Exit opps from Debt fund?
Does anyone have an idea of the potential exit opportunities from working for an alternative asset manager/debt fund? Can you move into PE? Are you stuck on Debt side. Is development an option? Whats the desirable path from this point? I ve only been in the industry for less than 3 years so excuse my ignorance. Any clarifications needed for a more concise answer let me know. Any info would be appreciated.
JDSRealEstate, hey, look at the bright side, at least you didn't get a ton of monkey shit thrown at you...here is my best guess on threads that might be helpful:
More suggestions...
Hope that helps.
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How long were you at the debt fund? Why did you choose development and did you need to take a pay cut?
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How long were you at the debt fund? Why did you choose development and did you need to take a pay cut?
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I spent 3 years at a debt fund before transitioning to development. The real estate finance/modeling skills were very relevant, but still had plenty to learn on other aspects of the development business.
If you’re coming from a relatively well known debt fund, and not too senior, it should be very possible to make the jump to another role in the industry.
Moved from debt at an asset management firm (non debt fund) to equity acquisitions at a top shop. It’s possible
Flipping the question around, do alot of REPE folks ever transition from equity (GP/sponsor side or LP/fund) to a debt fund? Is it considered odd for this to happen?
Was reading a recent newsletter from a major RE recruiting firm, that mentioned that candidates with equity expertise/background are seen as attractive candidates for debt fund positions. Any opinions on this?
Short answer: yes, an equity background is attractive to debt funds.
Most debt funds underwrite to the same level as equity and then back lever/finance their position to then become equity to another lender.
I've worked at a couple of debt funds and their underwriting is very simple, whats the in place NOI and LTV and what is the loan exit on term expiry. Defintely way higher level than equity (by equity I'm assuming you mean acquisitions and not equity brokerage). Even if warehouse facilities and leveraging the loan on the back end, its still simple. I've never even seen a CAM worksheet until I transitioned to equity underwriting.
Interesting that you've found to be the opposite ... what type of debt funds?
Do credit roles pay out bonuses as large as REPE folks get as in up to 100% of base in some instances ?
Yes, I personally did that. This does happen.
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