort of group?
What level?
From what I've seen it seems like there aren't really "Analyst" level roles there (if anybody knows otherwise let me know).
So, Associate-MD level.
Starwood does, have a buddy who works there. At the top they leverage connections with Freddie/Fannie, various BB lenders, etc. Underwrite debt for deals within certain funds/groups. Don't know much more than that other than that. And temujiin there are analyst roles there, very cushy job
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