Mezz/Pref Equity CRE Lender VS Boutique M&A shop
Hello friends!
I recently graduated college without a CRE background, and strangely found myself with offers with groups ($3-5B AUM) focused on preferred equity, bridge, and mezz CRE. They also have arms that deal with acquisitions and AM, although I would be on the lending / equity side.
I was wondering if anyone could help me to better understand the career trajectory of lending / equity RE.
I have experience in traditional IB, where I have offers from boutiques for M&A, although REPE is really capturing my interest.... not sure which will provide me with better opportunity and would really appreciate your input.
I don’t know anything about real estate although I do know a lot about structured finance which is what they liked, as embarrassed I am to say this.
Thank you!
Hi fromthebottomofthebottom, yes, I'm a bot, but I'm also good looking. Hopefully, these threads help you:
If we're lucky, maybe these professional users will respond: roxyco ThetaMan Andrew-Warren
I hope those threads give you a bit more insight.
Personally, I think the specialty/non-bank lender space is quite interesting. After the regulations that came about post-financial crisis, banks have been unable to fully finance real estate projects with senior mortgage debt. Non-bank lenders, like a Square Mile Capital or Madison Realty Capital, were born to fill the gap. These shops fill the financing gap anywhere between 65%-90% LTV/LTC through mezz and preferred equity positions. They also thrive on originating short-term, higher yielding bridge loans and acquisitions of previously originated (often times distressed) loans. Most of the PE mega funds (Carlyle, Apollo, Blackstone, Ares, etc.) have groups dedicated to this sector.
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