Shifting Careers to Brokerage
Just officially accepted an offer as a DSF Analyst at one of the top brokerage firms, so I'm pretty pumped about it. I was previously in Lending, which was boring as hell, so this feels like a solid step up.
I've got a couple of weeks before I start and want to use the time wisely to prepare. Since I'm coming in at a senior analyst, there won't be much formal training. I did well enough on the case study that they're expecting me to hit the ground running, which is great but also means I need to make sure I'm not walking in blind.
I'll mainly be covering Industrial, with what I'm guessing is about 70% Data Centers and 30% other asset classes. Data centers are obviously a hot space right now, so I'm looking forward to getting into it.
For anyone who's worked in DSF or covered data centers specifically, I'd really appreciate any insights. What should I expect day to day? Any common mistakes new analysts make that I should avoid? Are there any books, reports, or online resources you'd recommend to get up to speed quickly? Even just general advice on the transition from lending to brokerage would be helpful.
Never did any Data center deals at the current firm lol.
Congratulations on the new role! Based on the most helpful WSO content, here’s how you can prepare and excel in your transition to a DSF Analyst role, especially with a focus on industrial and data centers:
1. Day-to-Day Expectations in DSF
2. Common Mistakes to Avoid
3. Resources to Get Up to Speed
4. Transitioning from Lending to Brokerage
5. Data Center-Specific Advice
6. Final Tips
You’re stepping into an exciting and dynamic role—best of luck! If you have more specific questions, feel free to ask.
Sources: Debt and Structured Finance Brokerage Exit Opps, Goldman Sachs SLC IBD Overview, Navigating The Floor: A S&T Analyst's Guide, Navigating The Floor: A S&T Analyst's Guide
I hate to break it to you, but your job will probably be very similar to your lending role - just on the other side of the table. You’ll be responding to diligence questions instead of asking them. You’ll be reviewing the underwriting and update the underwriting, just like in lending for a sponsor. Except this time the sponsor / borrower is your client. You’ll be assisting with market analysis and pulling comps when the appraiser needs it.
As you move up - that’s where the job will change. It’ll be more relationship driven and less analysis. Lending is relationship driven too but you’ll always need the analysis. As you move up on the broker side, you’ll have to look at and explain numbers - but it becomes less in the weeds. The only real addition to your job as a broker will be you’ll probably be doing market coverage - as in speaking with lenders about rates, appetite, etc that they are able to get done right now for investment opportunities. Granted, you do this as a lender too. You’re just covering clients / potential clients to see how you can assist them with their lending needs and bidding on opportunities. As a broker - it’s the same thing except you’re pitching for opportunities. So you’ll probably be making pitch decks up the wazoo too.
The only way the job won’t be similar is if you step right into a production role. But it doesn’t sound like that’s the job you took. Production will be all business development - essentially the step above analyst / associate / VP in a team environment.
Really appreciate the brief. Yeah, the main reason I took this job was because I want to work on a lot more deals and just build the acumen. Volume is everything at this stage. Eventually I'd like to find an exit on the principal side, but for now I just want to learn, get reps in, and get really good at this type of work. The more deal flow I see, the sharper I'll be when that opportunity comes.
The reason I said my lending role felt boring is because I would rarely see any real action. Deals would come across, sure, but maybe 1-3 a month, and then only if it checked all the boxes after sizing up the loan did we actually get to work on it. So much of the job was just screening things out. It felt like I was sitting on the sidelines more than I was actually in the game. At least on the broker side, even if the work itself is similar, I figure I'll be touching way more product and seeing how different lenders think about the same deal. That exposure alone feels worth it right now.
Only one of the big firms has a "DSF" department, lol.
Nonetheless, great firm, great reputation, and it can springboard you to great opportunities (like owning your own firm) if you put in a solid 5-7 years.
Best of luck!
Can't be putting me on the spot man haha.
Yeah, really excited, hoping to grind hard the next few years.
Thank you brother.
Go big green
Not sure what your current set up will be, but make sure you're dedicated to one team, not part of an analyst pool that works with multiple brokers.
This way you'll build trust with a team way faster and it will be easier to grow your career via the team by stepping into more origination role vs. underwriting.
Also if you want to grow fast get involved with clients asap, own that process. Draft up engagement letters etc instead of the broker having to do it.
Create due diligence check lists and lender updates so your broker can have everything they need when talking with clients
Provide insights like near term base rent step ups that may help.
Brush up on construction financing as well, development proformas and land residuals
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