Need some advice on breaking into REPE
Hi all, newbie here.
I just started in PubFin IB a few months ago (graduated early) within the RE group at a MM bank, and need some advice. To preface, my background is a little odd: target, lib arts major, a ton of RE/Finance related internships (from boutiques to BBs) and no connections in the industry. The basis of my position is reliant on structuring RE-backed tax exempt debt/some MBS work on the taxable side, and some infra/project fin work (mainly renewable energy and interestingly enough raising equity). Anyway, my main goal is to break into a top 10 REPE (doing acquisitions/other), and either obtain a RE-concentrated MBA or MSRED down the line.
My question is, what do you think would be more plausible; should I do my two years as an analyst in this position and try to recruit for/lateral to REPE asap? Or, should I attempt to lateral into REIB/non-pub fin group, either at my MM or other, and then recruit for REPE? I don't mind repeating the analyst stint/networking my ass off to do so.
I would appreciate any other suggestions/advice/similar stories.
Thank you!
If you don't like PubFin IB and want to end at REPE, doing an internal lateral to an REIB team seems to make sense, if that is an option at your firm. I would be careful to hop firms so early in your career, it can be a very bad sign (and not easy to do). Swapping seats internally is fine.
Getting 3-5 years in REIB is really good experience for REPE. You will probably want to do an MBA/MSRE or some grad degree to get the max lift. Don't worry about rushing it, REPE and RE development want people with experience, most of those firms don't want to be a 'first' job.
Does your bank see a lot of deal flow in REIB? God knows how all that will look now, but that is a universal problem. Deal flow is critical.
Could not agree more that most REPE and RE development want experienced hires, they typically do not hire straight out of undergrad. I do believe that some big groups do, Alliance has.
Appreciate the advice! It's not that I don't like PubFin, I just assume that REPEs would rather take the REIB guy versus the guy working on the muni/structured side of RE.
And yes, thankfully, there is a ton of deal flow in my group (way more than our REIB group tbh).
If you stay in PubFin, then getting an MBA with RE conc or MSRE will be more helpful/needed. The experience with PubFin is not useless within RE, and infrastructure is becoming a new field of REPE or PE in general, so maybe you are in a really good place.
I've seen the lateral switch from IB to REPE at non-analyst levels. IMO I would do the two years in an RE group at the MM bank, and then transfer. I would imagine comp is higher for junior employees at a MM bank than a REPE group, so it would be good to get cash in the bank, and then move into an associate type role in REPE. But it depends what your long term goals are, are you fixated on a top 10 group? I think institutional experience is very valuable, but typically your skills become very niche. At smaller firms, you typically get more exposure to different parts of real estate. For example at a smaller firm you might be the one running the numbers, raising capital, finding debt, and asset managing. While at a large firm it typically becomes hyper focused. In my experience I started at a firm that had $6B AUM, and I was doing a lot of asset management, acquisitions, development, and dispositions. Now we are +$20B AUM and all of our roles have become more focused, now I just do development and a tiny bit of asset management. I don't think you can go wrong with either of the routes you laid out. One may be more fruitful than the other, but you'll never really know. WSO is coming out with a technical interview prep course for REPE, be sure to check it out when it comes out!
Appreciate the advice! And do two years in my current group and then lateral to my banks REIB/other firms REIB? Or two years in my group on try to lateral into REPE? Also, I'm not fixated on a top 10, but hey if it happens, it happens. I'm more fixated on working with a variety of asset classes/different deals. When every deal is vanilla, it gets boring! And will definitely check out the WSO REPE prep course (currently using leveraged breakdowns).
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