Currently a REPE analyst at a large institutional investors doing direct acquisitions across multifamily and logistics sectors. My team is seeing some opportunity, but not nearly as profitable or lucrative as it was pre inflation and rate hikes. There is generally optimism in the economic outlook, however risk free rates have normalized and won’t be coming down to the ZIRP levels.
With that being said, I’m starting to take notice the number of private / RE credit funds being raised with the expectation that transaction volume is on an upward trajectory and base rates are attractive. Is the credit / debt side the place to be for the next 10+ years or so? I really do enjoy the capital markets and deal structuring side of things much more than asset-level property operations related work that comes with equity, thoughts on making a move to the lending side to improve overall career trajectory in terms of opportunity, comp and mobility? Idk but it seems like the low interest rates post GFC was a big reason why RE equity kept killing it / while debt was making subpar returns …
Based on the most helpful WSO content, here are some insights regarding your query about transitioning from REPE to RE Credit:
Current Market Conditions:
Career Trajectory in RE Credit:
Market Dynamics:
Long-Term Outlook:
Personal Preferences:
In summary, considering the current economic conditions and your personal preferences, moving to the lending side could be a strategic decision to enhance your career trajectory, compensation, and mobility in the real estate sector.
Sources: Career Path Starting as Credit Analyst, CRE Lending Exit Opps?, Real Estate Debt- Are Capital Markets Still Frozen?, Coronavirus impact on credit funds, Best Places to Start in CRE
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