RE Asset Management Boring
Mostly useless rant, but does anyone else find asset management extremely boring? Looking to leave asset management for acquisitions or development, but wondering if anyone likes asset management and why.
Could be firm specific.
I’m an asset manager at a Multifam GP owner operator.. if you’re on the LP side or debt, AM is probably super boring, but I find my job incredibly interesting and intellectually rigorous. High comp + okay hours + daily exposure to new structures and challenges = me being happy. If I didn’t have these things I would leave.
What do you like about it? I'm at an institutional investment firm, and we own 100% of the properties I'm on apart from a JV deal where we're the LP (actually my favorite/interesting property, but unfortunately less involved on a few things and more involved on others).
Think this is the common answer - AM at an institutional LP or lender is boring as hell and mostly administrative/supervisory work. At a GP it's far more involved with rigorous analysis, planning and strategy.
That being said, it's definitely suited to a different personality type than people who would love acquisitions, so YMMV.
I’m in AM at a large institutional shop. We are the LP on most deals, but do own 100% of some, so basically the GP on those. I love it. Everyday is different and even though we are the LP, we are heavily engaged in most aspects and daily communication with our JV partners. I also get exposed to Acquisitions as we team up with them to provide input.
People here get way too caught up in GP vs LP. If you’re at a large shop who does many LP (like a BX, PGIM, etc.) deals, you’ll get a ton of experience and won’t be so far away from the day to day. If you’re in AM at say, an LP pension fund’s RE group, then yeah, you’ll probably be far away from stuff. Enjoying AM is obviously highly subjective, but also depends entirely on your shop. You can be at a GP and be stuck in quarterly reporting role for the most part. Find a role where you’re engaged in all aspects from operations, reporting, valuations, underwriting, debt, etc and if you still find it boring, then yes, AM probably not for you.
I found AM pretty boring (New York GP), but only because my responsibilities revolved around variance analyses, LP reporting, managing property managers and budgeting.
However, if you're at a small/midcap I do think it's an excellent way to learn about real estate investing as you spend much more time with the P&L of your firms and likely get more insight into how to optimize assets, protect equity while driving growth.
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