Development to LP
Title says it all - I am at a developer, but would like to make the switch to a LP on either the acquisition or asset management side. I’’ve got a year of experience working at a debt fund on construction loans and now have been on the GP side for a few years working on acquisitions and development. The seniors at the firm all have close ties to all of the LP shops, so I want to be careful how I tread/approach this. Any recommendations and is it possible?
Of course it’s possible. Just go for it. If you’re concerned about the principals of your firm, just don’t approach LPs you work with.
I feel like we work with all of them though. That’s the problem. All the major players and smaller ones that are good. Leaving behind random ones I’ve never heard of. How do I find those and know that I’m not moving into a shi# show?
You work with every single reputable LP in your market? If that is the case, then you shop is big enough and your role in it relatively unimportant enough that no one is going to care. Besides, if you're leaving either way, won't your colleagues prefer to have you in a position where you can still be helpful to them on the LP side?
The majority of firms won’t out you. They are hiring. They need the talent. Most will understand the nuance of hiring. I wouldn’t be particularly worried.
Right. It's a relatively small/local industry for most. If you're a respected colleague at a reputable firm, shouldn't be an issue.
LPs like operator/developer experience. That kind of move happens all the time, just look at LinkedIn
Is this more on the acq/or AM side? I took a look at LinkedIn and didn’t see that many make this move. Saw a ton the other way around - LP to GP, but not much from Dev to LP.
I moved from a developer to a fund which invests in opportunistic investments. We do both acquisition and AM, the experience has been very helpful across both sides. I was familiar with entitlement, procurement, stabilisation risks etc which was very beneficial while interviewing, and also when on the job compared to those who didn't have this background (staff hired directly from IB for example).
You said you’re doing both acq and dev, and you have debt experience on top of that. Idk how that wouldn’t be relevant info. Underwriting is underwriting, whether you’re at GP or LP. Just try and make the jump — don’t overthink it.
This can be a risky suggestion, but if you have the right relationship with anybody internally (ie a mentor type) it may be beneficial to softly communicate that you are interested in trying out the LP side of the business. If you feel comfortable to do this they may hook you up with a buddy.
This is absolutely only if you have that sort of a tight knit mentor relationship though.
Another thread where people over analyze moving GP to LP and vice versa…
Out of curiosity, why are you looking to make the switch?
Probably wants more money
This is one of the main reasons along with not wanting to be in the weeds.
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