How specilaized is CRE PE?
I have an offer to join a CRE PE focused on solar / wind energy farms in a specific non-US region. My questions are:
How hard is it to switch to residential / warehouses / other energy RE such as geothermal for example?
How important is location? If I decide that I want to live on the other side of the world at one point and get the same type of job there, how hard would the switch be?
Early on its pretty easy, more difficult to switch asset classes later in your career though still not impossible.
Location is more important IMO. You can move around the country pretty easily (although easiest to move from major markets to smaller ones than vice versa), but going to a different country would be tough because of different regulations, tax systems, etc.
Thanks for the reply. Switxhing between asset classes (e.g. HF, PE, VC) is more difficult later on, thats clear. In my question I was referring to different kinds of subsegments, for example if I joined a solar / wind-focused CRE PE, how difficult would the switch be to warehouses, residential buildings or geothermal? I would assume that since all of them are in the realm of real estate, the skills are pretty transferrable. Am I incorrect in that?
You probably are incorrect about that. I'm kind of talking out of my ass here, but it really sounds like you're getting into the renewable energy space. You're going to be buying land in largely rural areas and probably leasing it out to a solar farm operator, or so it seems to my uneducated eye. Which at its very very very most basic level is similar to real estate; back into a land price by valuing future cash stream from the leasehold. Maybe there is some small amount of entitlement needed. And again, maybe this is just my ignorance of the complexity of buying land owned by a wind farm, but buying a residential building is going to involve a lot more than that. Creditworthiness of individual tenants, managing every line item of expense, dealing with collections/angry tenants, etc.
As far as I know, they build the wind / solar farms from 0 amd operate them as well.
As far as I know, they build the wind / solar farms from 0 amd operate them as well.
Right, so the core business is renewable energy, not real estate. Nothing wrong with that at all (I think it sounds pretty neat), but if you want to transition into a commercial real estate role and they ask about your experience, the answer of "we build and operate renewable energy installations" isn't going to resonate. It only relates to real estate in the sense that it sits on land... which can apply to any business.
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