Pensive new grad (Finding the right company?)
I'm a recent graduate of a well-respected Masters in Real Estate Finance & Investment program here in New York City and am currently out networking/job hunting. I'm focused on Acquisitions roles but have found myself wondering, what are the best real estatefor? I'll elaborate...
It seems to me that a sensible way of organizing them all is by AUM. Let's say there are five buckets*:
- Institutions - The Blackstones, Brookfields of the world that dominate the market, largely serving as LPs, investing based on macro trends.
- "Enterprise" Funds ($5B - $40B) - Nightingale, Fortis, Investcorp. Competing with the above players but do not have nearly the same scale in terms of available capital and staffing.
- "Tenured" Funds ($500M - $5B) - Regional funds that may invest in broader geographies? Have been around the block and likely developed a solid track record of successful deals. Not sure of standard team size here.
- "Seasoned" Funds ($100M - $500M) - Relatively unproven, actively building a track record. More stable than below. Teams are pretty lean (10s of people).
- "Emerging" Funds (sub-$100M) - Very lean teams focused on getting off the ground. Investing by sharpshooting assets in a limited array of geographies. Hustling. Very actively networking with brokers.
For those with experience at any/all of these buckets, what is the difference in terms of culture, work-life balance, compensation, exit opportunities at these different sized companies (in terms of headcount and AUM)?
I care most about being treated with respect by my colleagues and having my input welcome in meetings, professional development opportunities, gaining real investment expertise, visibility into the investment process, and finally, I would love to have workplace with other 20s-30s year olds to develop friendships. You will notice I did not mention compensation because, while it is obviously important, it's not what's most important to me right now.
- My background is in the brokerage side of the business at one of the top 3 firm's. I worked in a market that was not New York and I was not doing investment sales brokerage, so I do not have direct finance experience. I have noticed that this is somewhat of an obstacle in getting interviews, however, I feel that an Acquisitions job is attainable given my Master's degree. I have considered re- , but I would prefer to get right if I can.
- I'm also interested in the Tech-forward real estate investors (i.e. Fundrise, Cadre, RealtyMogul, etc.). I am curious what people's perceptions/experiences with these companies is and how they stack up to the more traditional PE funds?
- I'd like to stay in New York if possible, but am open to relocating to a market like Austin, Denver, Nashville for the right job.
*Disclaimer: these descriptions may be somewhat off given my lack of experience in the business. I wanted to do my best at providing a framework for a productive discussion.