RE IB to REPE

Starting FT this year at BB bank NYC. This seems like it’d be an obvious and good move, and is definitely my plan, but I’m curious from guys in REPE at big funds or previously in REIB what you think about the skill transfer and exits are.

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Starting in Real Estate Investment Banking (REIB) at a BB bank in NYC is a strong foundation for transitioning into Real Estate Private Equity (REPE). Based on the most helpful WSO content, here’s what you need to know about skill transfer and exits:

  1. Skill Transfer:

    • Financial Modeling: Your experience in REIB will give you a solid grasp of financial modeling, including LBOs and property-level acquisitions. This is highly transferable to REPE, where you'll focus on underwriting and deal structuring.
    • Transaction Experience: REIB exposes you to capital markets transactions, portfolio-level metrics, and REIT-related deals. While REPE is more asset-focused, the transactional knowledge you gain in REIB will be invaluable.
    • Networking and Deal Flow: Working in REIB allows you to build relationships with brokers, developers, and other key players in the real estate space, which can be leveraged when transitioning to REPE.
  2. Exits to REPE:

    • Demand for REIB Analysts: Many REPE firms actively seek candidates with REIB backgrounds due to their strong analytical and transactional experience. As noted in WSO threads, some REPE firms even prioritize hiring analysts from BB REIB teams.
    • Pathways: After 1-2 years in REIB, you’ll be well-positioned to move into REPE. Firms value candidates who can model complex deals and understand both the financial and operational aspects of real estate.
  3. Additional Insights:

    • Broader Opportunities: While BB REIB is a great starting point, don’t overlook opportunities at boutique or brokerage REIB firms (e.g., Eastdil, CBRE). These roles often provide more asset-level exposure, which can be beneficial for REPE transitions.
    • Preparation: To stand out, ensure you can model property-level acquisitions and understand the nuances of real estate investments. This will make the transition smoother and demonstrate your readiness for REPE roles.

In summary, your plan to move from REIB to REPE is a logical and well-trodden path. Focus on honing your modeling skills, building your network, and gaining as much deal exposure as possible during your time in REIB.

Sources: Military to RE via MBA, Which Fall 2020 MSRE program should I pursue to build towards a REPE or REIB career?, Ask Me Anything: REPE Investment Professional, Real Estate Investment Banking, Career Advice: Family Office (RE Developer) --> MBA --> REPE

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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Previously at Jeff reib. Lateralled to a MM REPE and then to a MF REPE.

This is in London, but presume similar at NYC. Would say that REPE is generally less hung up on getting IB people. They typically take people with direct experience like other smaller repe, engineers, brokers (CBRE and the like), real estate companies (asset management, reits) so you get a variety of backgrounds. Reib doesn't really stand out in particular.

Would say that as you climb up the fund size ladder to MF REPE, they start to get more hung up on top IB experience (blackstone, Brookfield, starwood are prime examples, other shops in the top 10-20 list are also like that).

Generally I feel the skills that transfer over are mainly modelling skills and project management skills. Some real estate fund managementals (nuances of Capex, design, engineering) you will definitely lack, but can be learnt. This is also why repe shops like the CBRE people as they are real estate specialists who knows everything from leasing to capex

 

Thanks. Do you think it matters that before getting my job in IB I was pretty much only focused on RE at the asset level, as in REPE type stuff? Will they look at me as a better candidate?

 

In that case yes. I interned at a RE credit shops before starting full time reib. Definitely helped.

Asset level knowledge is more valuable than platform level knowledge, as most IB folks don't know them but it's the bread and butter of repe (outside of MF)

 

What about BB CRE lending analysts? Are they seen as a level below REIB analysts when recruiting for MF or even MM REPE or Debt funds?

 

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