Principal-side Capital Markets
Hi monkeys,
I recently received an offer for a capital markets group, at the analyst 2 / associate 1 level, for a top developer. It would be equity / debt financing for their entire global portfolio, placing capital across asset sectors and geos, with particular focus on the US. I previously wasn’t considering this path, but it seems like a really good opportunity, so I have a lot of questions.
Main questions:
How would a principal-side capital markets team differ from a third-party CM team representing developers, and how competitive would this experience be for pivoting to development in the future?
Some prompting questions:
Since I’d be limited to only the firm’s pipeline, I’d assume the biggest difference would be volume and variety of deals, but are the reps on the principal side better learning experiences (if I decide to go off on my own in 20 years)? Do these teams dive deeper into deal economics? How do strategies differ? Is there more focus on strategic capital raising and maximizing value for the GP piece? To elaborate, I assume the in-house model has less focus on turning deals - how would this change the strategy of the team and quality of the experience? What are the exit ops like and how might they differ from 3rd party CM teams? I know many people who’ve worked for CBRE/JLL CM teams and have ended up working for clients in an investment / capital raising capacity. Would this experience provide a solid foundation to lateral to an investment team in development?
I know this is question overload. Would really appreciate any insight. Thanks!
The equity portion threw me off here - so would be be responsible for raising equity for the firm's pipeline as well as working with lenders to secure financing? Or are you placing debt/equity that the firm has already raised into third party deals? If the latter it's the same as any other acquisitions/investment analyst role in REPE or at a credit fund, but blended.
Typically in-house capital markets teams are just the debt guys and work with lenders to secure financing and manage the portfolios debt, and maybe do some equity raising depending on structure.
Our in house capital markets team handles both the debt and equity for all our projects
Sure, but raising debt/equity not placement correct? I assume you have an investments team that determines where the capital is directed?
OP said he would be "placing capital across asset sectors and geos", which to me is not indicative of a capital markets role and more indicative of investments.
I read it as he works at GP placing debt and equity in their projects across geographies and assets which is how my company is set up. I might have misinterpreted.
Nope, you got it! Thanks for the clarification provided
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