Is a billion dollar fund a good place to be ?
Hello, I just got an offer as an associate out of B school for a shop that just raised its 6th fund. It’s a 1 billion dollar fund and they do value add development as well as acquisition. Is this a good size fund ? I am not sure if it’s too small
We have size queens in REPE now.
I can’t handle this new generation.
not sure what you mean, I am new to the industry and I just don't know what a "good firm" looks like. How a fund size affects what I learn and how much I grow.
I don't think there is any reason for you to be passive aggressive towards people using this forum to learn and get their questions answered......
Size queens are women or homosexual men who emphasize penis size over general attractiveness or even overall sexual prowess.
Anything (funds) under $1.2Bn is bush league. I would pass on the offer and keep searching.
Agree. It’s $10 billion or bust. OP please decline that offer
Any firm only on Fund 6 is a joke
It doesn't matter. Stop focusing on meaningless shit and think about what the fund does and what you'll be doing for them. If all you care about is bragging to your friends about the size of the fund you work at (despite the total irrelevance of that fact to anything to do with your compensation, life, or anything else) then real estate isn't a great place for you to be.
As someone that's been capital raising for what feels like forever now, $1bn of fresh equity on fund 6 is prob a good place to be yes, especially if you're getting carry in that specific fund.
I guess B School didn’t teach you how much buying power $1bn is. Think of how many deals the fund has to close to spend it all, and how many you’d have to underwrite to even get there. Think of how many reps an analyst/associate would have in return.
Yes.
Most of these answers were ass.
Yes, $1Bn in equity is good. What OP wants to know is that, with this size you can get some good exposure to institutional deals and capital. Which is important from a learning perspective. You can make a lot of money doing smaller and middle market deals, but genuinely will not carry this experience upwards, while the institutional experience can absolutely be applied to smaller acquisition strategies.
I second this.
Nothing is too small to start with. There will always be a first time in everything. Oak tree doesn't grow overnight. So grab the opportunity and grow and adapt as new opportunities come. Good luck.
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