Small PE
I have an offer to work as analyst in 6 man PE shop with 0.5-1 billion AUM. The shop focuses on a very specific asset class and tries to stay under the radar (no formal website) since they outsource all their operating and back office.
Do you think it will be difficult to receive an exit opportunity to a more established/well known shop?
Because they don't have a website? No. Plenty of funds stay under the radar.
Hi CRE thanks for the response, my concern was if I ever tried to get a job at another shop it may be difficult because they are very under the radar and it would be hard to get passed HR without a "shiny name".
This is what an interview is for where you can talk about your experience.
passed? You won't get past anyone
Depends on your end game.
How so?
I am not really sure of my end game. I am just hoping to learn as much as possible and keep my options open.
If this shop is going to let you co-invest and promote down the road. I think it might be a better route. Also, depends on the responsibilities they give you. If the smaller shop is reputable in your area then I think you should go with them.
The shop would give me a ton of responsibility which is no doubt why I think I will learn a lot, but it is only 2-3 years old. The unique scenario is though; it is associated with a much more established company that has a much bigger multi-asset portfolio, but still not a big brand that you would know.
Don't fall for the brand. Unless it's like Blackstone, Oaktree, and the likes. Go with the smaller firm where you will get more responsibilities and learn more. Since it is lean and young, you might have the opportunity to climb the ranks in 8 years.
Quick question - how did you go about recruiting for small shops like this? And do you happen to know if the shop you received offer from provide opportunities to invest in their funds at a lower threshold?
No one cares about the brand in real estate. Learn a marketable skill, have a deal or two that you worked on start to finish, and you'll be fine. Names only matter in industries where nothing differentiates two junior employees, i.e. finance.
Generally speaking, the larger/more established shops know all those active in their markets. RE is so incestuous, and as long as you're in large to mid sized market, I doubt you'll have any trouble making a transition.
Mate do be sure it's a solid shop - if it turns out to be a dud with no brand / average returns, recruitment will be an uphill battle
Pro: Decent portfolio size for such a small team Con: Only one asset class (and its a niche)
Additional aspect is that their portfolio is actually not in the country which they are located in.
Their equity partner is also huge, and can be a trump card for any "branding" issues with the firm itself.
Some of the most badass industrial funds to pop up recently are very lean (10-20 ppl) with whoever-STRS money. Less bureaucracy, far more deal flow/participation. Not stuck in a box from an acquisitions standpoint. Won't see the CIO on CNBC, but everyone knows who they are.
Lots of good advice here already. My 2 cents:
Sounds like this is your only option atm, so I'd say take it. I've heard that you should try to get diverse asset class experience when you start out (which I agree w/), but if this is your only/best option to break into REPE and you will (or at least think that you will) get quality experience that you can speak to, it will be worth it. IMO, breaking in to REPE isn't easy, and once you're in it's easier to pivot (take this w/ a grain of a salt if you like, did not have a RE background before jumping into the industry). Plus, as someone currently at a small shop (still very different than most smaller shops as well [single asset class focus but purposely vague here for the sake of anonymity]) I would imagine you'll be heavily leaned on, which will give you great experience & exposure to the nuances of a trx you won't get by just observing from the outside.
Also, keep in mind that networking will play a huge role in any potential pivot. Building a network of people that will go to bat for you at their firm is absolutely easier said than done, but don't discount the value of a strong network. Could a niche asset class make things a bit harder? Sure, but (grain of salt warning again b/c no personal experience w/ this specifically) I'm sure you'll be able to get around it with solid experience, a coherent story, and good networking.
Probably belaboring the point now, but hope this helps.
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