Starting directly from REPE could be risky?
Student from a Target European university currently applying for Summer Internship in London. I am targeting IB and REPE programs with a bigger interest in REPE because genuinely interested in the topic, have some relevant experience, better hours (?) and maybe less competition meaning more possibilities to end at MF/big Asset Managers in the short term. But I was wondering if it could be dangerous to specialize immediately in RE, seeing it as an isolated path with less to zero possibilities to change to other industries. Should I focus more on general IB stuff in order to keep more doors open?
Based on the most helpful WSO content, here are some insights regarding your situation:
Specializing in REPE vs. General IB
Pros of Starting in REPE: - Interest and Experience: If you have a genuine interest in REPE and relevant experience, this could make your work more enjoyable and fulfilling. - Work-Life Balance: REPE is often perceived to have better work-life balance compared to IB. - Less Competition: There might be less competition in REPE, potentially increasing your chances of landing a position at a major firm or asset manager.
Cons of Specializing in REPE: - Limited Flexibility: Specializing in REPE early on can pigeonhole you into the real estate sector. Transitioning to other industries might be challenging due to the specific skill set developed in REPE. - Niche Market: The skills and knowledge gained in REPE are highly specialized and may not be as transferable to other sectors like general IB, consulting, or corporate finance.
General IB for Broader Opportunities
Pros of Starting in General IB: - Broader Skill Set: General IB provides a wider range of skills and experiences, making it easier to transition to various sectors within finance or even other industries. - Optionality: Starting in IB keeps more doors open for future career moves, whether you decide to stay in finance or explore other fields. - Brand Recognition: Working in a top IB firm can enhance your resume and provide a strong network, which can be beneficial for future career opportunities.
Cons of Starting in General IB: - Work-Life Balance: IB is known for its demanding hours and high-pressure environment, which might not align with your personal preferences. - Cutthroat Environment: The competition in IB can be intense, and the path to advancement is often highly competitive.
Recommendations
Conclusion
While starting directly in REPE has its advantages, it also comes with the risk of limiting your career flexibility. If keeping more doors open is a priority, focusing on general IB might be a safer bet. However, if your passion for real estate outweighs these concerns, pursuing a career in REPE could be highly rewarding.
Good luck with your applications and future career!
Sources: Anyone start in RE and end up leaving for another industry?, Which Fall 2020 MSRE program should I pursue to build towards a REPE or REIB career?, Blackstone RE vs top IB as first job, Career Advice: Family Office (RE Developer) --> MBA --> REPE, How Would You “re-do” Your RE Job Hunt?
General IB all the way - I did an MF REPE SA in LDN, didn't convert, and got burned for FT recruiting. Ended up having to do an IB internship anyway.
It comes down to do you want to be in real estate or not.
If so, then it is much better to start in real estate private equity. If not, or you’re unsure, it is probably better to not start there.
Hard question.
I work in RE and some of the smartest ppl I've met ended up quite randomly in the industry (e.g. they didn't get IB internship or got tired of IB, they tried RE because it was "buy side" and they ended up liking it a lot). If you have a strong interest in RE give it a try.
I'd say to apply to both IB and RE and see what happens. Also don't be so negative towards RE closing you options, especially at such a junior step of your career. What do you think stands out most in your CV? A summer in Apollo's RE team or a summer in [Lincoln/Alantra]'s IB teams?
P.s. regarding the hours in REPE in London.... They can be easily as bad as IB hours.
Do you have any more insight into REPE hours in London?
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