Need help deciding between offers
Hey guys - long time lurker, first-time poster. Long story short, I’ve received two job offers and am struggling to decide between the two. Was hoping to reach out for any thoughts.
First one (Option A) is with a top firm (Blackstone/Starwood/Brookfield) as a Portfolio Management Associate. Second option (Option B) is still a respectable firm (top 10 PERE) as an Asset Management Analyst.
I’ve always been more interested in AM long term and frankly find PM work too far removed from the actual real estate. The big consideration here is that Option A all-in comp is significantly higher (by about $60k) than that of Option B. BUT Option B has heavily implied I could be promoted within a year at which point I’d be (I’m assuming) around Option A’s total comp anyway.
Underlying all of this is that I am struggling with high COL (NYC) as well as with a lot of student debt, which makes Option A more enticing but frankly I don’t find PM work all that interesting. Curious what you guys think! Is it worth sacrificing short-term higher comp for long term satisfaction?
For context I was bopping around random jobs for a few years and am currently in the RE group at a large institutional investment management shop for about a year.
If you want to do AM long term, then I would take the slight pay hit now and go with Option B (obviously after seeing if you can negotiate a higher salary). I get the whole thing about COL and student debt, but getting where you want is more valuable IMHO at the beginning of your career, especially if you know you are going to that name brand for 2 years and then will want to move again.
What’s the difference between asset management and portfolio management? I thought PM was better?
As an analyst/associate, AM is probably the better choice. You get to see how assets operate and potentially make decision.
For PM (as an analyst/associate) you are working under a PM probably doing a lot of reporting, business planning, etc, and are further from the asset. And in the long, there isn't a PM I know that wasn't in AM or Acquisitions for the majority of their career before becoming a PM because you can't become a good investor by doing paper work.
AM job unless the 60k difference is truly life and death. No question. I get 60k seeming like a lot when you're young but the variance gets substantially greater with seniority... and the difference between being low on the spectrum and high on the spectrum is whose in your network and how strong your skillset is. AM will teach you a more marketable skillset and will probably get you in front of more important people. Plus you enjoy the work more.
Agree with the above. Play the long game. You'll be better at a job you enjoy more anyway. And why not negotiate with Option B to try to close that comp gap a bit? Tell them how much the other offer is, that you would rather work for them, but that you have some important personal considerations like student loans/COL and then ask if would they be willing to improve their offer.
Great point.
There’s always a chance if the left gets control of all three places, your student debt goes bye bye, so roll with option B since that’s your dream.
What are you currently doing at your current shop?
I would lean towards the AM role. PM is great but it will be harder to make the jump in climbing the ladder to being an actual PM and those jobs are less out there than AM. Portfolio Management at the Analyst/Associate is usually heavy client reporting/decks/requests. Depends though on the firm and how inclusive your PM makes you relative to acquisition/disposition/fund strategy.
Currently I’d say my role is 70% AM / 30% PM. A lot of my time is spent on update calls, leasing calls (prospective tenants for a space, tenants wants to leave, etc.), legal issues, etc. which I do find interesting. Some of my multi properties have a renovation component which I’ve been excited about.
PM work is mostly just the quarterly valuation process and making sure assets are marked to market appropriately so that the fund meets a certain quarterly return. There are a few other PM reporting duties that are interspersed as well. I do keep the Portfolio Manager apprised of asset-level happenings and it’s cool to see how he thinks about things.
Damn this is tough call I feel like. $60K difference ? What are reasons you don’t want PM?
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