Is Debt/Equity Placement At A CBRE, JLL, etc. Still A Good Start As A 1st Year Analyst?
Hey guys,
Wanted to get everyone's opinions on this - considering the current capital market environment, is D/E placement at institutional brokerage still a good start to one's career? At the shop I'm interning at (MetLife/AIG/Nuveen), it seems like there's no need to hire a new acquisitions analyst (given current deal flow), but rather keep new analyst hires on the asset management side - if I want to work on deals upon graduating, would D/E placement be a better start to a career in CRE? Do you think deal flow will pick up by 2024?
My eventual goal is to become a sponsor, so pay wise in HCOL city, I'd love to clear 90k+, but obviously learning experience is much better. I noticed that on the asset management side, you don't learn much about underwriting and investment rationale behind a deal, hence the question. I'm assuming D/E placement will give you a better picture, but please correct me if I'm wrong as well.
Thank you for your input in advance.
Still a great spot to start. Institutional group's like Stolly's team at Newmark are still getting deals done, and I'd argue D/E brokers add the most value in fragmented market's like today's.
Do you think this would still be better than asset management at a lifeco in terms of practical learning experience in your first 1-3 years? And do you think analysts at a strong team can still clear 100+ in this market?
Top teams are going to vastly outperform other teams in tough times. When debt is cheap and lenders will lend on anything, any D/E team can get deals done. But now, all the deals are getting done by the same teams, Dusty/Jordy, Chris Peck, Traynor/Millon, Aaron Appel, etc.
Yes, if you want to become a GP in the future I'd go for brokerage. You'll build up an invaluable network of lenders, potential co-developers, project consultants, etc. that you can draw on down the line.
That's not to say that you won't learn as much in an AM seat. You'd learn the nitty gritty of operating institutional-grade buildings, but in my opinion, that won't be particularly helpful for teaching you how to structure and close deals in the future.
Can't comment on comp this year, but I can't imagine bonus pools are looking too hot...
Interesting - thank you for the advice. Do you think next year might be better looking at slowing inflation and the election cycle coming up? Heard base for CB/JLL is still in the 75k range which for HCOL city will be tough, assuming analysts are gonna take a good haircut on the bonus. Also, would you then say getting a job at a sponsor shop would be better than D/E placement if you stick with your niche?
bump
There's zero need to bump this thread? Throwawaybaboon is right - if you want to work in acq, do brokerage. If not, do AM and learn how to run the buildings. Simple stuff.
D/E with CBRE/JLL is a solid spot. Given you have an investment sales arm pushing business your way is a huge plus. Knowing how to put a capital stack together is what separates the men from the boys as sponsors.
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