Switch from IS to PM
I currently work as an Analyst in Investment Sales at a high volume team and have been considering moving to Portfolio Management - I think it's closer to my strengths, the hours are better and I'd be able to WFH some days (all things I value).
However, I wanted to get some thoughts on Portfolio Management as a career move.
1. Is there merit to sticking out in IS longer to get into PM at a more senior level? Is it faster to progress up the PM track from the outside coming in via other roles (IS/Acq./Dev.) rather than from within as a PM analyst?
2. I worry PM is a bit of a dead end - do you get pigeonholed into PM roles as you're moving further away from the assets? Is it unwise to make this kind of a career move at a junior level when IS experience is generally more widely sought after?
3. I know PM Analyst pay is generally worse than IS Analyst pay - but I have worked a year in IS now (2 in RE). Should I be targeting a similar pay in a PM role as my IS role (which is roughly market) since I have 1 YOE over what I had when I landed the IS role? Or should I just live with the likelihood of lower pay? On the flip side, is moving from IS to PM such a bad career move (see Q2) that I should only consider it if it is a pay bump (somehow)?
Bump. Interested. Expect lower pay but PM is more stable. No matter what, you service the loan for the life of it unless something else comes up. Low employee turnover overall.
I won't speak for everyone, but hard to get a more senior PM role just from IS, you would need to be at a lender or operator/repe in AM
You don't think a role more senior than PM Analyst is possible from IS or that senior roles in general (Fund Manager/Portfolio Manager) are not possible from a purely IS background?
I would say it would be hard to enter above associate from a purely IS role. With out a stint in AM, PM, Lending, Banking, REPE
Currently a portfolio manager at a balance sheet lender in NYC.
1. Is there merit to sticking out in IS longer to get into PM at a more senior level? Is it faster to progress up the PM track from the outside coming in via other roles (IS/Acq./Dev.) rather than from within as a PM analyst?
Not necessarily, to get into a more senior PM role, you would need sufficient PM/AM experience for sure.
2. I worry PM is a bit of a dead end - do you get pigeonholed into PM roles as you're moving further away from the assets? Is it unwise to make this kind of a career move at a junior level when IS experience is generally more widely sought after?
It depends. At my shop at least, a PM's natural career progression is to become a relationship manager. However, there are PMs with 10+ years of experience that have decided to remain PMs as they value the WLB. So I wouldn't say you are necessarily pigeon-holed into the role, it just depends on your career goals and motivations. Portfolio management is a pretty brain dead role (luckily I also participate in originations) so if you want to do something more "stimulating" like REPE acquisitions, I would say stick with IS. Especially if your team is seeing high volume.
3. I know PM Analyst pay is generally worse than IS Analyst pay - but I have worked a year in IS now (2 in RE). Should I be targeting a similar pay in a PM role as my IS role (which is roughly market) since I have 1 YOE over what I had when I landed the IS role? Or should I just live with the likelihood of lower pay? On the flip side, is moving from IS to PM such a bad career move (see Q2) that I should only consider it if it is a pay bump (somehow)?
Since you have 2 YOE and none in PM/AM, firms will likely view you as junior and will pay you accordingly. If you somehow get a senior PM role, then yes your pay would probably be more than what you earn as a 2nd year analyst. Nevertheless, there's a trade off. Yes you make less, but the work is (generally) less stressful, better WLB, WFH, etc. so you figure out if the salary difference is worth those things and make your decision. As a data point, my firm pays junior PMs $90-100k + 10-50% bonus (NYC) and we work 45-60 hours/week.
Thank you for the detailed response. My IS role is really high volume, one of the top teams in the country. Since the market is slow and we are well staffed, the WLB hasn't been horrendous either (45-60 hours) but I know it will tick up as the market becomes better. So am definitely in a lucrative position right now.
However, I think the IS experience I already have under my belt especially with the team I've been with means the Acq./Dev. options will still be open in the future if PM turns out to be too brain dead. On the other hand, many roles will be gated without AM/PM experience - which makes the switch valuable no matter what I do in the future. That is, of course, if PM isn't so pigeonholey that no Acq./Dev. team will look at me twice.
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