How to move from IB to REPE?
Hey guys,
I'm in the M&A team at one of the lower bulges (think UBS, Wells), and I'm very interested in moving to REPE (ideally in the PERE 20 such as Fortress, Starwood, etc.). I know many of these firms prefer IB RE, but what can I do to effectively position myself to get to REPE?
I think first and foremost you need to have a good story as to why you want to move into RE. The last thing they want to do is hire you, train you, and then have you decide you don't like RE and leave shortly thereafter. If you can demonstrate you like RE and are somewhat knowledgeable about the industry that will go a long way.
Really appreciate the response. What are the best ways to do that from where I am now? Do you have any recommendations for what I should do going forward to prove this other than reading about RE?
MBA to REIB to PERE? (Originally Posted: 01/16/2014)
Hi all,
I've been doing some searching and have a pretty specific question. I've looked through many older threads but didn't find the answer so I figured I'd post, especially given how helpful the folks in the RE forum are. I've done a lot of soul searching and realized that RE is the path I want to pursue. Now, I realize there are tons of options within the field so I spent considerable time learning about them and seeing where I could see myself.
I'd like to do Investment Banking within RE. I've been out of school for a few years so I realize an MBA is needed for this. I will be attending a top 10 MBA program this fall. Now my question is, is it common/possible for a post-MBA IB associate to make the jump to REPE after a few years? Or is this jump only made at the analyst level, similar to vanilla PE?
Again, I really appreciate any help you can provide. I've learned a ton from this forum and have found the RE folks to be extremely helpful.
bump
REIB to REPE is possible. You have a good shot. That is depending on the REPE firm. If by REPE you actually mean Blackstone and Carlyle, well that's another story. It'll definitely be harder.
At the end of the day, it comes down to networking. You'll need to demonstrate that you're smart and ambitious.
No, it's definitely possible post-MBA. I know people who have done this. No big deal. Again, I'd echo the above poster regarding the Blackstones and Oaktrees of the world, but getting into an opportunity fund post-MBA is doable.
Thanks guys. This helps. I wanted to make sure that if I do REIB post-MBA, I wouldn't be cutting off all chances towards REPE down the road.
Not really related to the thread, but which school are you going to?
Stern
It is not nearly as rigid as vanilla PE. The very best firms are more stringent on their requirements, but most hire ad hoc and its relationship driven and so on. If you get a BB REIB job after MBA (which seems doable if you go to a decent program), then you should be able to break in. Either directly, or go to a REIT or some place buyside first and do investments and eventually break in.
What did you do post undergrad? Also, is your goal to ultimately be in REPE? why not skip REIB and network your ass off to to REPE? I mean, not BX or anything, but a smaller boutique shop & by exploiting your network you have a chance. I am assuming that you have somewhat of a transferable skill set from your work experience post undergrad given that you are going to NYU for MBA.
Thanks for all of your responses everyone, it's great to know that the REPE door won't be closed.
To Gentleman's question, I'm not 100% convinced that REPE is the end game. Because of this, I'd like to do REIB first. Also, I'm assuming that with REPE I would be working more on the asset-level. This is fine, but I'd like to have some background in corporate/transactional-based RE as well. I think that background could be very useful not only in REPE but if I'd ever like to begin managing a small portfolio of my own. The thinking is that I'd pick up the finance/capital skills within REIB and then asset-level skills at REPE. Post-undergrad, I've worked within the credit risk dept of a BB, so somewhat-yet-not-really transferable skill set (wasn't focused on the RE side).
Absolutely doable. Good luck.
FIG I-Banking to REPE Associate? (Originally Posted: 05/26/2015)
Hello Monkeys,
I am new to the world of real estate and would very much appreciate all your insight and advice. So currently, I am in my second year of Financial Institutions Investment banking (covering mortgage reits, banks, and insurance) and to be honest.. I was not clear as to what I wanted to do afterwards. I have done a lot of research on the different areas of the buyside and I must say I am very much drawn to REPE. It seems very fun especially in NYC working with CRE and Apartment Buildings. So my question is whether it is too late for me to get into REPE - since I am coming from FIG and not a real estate group. Also - what is the typical structure at REPE firms and compensation? Is it two years and out?
If it is possible for me to still get into REPE, what would be the best way to prepare? I am currently reading Fisher's Real Estate Finance and Investments book and thoroughly enjoying it. I am planning on buying the real estate course from BIWS next.
Thank you again for all your help!
Go network with real estate people, and have a convincing story as to why you want to get into real estate. You'll be fine. You're nowhere close to "too late." Plus, the job market for real estate is pretty hot right now.
I would guess your modeling skill set is strong enough. Anyone with a brain who is hiring you would look at your resume and say to himself, here's a kid who can run the numbers, I'll teach him about the real estate. You can read a book or take a real estate modeling course, but you're probably going to break in by talking to enough people and eventually making a good impression on the right one.
Thank you for your feedback. That is most definitely encouraging. In terms of networking, how would you best recommend I do so? I am planning on reaching out to all my analyst friends and asking if they know anyone in REIB or REPE, but in case of no leads.. How should I go about meeting people?
Are you already in NYC? If so I would recommend ULI and other organizations like that. Also, not sure what school you attended but reach out to alumni and friends/family. RE is a small world and even one connection can lead to many.
Thank you for all your feedback. This is most definitely very helpful.
You cover mortgage REITs and banks, for god's sake. By default, you're actually more of an expert on real estate than many people who actually do real estate 9-5.
Switching from general IB to Commercial Real Estate PE (Originally Posted: 12/17/2014)
Have an offer with a fund that invests primarily in RE assets (hotel, mixed-use, healthcare). Background has mostly been generalist. I've done some RE modeling and my understanding is that it doesn't customarily follow the traditional 3-statement modelling like other companies, primarily since the BS is abridged so it's mainly IS/CF modelling really. So I was wondering, if I switch into RE PE, do you forget how you to do 3-statement modelling? Do you forget any of your corp finance?
bump
IB -> REPE (Originally Posted: 08/21/2015)
So I've been working in REPE doing both development investing across the cap structure and acquisitions primarily in MF, hotel and healthcare for the past year. Development I realized is extremely complicated from an investment perspective and if anyone else here is doing dev investing, would love to chat more as the underwriting and negotiating the leverage is really complicated, or at elast this fund makes it so.
I've come to realize that most RE modelling is pretty much cash flow modeling, ie the direct method of the cash flow statement. Having come from IB, where you moslty model IS/BS/CF for every deal, this has been a hard transition for me. I guess, do people in RE acquisitions roles forget how to model IS/BS/CF after doing just straight CF modelling after a while, and do you forget how to look at audited GAAP financial statements after working in REPE? Since the modelling is all cash, I'm just confused if this is the case with RE acquisition professionals later in their careers...
Thx Zack
RE IB to REPE (Originally Posted: 07/13/2012)
3rd Year Analyst in REIB, looking to make change to REPE. Looking for info on the following:
1) What is comp like starting out, assume acquisitions role, go to REPE shop at end of 3rd year
2) Can anyone provide any information on culture of Westbrook? Size of deal teams, lifestyle, hours, etc.
Thanks
Can't you just find entry level people in the industry/Westbrook and develop a relationship with them to ask them this? I don't know how many people here are gonna know the answer to your question
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