Anyone here work with/in credit tenant leases? I am interested to learn more. How does a junior get into this space? Do you start in a structured finance group at a bank and then go to a lender? Are there ‘principals’ in this space or just lenders? It seems there can be a cross over in financing between infrastructure and real estate? Am I thinking about that correctly? Any info is welcome.
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Based on the most helpful WSO content, getting into the credit tenant lease (CTL) space can be a strategic move. It's a niche area of real estate finance where the creditworthiness of the tenant is a major factor in the financing arrangement.
To get into this space as a junior, you might want to consider starting in a structured finance group at a bank. This will give you a solid foundation in understanding complex financial products and how they are structured. After gaining some experience, you could then transition to a lender that specializes in CTLs.
As for the 'principals' in this space, it's not just lenders. There are also investors who take on the role of principals in these transactions. They invest in the properties and lease them out to tenants, hence taking on both the rewards and risks associated with property ownership.
You're correct in thinking that there can be a crossover between infrastructure and real estate financing. Both involve large-scale, capital-intensive projects that require complex financing arrangements. However, the specifics can vary greatly depending on the nature of the project and the parties involved.
Remember, the more property types you get your hands on, the better off you'll be. And don't forget to seize opportunities to underwrite tax credits if they come your way. They're becoming extremely popular and can set you apart in the industry.
Keep in mind that this is a challenging field that requires a strong understanding of both real estate and finance. But with the right mindset and dedication, you can certainly make a name for yourself in the CTL space. Keep swinging from those branches, and you'll reach the top in no time!
Sources: CRE Credit Analyst Career Path, LevFin to Infrastructure: The Need to Build, Mezzanine Finance: What exactly do you do here?, Restructuring --> Direct Lending / Private Credit
Bump
Look into Eastdil's Net Lease group.
You could also reach out to Mesirow who specializes in this and talk to some of their pros to learn more and inquire about a job.
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