RCLCO Thoughts?

Hello WSO Fam -

Hope everyone is having a good summer. Have an opportunity to connect with folks at RCLCO, and wanted to get some insights.

  • How is the company culture? 
  • What is the company's reputation in the industry? 
  • Is this a good place to learn? 
  • How well does this skillset transfer to other specialties?
  • What advantages does working here provide that you wouldn't get elsewhere (capital markets or principle side)
  • Anything of note about leadership?

Thanks in advance!

15 Comments
 

Limited interaction, but the two or three people I met both seemed very smart but arrogant. Consultants who seemed more focused on showing how smart they were rather than executing deals.

Probably not a bad place to learn a lot, but not sure how smoothly the exit to a development or acquisitions seat would be if you get pigeonholed.

I would rather hire someone who cut their teeth at a brokerage rather than a consultant to join my investments team.

 
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I worked there a while ago, so some of this is stale, but I keep in touch with a few people there. They split the company into Fund Advisors and and Real Estate Advisors? Which are you talking to, or both?

  1. Company culture - Generally decent "no jerks" applies, but as the comment above said, given its consulting roots it attracts a lot more intellectual types that are academically smart, but maybe not as socially adept. Work hours were 8:30 - 7:30, but if there's a live deal/urgent deadline it can go to midnight+.
  2. Reputation - Generally well thought of, but not a major brand. Exit opps were decent when I was there, Fund Advisors will be much better from that perspective, and I really like who heads that part of the company.
  3. Learn - you'll get a very broad real estate education so it's a good place to figure out what you'd like to do while learning more about specifics in the industry.
  4. Skillset - decently well, depends on whether you go into the RFA or REA side though and depends on what you want your next step to be. Coming out I knew a lot about general market trends/overall real estate and got decent in excel, but I was behind who I would consider peers in actual deal modeling (this was a while ago before the split, RFA may be better now and REA is probably worse)
  5. Advantages - You'll get similar exposure that other consulting jobs would to CEO's/VPs etc. at other companies, just limited to the real estate world. 
  6. Leadership - Not a fan of Chairman, but the CEOs of the respective companies and the MD in Texas I personally thought were solid and great people to learn from. 
 

One thing you need to be eyes wide open about. The business model of RCLCO is effectively this - asset managers, acquisitions guys, and developers pay you to validate their ridiculous assumptions. You are effectively trying to back into an analysis that justifies what your clients want so they can use that to sell to lenders and LPs. I think it'd be a good place to learn for a couple years. But I would not want to do that long term.

 

Worked at a similar firm in the space and this 100%. Lots of deal exposure which is great but it’s a lot of ‘narrative building’ vs. hard analysis. That said, I worked on a bunch of engagements with the biggest names in CRE which was great early in my career. It’s a tricky pivot out as well in terms of exit opportunities, you don’t have transaction experience, you might not have direct underwriting experience, I pivoted to a operations focused MF asset management role but that was a tough needle to thread. 

 
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Ditto what Larry David and CoffeeBong said. I did my MBA internship there. I learned everything I needed to from their platform in those 8 weeks. Once you've done one of their apartments studies and understand the mechanics of their models, you're basically just doing a creative writing assignment on justifying why this building is different from the others and why it deserves top rents. 

Hours definitely aren't 8:30 - 7:30 for the real estate advisors, maybe the fund guys are different. Definitely had some hardos who really bought into the consulting mission.

It was very hard to stay engaged, I could do the work in like a quarter of the time they gave me and didn't need to continuously review it with my boss even though she was like it's an iterative process. You'd need two rounds of edits at most, I could do the job in my sleep. Didn't get a return offer lol, I was literally quoted "He's good at the work but doesn't seem interested in being here" in my end of internship review. I don't disagree with the assessment. 

 

I'll chime in with some color on the RFA side since most experience discussed above is REC. The RFA guys do everything from direct investments & coinvestments underwriting to fund underwriting to strategy recommendation. I know a few people there well and while I personally find that work interesting, it is best transferable to another advisor or a sophisticated institution (pension/endowment). Reputation is good for those skills but again there is little to no sourcing your own deals and you don't get in the weeds near as much as the GPs - which would be a plus imo, you don't have to spend months a year banging your head on the wall on deals that never pencil. The client book is interesting too, working with Asian pensions, MENA sovereigns, and US pensions.

It is a great place to learn real estate as a whole, despite them having house views I think you're encouraged to have a view of your own on the sector/market/deal etc. Lots of real estate guys are getting their first education in the cyclicality of the industry right now and I think seeing it from the 30k foot level serves you well in a career. Jaded take perhaps, but I feel most real estate guys discount how much their deals live or die based on macro conditions outside their control.

All told if you're planning to use it as a stepping-stone to a GP it'll be good but not great, but in-and-of-itself and related to other paths it is a great job.

 

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