Special Situation Groups at BBs
Hey everyone
I am currently a rising Junior at university, and looking to enter the real estate field next summer. I'm very interested in the debt side and I've had some calls with alumni at different banks doing commercial real estate finance. One suggested that, due to the downturn in the economy, I should contact people on 'special situations' teams at banks. I've done some research on WSO, yet most of it seems to be about S+T rather than CRE. Nonetheless, I am extremely interested, and from what I've read it is very fascinating.
Would you guys be able to shed some light on what these special situations teams do at BB banks? How prestigious is this compared to traditional BB lending? Is it possible to break in straight from undergrad? What kind of exit opportunities does this provide?
Thanks guys.
I‘d echo that. There is some info on WSO and online about the distressed/special situations S&T desks on the street, if you can find it. Some banks are known to absolutely dominate in the space (DB, Citi, Barclays, BAML) – but distressed is a more murky part of the market where info is slim and the best trades are the ones you never hear about. It’s more of an investor-like or trader seat depending how you funnel into the desk. Each bank is different, but given the macro backdrop, the distressed and broader restructuring space will continue to be interesting for many years to come. Since you’re in the secondary market on the S&T side for corporate debt, you’re typically not lending balance sheet the same way primary in CRE would be. Certainly prestigious and unbelievably rare to begin your career in this space.
There are some CRE Special Situations desks that are more distressed focused, won’t pretend like I understand the space but to my knowledge it’s just lending balance sheet for fat coupons where situations are challenged. I’ve heard JPM/DB are massive here but don’t quote me on that.