Stay at current job for potential upside or take new offer for 70% increase?
This is my current situation. Work at a mid sized GP, mainly doing leasing and acquisitions, and received offer from a big bank doing balance sheet lending.
Pay at GP is low (very entry level salary with small bonus) and upside probably won't come for another few years. The deal guys are all commission/finders fees for both acquisitions and leasing, and that is what I would evolve into. (I believe the really experienced seniors can get some equity in acquisitions but that wouldn't come for years). Moreover, the senior deal guys here make bank ($300-$700k), while the younger guys make $100-200k. My end goal is working for a small-mid sized repe or debt fund doing acquisitions, but would also consider an acquisitions role at another GP/operator.
Would the balance sheet lending be a stupid detour to take for a few years, or is it worth the 70% increase and different experience? I don't do much underwriting at the GP, which may be another factor but I have amazing experience with "getting out in the field". Also, is balance sheet lending analyst to an associate at repe funds and debt funds a reasonable path? From previous threads on here, it seems so, but I'm still very unsure.
This is just me, why not recruit for the small-mid-sized REPE firm now that would pay likely the same if not more than the bank offer? Market seems pretty hot right now for analysts/associates. Seems like you have necessary experience already to be a competitive candidate.
I agree with this strategy and have been trying to do this as well. However, my hit rate hasn't been too good; I think recruiters see heavy leasing experience, and ding me for it, despite my acquisition experience. I also don't have much modeling and underwriting experience which may be another ding. Not sure why all these companies care so much about modeling, when most of the time it's simple plugging and chugging; I think the sourcing and relationship management is way more important. At the same time, maybe my non target background hurts me, who the fuck knows. But nonetheless, I was thinking the "analytical" experience from balance sheet lending could parlay nicely with my current experience into a repe fund role. Just so indecisive on if I want to wait out for a direct role into repe or take this offer now.
Also, my all in pay would likely be a 100% increase with the new offer, which makes this decision a lot tougher.
Can't pay for food with potential.
It sounds like you don't do much underwriting now, as you said. From my experience there are two kinds of shops, more smile and dial acquisition firms, and firms that look to grow talent by promoting from the analyst/associate pool. Not that you can't make money the way your firm does it. BUT, you are missing out on a huge learning experience not underwriting deals.
Most MM-Inst GP's would require an excel test, and if your modeling/underwriting is not up to par you would likely not get the job/pass that test.
My gut, on the limited information, is to take the big bank job, with a big brand name and learn there for 2-3 years. After that, while you are still an analyst or associate it would be easy to lateral.
My only question is what type of real estate lending does the bank do?
Thanks, my gut feeling is leaning that direction as well.
It would be balance sheet lending across all major asset classes; primarily 5, 7, & 10 year term loans for partially and fully stabilized projects, and construction loans. Maybe some syndicated loan and cmbs work as well.
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