REGAL IB to REPE
I was wondering if doing real estate investment banking is a good strategy to break into real estate private equity. I’ve heard from some people that’s it’s not a good strategy because the work you do is very different. Was curious to hear if anyone had any insights into laterals from REGAL groups.
REIB is great for breaking into REPE but isn't the only way. Many people in REIB stay there because the pay is so good and only MF REPE pays REIB levels (other funds pay MUCH less). In this very poor hiring market, there are more Analyst seats in REIB than MF/UMM REPE, so it's a good bet to recruit for both REIB and REPE.
Yes REIB work is different than REPE, but funds like BX/Brookfield/etc like REIB experience because they do REIT take-privates where IB knowledge comes in handy. Overall, hiring market is extremely bad for both so it's good to cast a wide net.
Based on the most helpful WSO content, transitioning from Real Estate Investment Banking (REIB) to Real Estate Private Equity (REPE) is a well-trodden path and can be a strong strategy. REIB provides a solid foundation in financial modeling, deal structuring, and transaction experience, which are highly relevant to REPE roles. However, there are some nuances to consider:
Skill Overlap: While REIB focuses on transactions like M&A, ECM, and DCM for real estate companies, REPE emphasizes asset-level underwriting, acquisitions, and portfolio management. The skill sets are complementary but not identical. To bridge the gap, gaining experience in real estate-specific modeling (e.g., Argus) and understanding asset-level details is crucial.
Networking: Many professionals in REPE value passion for real estate and a demonstrated interest in the asset class. Networking within the real estate community and showcasing your enthusiasm can significantly improve your chances.
Exit Opportunities: REIB is a common feeder into REPE, especially for acquisitions roles. The transaction experience and exposure to real estate markets make it easier to transition compared to other banking groups.
Preparation: To make the lateral move smoother, consider taking real estate modeling courses or certifications (e.g., Argus training) and tailoring your resume to highlight relevant real estate experience.
In summary, while the work in REIB and REPE has differences, the transition is feasible and often successful with the right preparation and focus on real estate-specific skills.
Sources: Switching from Big 4 to Acquisitions: My Story, https://www.wallstreetoasis.com/forum/real-estate/real-estate-private-equity-acquisitions-vs-mm-investment-banking?customgpt=1, Building Personal Real Estate Portfolio, From Private Equity Associate to VP in Private Equity, Is BCG a viable path to Private Equity?
Just want to make the quick distinction between REGAL which is more traditional m&a and REIB which is what most banks call their balance sheet lending arms. Have seen people from both jump to the buy side.
Traditional IB experience is almost never bad, REIB is a good place to get reps, though you might get paid a little less but have better WLB.
Great point here.
I came over to RE from IB doing lev fin at bofa.
Worth the move? How's it going? I'm trying to do the opposite.
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