Debt Brokerage vs Lending
What’s the difference between working as an analyst on a D/E team at jll, cbre etc.. vs originations at a bank or lifeco? Is one better than the other? How does pay, hours and exit ops differ?
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Would you be the actual originator? Or just analyst level at the lender?
I'd say probably fairly similar at the analyst level but the difference will be as you move up in seniority and become more client facing. At a brokerage you will be trying to win the business of sponsors but at a bank/lifeco you will be trying to win the business of brokers. I'm at a boutique mm debt brokerage so other people may be able to provide more color.
I'd think deal flow would potentially be a big difference. It depends on what types of deals the broker or lender does. Deal flow is important since it gives you experience by seeing different types of transactions and repetition.
I'd think the broker would see a ton of deals, working with the borrower to get the most out of their asset. Maybe really digging into the weeds of raw data and present a story, but I'm not a broker so I wouldn't know. You would also see the different proposals from the lenders, giving you great exposure.
On the lender side, it really depends what kind of lender it is and where the capital is coming from. You could potentially see the investor side, where the capital is sourced and what their requirements are. You'd mostly interface with brokers and some times borrowers, but really depends. Different lenders will see different deals, as brokers will show certain types of deals to lender they think would be interested and bid on (this depends on investor requirements). Hopefully the broker has presented the data clearly, but if not you have to do a lot of digging in the weeds.
Aside from this, you would have to ask people in each function what their comp is and hours. Which would depend on firms and teams.
I've done both.
As a originator at Bank - 40-45 hours per week. Alot of adminstrative tasks like annual reviews while the expectation was to grow the book modestly. My target was at about $50MM loan growth year 1. Comp is okay at about $120K all-in as a first year relationship manager. Probably could expect $150K as a senior RM and $200K as a director (but it is hard to get to the RM level).
As a broker 50-60 hours. Focus is on new money/re-financing. Alot of sizing up loans, building relationships at COI's...etc. Comp is definitely much better at brokerage junior originators range from $150K - $400K all-in senior originators range from $400K - $3MM.
Hope this helps.
What size bank were you at? I find it interesting senior RMs only do 150k. At my bank they do about $175k base and 150k - 215 bonus. With Directors doing minimum of 450k.
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