Joining an underperforming RE lending platform
Dear Monkeys,
I’ve received an offer from a boutique platform with better pay, increased responsibilities, and in a sector I enjoy. I also had a strong rapport with the MD I’d report to. However, the firm has been struggling—low deal flow, high cost of capital, significant turnover, and weak bonuses. They’re backed by solid institutional investors, but I’ve heard the backers are losing patience, and the firm may be close to running out of options.
I’m currently in a stable role with lower comp and responsibilities. This new role is an upgrade professionally, but I’m concerned about joining a sinking ship.
What would you do in my situation? Is it worth the risk, or should I stay put and continue looking for a better platform?
Many thanks 🙏
Where have you heard that the LP’s are losing patience? I’m not challenging this, just want to ensure your sources are credible
Personally I wouldn’t join. Clearly you’re solid enough to get other offers. There’s plenty of firms with no red flags (capital base wise) who pay well that will likely be hiring soon. Along with that the job market is pretty competitive and if you do lose your job you could be SOL for awhile
Thanks a lot for your reply 🙏
Heard it straight from a former principal. The issue seems to be that they have plenty of dry powder but aren’t deploying enough, so they’re falling short on generating the required income.
The gamble here is joining while they’re at the bottom, hoping that as rate cuts kick in, deal volume picks up, and that’s where the big win could be.
Thoughts?
Personally, would pass. Plus you mentioned bonuses are low so that’s not very motivating either. Just my take on it, I’m sure others may have differing view points.
Bump
I'd hold onto current role, and very gracefully decline the job offer. I'd cite some new, unforeseen opportunity / circumstance with the current firm so it doesn't seem like you have concerns with the new firm (obviously), and stay in close touch / friendly with this new firm (to see if they turn it around in the coming quarters / years).
In this market, stick with the devil you know. Just my two cents.
Thanks a lot for sharing your opinion. Making the decision really pains me because this role ticks all the boxes and would be a perfect opportunity to transition back into Real Estate.
Oh, I didn't realize your current role is non-RE and you want to get into RE. Well that changes things, and I think moves needle closer to 'take the gig' but I obviously don't have full picture. good luck
Update: They've sent a revised offer with slight increase on the base.
It really depends on where you got your information and how credible you believe it is. I'd probably still take it unless you think the company goes under in the next year. You can likely lateral after that if you need to after that anyway.
That’s the direction I’m leaning toward. The firm still has around $1bn in dry powder and commitments locked in for the next five years, so I don’t think they’ll fold within a year. But the low performance is still a massive mental block, making it a tough life choice. Appreciate you sharing your perspective—it really helps!
Why are they hiring if their performance isn’t that great?
It’s because they need to backfill the position ASAP. They’re looking for a doer since the principal won’t be able to handle the modelling by himself. Super lean structure with just 4 juniors and 3 seniors.
Is this west or east coast?
London, UK.
The market is as dire as the US or probably even worse.
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