RE IB/Capital Markets NYC
Would love to gain some insight on some of the top niche RE groups to come into as an analyst in NYC specifically. I've heard things all across the table... certain REGAL groups, capital markets, etc. Would ideally be looking for a spot with good deal flow, analyst training, and exit opps. Would ideally be looking to go into RE PE after a few years.
Top REGAL groups include MS, Goldman, Citi, Barclays, and JPM. Similar list for the lending/capital markets side of the equation. All have different cultures and areas of strength. You'll spend a lot more time on pitch books and general research in REGAL, whereas in lending/capital markets it's a bit more hands on with sponsors on a deal-by-deal basis and generally closer to the real estate.
Depends on whether you want to do asset level or entity level RE PE, and whether you have a strong preference on type of firm you'd like to eventually work at. Some thoughts:
- If you're more focused on asset level RE PE, you can skip the BB IB REGAL groups altogether. I started my finance career in one of them and it's completely unnecessary if you later want to do acquisitions/development. The only thing they are good for in that context is you'll gain some pedigree, gain some polish, learn the fundamentals of good formatting, how to crank of reliable work product, etc. And those can be valuable experiences to have for a wide variety of exit options, but they come at the cost of just going straight into a more direct career path that leads to what you're looking for.
- If, however, you want to do entity level investing, then the reverse holds true. A path that trains you well for asset level investing won't generally be sufficient (although having both asset level AND entity level experience makes you a lot better at entity level investing, in my experience) and going to a REGAL group could be a good move.
- Also, if you want to maximize your chances of working at a mega fund, you've got to go the REGAL path, even if you're going to just do mostly asset level investing there, simply because of the way recruiting works. Bear in mind that in RE, there are lots of unknown shops where you will make a fortune compared to working at Blackstone or Starwood so really depends on whether "prestige" matters to you.
In terms of some specific options for shops to target:
- I'm not sure if they still offer this, but MS used to rotate their RE IB juniors through both the advisory side of the business as well as the principal investing side. If they still offer this, I would definitely shortlist MS because that's a very unique experience that would help you to straddle the line of demarcation I outlined above. Otherwise, the other usual suspects like JPM/BAML/Citi/WF et al. Bear in mind that the work at the balance sheet driven BB REGAL groups tends to be very capital markets and REIT focused.
- You could also try private capital advisory groups like Evercore/Lazard/PJT Partners et al. They're more focused on equity placement, but also do some M&A, programmatic joint ventures, etc. which you won't get exposure to at most of the BB firms, which may be either a pro or a con for you.
- Lastly, you could try the shops more focused on the real estate. Think groups like Eastdil Secured, Ackman-Ziff, JLL/HFF, et al. If you want to go more asset based but still get trained at a "real" shop, these would be more appropriate choices.
What types of opportunities does the private placement side of the business provide?
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