Is the wells fargo CIB Commercial Real Estate Analyst program a good way to get into REPE?
I guess in addition to this, what are other exit ops available / is compensation in this line of work good down the road
The comp will follow pretty standard corporate banking structures from what I can tell. Could be good for REPE if you get yourself into the multifamily/agency lending group. I know someone who exited that group to move into REPE but at the end of the day it just comes down to how much work you put in to get there I guess.
Does anyone know if they would take an analyst with 3 YOE? I have 2 years in consulting, almost 1 year in CRE
Will opine as current Wells analyst. Great place to learn with great culture. Pay is market. Base is standardized across group and bonus varies. I’d say a lot of Wells analysts exit to shops such as BGO, KKR, APO, Carlyle, Tishman, etc. Every reputable REPE banks with us so it’s pretty easy to get exposure to their deals and use it as a selling point when interviewing. Although all the groups at Wells are top notch, I’d say certain groups give you a better shot. For example, a lot of what you learn in the agency group is not really transferrable if you want to do acq at Starwood/BX because agency transactions are very conservative/vanilla and don’t stimulate any critical thought. The buy side is opposite, you’ll be expected to bring fresh, creative ideas.
Idk how anyone manages to break in to REPE with the skillset you build at WF CIB. You're just doing on balance sheet senior loans for core assets. I don't see how you are in any shape or form fit enough to take that experience and model a value-add logistics deal in southern Spain for BX or a REIT privatisation type-deal at KKR or Apollo. Maybe you could enlighten me on what positions those people are leaving for. DCM role would make sense.
It's REPE, not splitting the atom. WF CIB program gives you a good base - you understand markets, how deals work etc. A learning curve once you go to REPE, but nothing a little REFM or BIWS course can fix.
Clearly never done a value-add deal then. No firms are picking a "real estate - educated' type from a CB with no modelling experience beyond "what's my interest coverage" vs a LevFin / M&A geek from BB or even MM. Maybe for Core investors it doesn't matter. But trust me modelling in RE is not always straightforward when you are actually in PE, not just buying an Office asset in Houston.
FWIW - I'm a former WF CIB analyst who works in development and has several friends who were in my class who work at REPE shops in acquisitions.
For example, let's say you are looking at doing a value-add retail deal. The sponsor sends you their deck and walks you through the business plan. As an analyst you have to evaluate their business plan, underwrite cash flows on a stabilized basis and in Argus, and then write a credit a memo to your committee recommending loan sizing, terms, structure etc. That is quite similar and very applicable to what you would be doing on the principal side....
So did La Salle get back to you or not?
You’re overcomplicating this. First, understand that funds like APO and KKR operate different than other funds because as value investors, they seek hairy deals where they can generate alpha. A lot of reputable shops (BGO, TS, etc) really understand real estate and don’t try to make it complicated with unnecessary scenarios.
Second, All firms have a template for different deal types so as long as you understand how and why the deal works then you can learn the numbers/modeling. I actually went to a conference where Henry Kravis himself said a lot of analysts just know how to throw shit in a model but can’t explain in words how the deal works.
Third, most REPEs recruit from banking (whether it be IB or commercial). REPEs understand that banks will provide immense training and instill fundamentals and good business practices into their analysts. Knowledge about esoteric deal structures can be taught whenever they get over to the principal side.
Yes. Wells is the best commercial bank to learn real estate.
As with any commercial/corporate real estate banking role - it gives you a foundation in the industry and can get a foot in the door for interviews. Are shops going to prefer you over somebody who was an analyst at CBRE/JLL/CW/Eastdil? Probably not, but if you interview well you'll be able to find something.
Definitely would give you a leg up for private credit.
LOOOOOOOL
You are drinking the coolaide if you think a REPE shop is going to value brokerage experiance over someone at CIB
I think it depends a bit on the culture of the REPE shop you are joining. If you work for a more conservative group, they might like a CIB analyst. If working for a more aggressive group, then a brokerage analyst might be better.
Dawg I work in REPE/development and handle analyst hiring. Take a lap.
I think you're drinking the Wells kool-aid. Working as an Analyst at Eastdil will open many more doors than an Analyst at Wells. Maybe not true for other brokerage houses, but I can tell you with full confidence that the Eastdil skillset and network is better and more respected than Wells. You'll get looks from the highest quality shops and have a path into any area of real estate investing (opportunity funds, hedge funds, development, core funds, debt funds - pick your flavor). The same (particularly among the elite funds) cannot be said for Wells, although Wells has historically had a very strong real estate fundamentals training program (much better than the other money center banks because Wells has been a sticks & bricks specialist).
HOWEVER, no one has mentioned this and it's an important consideration if you're weighing a job at the bank and want to focus RE experience: Wells has had a lot of turnover in the last 6 months, as the firm is moving in a different direction from its historic positioning in the market as a balance sheet lender toward more of an "investment banking" model, where they're focused on generating fees from large corporate clients by cross selling their various product/service lines to one-stop-shop customers. They're essentially looking to become more like JP Morgan, which is all good and well, but that means they're moving away from the sticks & bricks lending that they've historically been known for. They have not been very active since the start of the year and are generally considered to be out of the market. This is causing a lot of frustration at Wells and many mid- and senior-level pros have been leaving as a result. Wells is a massive bank and there will probably always be a meaningful amount of direct CRE lending, but if that's no longer a core focus / what's valued, then the direct lending real estate deal experience and training won't be as good. I don't see this changing any time soon.
Anyone get any updates?
Answer is yes. But be careful about what group you choose. Best not to go into one of the specialty groups that are niche. Much better for you to go the teams like RESF, RESCM, RESF, CMLSF, or REIT Finance that does all the asset classes.
Nice when did you hear? I’m still waiting.
Community Lending and Investment is definitely niche, but is it still a good group if you're looking to stay in the affordable space?
I just got an offer for CMLSF. Would love to get your perspective on the role if you wouldn't mind DMing.
As an analyst in the real estate securitization & capital markets group at WF doing CMBS originations, I don’t think the real estate banking group is a great place to go anymore. Wells Fargo is not doing any origination on the books for a while and so the role is very heavily weighted towards asset management. You’re basically just running scenarios for clients asking for loan modifications and doing portfolio reviews. Everyone on my floor who works in REB hates it. Try to get into RESCM (my group) although I don’t think we’re hiring anytime soon. REGAL is honestly the best place to be if you’re set on REPE.
Recently got an offer with WF CRE. Would you mind DM’ing?
Would you mind sending a list of the top groups in order for REPE or investing exits?
Voluptatem voluptas praesentium vitae exercitationem omnis nesciunt. Iusto hic est architecto corrupti ea dolore cum. Soluta earum consequatur aut rerum tempora. Et animi quis cum molestiae itaque quidem laudantium.
Ipsam qui ut iste et. Maiores exercitationem fuga vitae esse. Et quo et exercitationem explicabo aspernatur nihil. Voluptates dolor necessitatibus odit nisi. Officia unde omnis voluptatem aut. Praesentium doloribus consectetur doloremque. Est excepturi blanditiis illo rerum eum aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Nulla quia ad sed qui. Sed nam quo quaerat et commodi aut nulla est. Qui et at esse reprehenderit. Quod voluptas velit hic impedit sed quo recusandae. Nihil non corporis harum minima. Debitis reprehenderit saepe ducimus commodi et quam.
Eligendi eum itaque fugit et. Perspiciatis quia eligendi corporis debitis qui sed occaecati aliquam. Sint ut eos nihil eum natus commodi. Libero vitae ea asperiores quia vel.
Magnam iure aut repudiandae magnam et enim. Similique rem perspiciatis et neque. Odit deleniti dolore quibusdam. Et rem quia explicabo omnis ipsam et quis.
Amet magnam a saepe voluptatem eaque. Impedit sed nihil sunt voluptatum dignissimos iure. Quia eos qui dolores quos.