Deciding between Associate offers...

Hey y'all, I'm having trouble deciding between two associate offers (neither is ideal) and would be grateful for any input! Details on my background, career goals, and each position are below:

Background:

  • 3 YOE as an analyst in a top D/E placement group; MBA internship on deal team at a blue-chip REIT
  • T15 MBA grad

Goals:

  • 5 years - build a well-rounded generalist background across multiple property types and markets, ideally at a well-recognized PE/PC shop to help with raising money in the future
  • 10 years - start doing value-add deals on my own and/or with a partner (would never become a developer personally) 

Offer 1:

  • Role: Acquisitions and capital markets for an owner-operator in LA/SF (~6MM SF built as a developer, $200M AUM)

Pros:

  • Breadth of responsibility - Covering everything from sourcing, underwriting, negotiating, and closing
  • Investment strategy - all heavy value-add and ground-up development, so guessing the skillset would be very useful for future
  • Direct supervisor - potential boss seems like a great mentor and teacher
  • Long-term career growth - unclear about comp trajectory, but there is a potential path to fund carry and profit split in 5 years
  • Culture - going to list this as a pro for now because I think there's some really sharp, driven people on the team. That said, they were also incredibly inflexible and somewhat sarcastic when negotiating a few offer terms outside of comp

Cons:

  • Compensation - package is somewhat underwhelming at $140K ($10K signing bonus, $130K salary, <=20% YE bonus)
  • Network/Location - would require moving away from significant other, and MBA friends in next few weeks to live in a city that I know isn't a fit 
  • No name brand - have had difficulty getting traction with MF PE groups because of not having a well-recognized buyside firm on my resume
  • Team size - could also be a pro, but there's no analyst so will be stuck doing lease abstracting and other mundane work

Offer 2:

Role: Originations for a private credit fund in NYC (>$6B AUM)

Pros:

  • Name brand - company  is a household name
  • Network/Location - way more friends, industry contacts, etc. in NYC than the other city in question; also significantly further from home
  • Investment strategy - primarily mezz debt, with some corporate lending, workout advisory and pref equity mixed in, all of which are interesting

Cons:

  • Compensation - package is really light at $115K and <=50% YE bonus; may have room to negotiate upward though
  • Product Type Coverage - niche asset class (think hotel, seniors housing, etc.), plus a tiny bit of multifamily); definitely worried about getting pigeonholed if I wanted to move to a bigger shop in 1-2 years
  • Culture - there's some pretty horrific reviews of this company's culture on WSO… but I've really enjoyed my conversations with the team
  • Deal Cycle Exposure - would only be covering deal process until term sheet stage (originations and underwriting are silo'd)

Considering the market, is it insane that I'm also considering passing on both these opportunities to find something in the city I currently live in, even it if means working in AM, or portfolio management? Been on the networking/interview prep grind HEAVY since September and have also had some shitty luck, but finally starting to see results. The reason I ask is because being close to family, the girlfriend, my buddies and b-school network are important factors. Trouble is that I'm an international, and need to start earning income by Oct/Nov to be able to afford rent.

 
Most Helpful

Would it be an option to say neither? How desperate are you to move.

Option 1 sounds almost ideal but the biggest deal killer here is moving away from your partner and friends. Once you're no longer a eager finance hardo that's still in school/first year analyst you begin to realise that there's more to life than work and you value the things that option 1 requires you to move away from. If you don't like the city, aren't close to your partner or friends, I don't care how good the job is on paper I (maybe you) would hate life sooner or later.

Option 2, similar to the theme above, is a deal killer if the culture sucks the life out of you. Not only that, it's a credit fund so its a very different skill set.

If you can I'd hold out.

Edit: I see that you also considered skipping both. So yea, I'd skip both. Admittedly it's easier on the outside looking in as I've been in your shoes before and made the wrong move when I really should have stayed put. An outsiders perspective is always good even if it might not seem the most obvious. 

 

Thanks for the thought comment! Agreed, would honestly be way more inclined to take option 1 even with 1-2 friends in the city. Would be <2 hour flight to the place I'm currently living, but it's in office 5 days a week lol.

The only reason I'm hesitant to pass on these opportunities is because I have a finite amount of time from an immigration and financial standpoint. Unfortunately, I'm not from the US, so living at rent-free at home isn't an option as the economy improves. But when will it improve, and what will job prospects look like? There's $1.5 trillion of debt maturing before 2025... it seems like the pain is just starting.      

 

Thanks for the thought comment! Agreed, would honestly be way more inclined to take option 1 even with 1-2 friends in the city. Would be <2 hour flight to the place I'm currently living, but it's in office.... 5 days a week lol.

The only reason I'm hesitant to pass on these opportunities is because I have a finite amount of time from an immigration and financial standpoint. Unfortunately, I'm not from the US, so living at rent-free at home isn't an option as the economy improves. But when will it improve, and what will job prospects look like? There's $1.5 trillion of debt maturing before 2025... it seems like the pain is just starting.      

In that case I'd be inclined to take Option 2, with the view of moving into an equity position in your city. I just don't think moving away from the things that keep you grounded in life (GF - depending how long the relationship is and friends) is a good idea.

That being said, I'm not from the states so my perception of distance is different to yours. Perhaps a <2 hour flight is normal for folks in the states but each to their own. 

 

The job market is sooo down bad. Take either of them and lateral when the job market inevitably comes back.
 

These mediocre offers aren’t at all reflective of your quality as a candidate - there just aren’t good jobs available right now.

The only thing worse than either of these jobs is not having a job at all. 

 

No, solid name brand, and good option for switching into development/acq. Just something to do in lieu of not having an offer

 

OPT isn't an issue. Figured out a way to work for a friend's RE startup if I don't have a job when my EAD card comes through. This would prevent me from eating into any unemployment days.

Another option I'm considering is continuing to search for other roles and do some consulting work to keep the lights on. Already had a couple groups reach out earlier in the year, so it's a definite possibility, and could help extend my stay in the US for awhile longer.   

 

I started my real estate career at a small shop (~100M AUM) and later saw the AUM grows to over $1B in just 3 years and helped them set up a $250M JV on top towards the tail end. Joined the right group at the right time which literally set a tone for my career path. Never regretted it and would never trade the experience for a mega fund. For me, option 1 is a no-brainer (so long as these guys are active.) You need to ask them, how many deals have you done in the last 24 months. Last 12 months? Currently UC? Immediate pipeline? If they're doing at least 6 deals a year, I would advise you to take it.

 

That's fair, I joined the same in terms of AUM and they were complete scumbags that underpaid and didn't grow - they were also over levered and almost lost a major asset right before I joined. Depends on the shop and pedigree/background of guys running it. They also ended up screwing over long time employees, three that were in the 5 to 10 year range when they asked for a larger portion of share/ability to invest in future deals and just let go 4 out of 10 people all due to ego. Be careful where you end up, get transparency if you can

 

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