Start Institutional or Entrepreneurial?
Looking at offers and am deciding whether I should start institutional or in an entrepreneurial firm. Role in the entrepreneurial firm is on the equity side and institutional is placing debt, both multifamily.
Thoughts?
can you give a few more parameters on both of these firms? Like size (AUM), age, number of employees, source/type of capital, etc. for the "entrepreneurial" firm. And perhaps firm like (CBRE/JLL/Eastdil) for the "institutional" one? this is a legit question for sure, just what you are describing leaves way too much to the imagination to make a good response.
Entrepreneurial shop has been around about 20 years and is growing, owns over 10,000 units. Lending side is agency lending at a reputable LifeCo, so a very structured, corporate environment. At this point I am thinking about exit opps because they are very similar roles but on opposite ends of the spectrum. LifeCo I would be working underneath a top 10 producer but I feel like I would get very bored plugging and chugging into a corporate model.
How much would name brand come into play here? I value the experience I would gain on the equity side but the name brand for the debt side.
Equity side partners with institutional capital sources more often than mom and pop FWIW
Glad I asked.... I was not thinking a 20 year old firm with 10k units when you said "entrepreneurial"... that's a very established firm!
TBH.... I don't see a clear/obvious winner here. Any firm as established as the "entrepreneurial shop" probably has enough brand equity to work just fine as a place to start. The "reputable LifeCo" clearly has a "brand advantage", but I have to say..... that is super far down the list of things that matter. If you rather go the "equity" side and find that more interesting, I'd probably be taking that and not looking back. The debt job is also a great one to start with or even have a long-career. BUT... it kinda sounds like you may want to jump from the "LifeCo" to the "Entrepreneurial shop" sometime in the future... if that is the case... might as well go direct.
Will say, debt side of a LifeCo would teach a lot, probably see good deal flow, and open up a lot of worlds if you wanted. So, if you want to max optionality and flexibility, I could see a good argument for taking that role. IF the other job is really more want you want, you feel a good overall opportunity, then take it. Taking a job for "exit ops" when the "exit op" has been offered doesn't make much sense imho.
IMO depends on what you want to do long-term assuming both are quality shops. What are your end goals and personality type?
Institutional roles attract a much different type of person in my experience than entrepreneurial shops. You get the more corporate/top MBA type who are career men and like the corporate vibe and more "polished" process. Entrepreneurial shops tend to be more wild west/good old boy type environments that have a much more agile approach to deal making.
If both are strong shops I think it comes down to goals and the type of environment you want to work in. Early in your career you can always lateral from one to the other as well, so another note would be go to the better name if its that tough of a decision for you.h
Would you rather be on the debt or equity side? Are you the kind of person who thrives when left to their own devices, or does structure help? What kind of experience/knowledge do you have? Where are the companies located?
At the end of the day, any job in this industry is a good one and will eventually give you a chance to lateral, but it's going to come down to personal choice. If you are asking for a pros and cons list for each firm, you need to provide a lot more information. Yeah, working at a small up and coming shop may lead to more responsibility and more interesting work, but it also might collapse in a couple years and then you've got to move again.
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