I sometimes see development firms have VPs or MDs with some sort of “Capital Markets” type role on their teams, and was wondering if anyone can give me some clarity on these type of jobs in terms of pay, responsibilities, typical backgrounds, scarcity of the job, etc.
Are these roles just for developers to have people in place to step around D/E brokers and go direct to capital sources? Or do these people simply act in liaison with D/E brokers as direct representatives of the firm when raising capital for projects, bridge debt needs, etc. Any insight is appreciated.
The people I've known or met with this type of title is the person responsible for arranging debt/equity for the deals/funds the firm executes. (typically the title implies institutional capital but this person could also do the circling of private monies and other IR duties, if that is part of the funding strategy). I think it most common at developers needing outside/LP equity. This person tends to a pretty senior/important person and probably spends a lot of time with the CEO, MDs/EVPs, and the CFO.
Most of the backgrounds I can recall are former D/E brokers and investment bankers, as they are often hired for their "rolodex" of firms/people to call. Not sure if the presence or lack thereof means the firm doesn't or does use D/E brokers, but this person would be the point of contact if they did (I think the general idea is to save the fees paid to D/E brokers making it "in house").
I would guess comp would be pretty good, given the importance of the role. Early in my career, this was a role I really wanted (I was in a boutique i-banking/DE shop), and saw them as the in-house capital team for developers. I know that when a firm had people like this, they were less inclined to hire a firm like the one I was working for then to arrange debt and equity, but they would still talk to us.
Thanks for the detailed response, you pretty much cleared up what I wanted to know.
I am actually early in my career and in the same exact position as you were (boutique i-banking/DE shop), not really sure where I see myself in 10 years, but was exploring careers in the aforementioned space, as well as if there are any careers where I am part of sourcing deals for a larger well-capitalized LP partner who isn’t 100% super safe and has a healthy risk appetite. As someone who was in my position, any advice or maybe some things you wish you knew early on in your career?
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