Undergrad → RE Banking → REPE?
Hi everybody! I'm currently a junior studying at a semi-target school. My long term career goal is to end up in acquisitions for an REPE shop. Would it be better for me to accept an offer for a junior year summer internship with a real estate banking group in a BB/IBAB (e.g., WF, JPM, BofA) and then recruit full-time for REPE once I graduate or take an REPE internship at a smaller firm (e.g., Centersquare, Stockbridge, Cabot) for this summer?
I'm getting mixed feelings because some people tell me to take the BB/IBAB offer to get the name on my resume while others say that REPE is harder to break into and an REPE internship would be more relevant than a REB internship if REPE acquisitions was my end goal.
What do you all think I should do? Thanks for your help! :)
So... until you actually have one or both offer in hand, I wouldn't stress this. That said, for SAs I'd generally say go with the one that offers best chance of FT offer, but I guess if you don't want to work in REIB, that may not make as much sense. So, if you want/willing to work in REIB out of UG, then probably go that route (I'd guess better chance of FT offer, but that can vary a lot firm to firm tbh). If only doing REIB internship for the "resume" purpose..... and get offered a buyside internship... I'd prob go that route.
In all reality, having a legit internship is more important than what/where it is. The idea that the "name brand" of where you SA is highly overrated IMHO, but it is something. Internships give an edge over someone who didn't do one, but trust me, they don't make you an "experienced" hire in any sense of the word. I guess bottom line... don't stress this, it will not really determine your career path is actually far less relevant than you are thinking.
Hi redever, I greatly appreciate your advice! The offer I got was for an internship in commercial real estate banking at a BB, not real estate investment banking. Does that make any difference on whether I should choose this internship or an internship for a $10-$30 billion AUM REPE firm? Thanks!
So.... with that extra detail...
- IF you seriously want/considering a career in commercial banking (a good place to start imho), and you like this bank, would seriously want a FT offer, etc... then maybe worth taking for sure
- BUT... a legit buyside internship seems like a no-brainer in the overall context you present and tbh, you can still recruit and have good chance of getting a commercial banking gig without the internship, but the buyside internship may help you get a better gig otherwise.
So, if it were me, I'd aim for the buyside role personally.
Hi! The offer I got was for an internship with the real estate banking group of a BB where you do lending for commercial real estate investors, not real estate investment banking. If you have any knowledge about it, what are the exit opportunities with commercial real estate banking/lending? Does this make any difference on whether I should choose the BB REB internship or a $10-$30 billion AUM REPE internship? Thanks! :))
When you say real estate banking, are you talking about real estate investment banking or literally real estate banking where you cover a few clients and do bitch work all day? If it’s real estate investment banking, it will set you up better than the summer internship if your goal is to land at a large PE fund. If it’s real estate banking as I described, which normally sits in the commercial bank instead of the investment bank, take the other internship.
It’s commercial real estate banking where you lend to commercial real estate investors, not real estate investment banking. Is there a specific reason why interning at a $10-$30 billion AUM real estate private equity firm would be preferable over real estate banking at a BB for my long term career goal of doing acquisitions in a REPE firm? Thanks for your help! :)
Because you aren’t modeling or learning anything about real estate in REB. Sure you have a BB “brand name” but so do accountants who work at BBs. The REPE interview sets you up to learn the business and quite frankly will help you speak more intelligently in interviews if you don’t convert to FT. The bar has been raised in interviews for first years so that will help you be better prepped
REB at a bank like Wells/JPM/BofA is as good as any place to start a career in real estate finance (with the exception of something like Blackstone). Unless the REPE job is at a place like Blackstone, I think you'd be better off with the big bank REB experience on the resume than REPE at a small/no-name shop.
I appreciate the advice bands_bands_bands! Are there any specific reasons that make you think that an summer internship in REB (CRE Lending) at a BB will be more beneficial to my long-term career goals as opposed to a $10b-$30b AUM REPE shop? Moreover, does your point with REB at a BB/IBAB being a better start still hold for REB at JPM or BofA? Thanks in advance! :)
If your end goal is to work somewhere like Blackstone or Ares, you're probably better off with experience at one of the largest lenders in the space (who provides debt for the deals/funds large REPE are involved in) than a smaller REPE firm. It's like asking if you should do ib at a large bank or pe at a MM fund if your end goal is to be at a MF PE firm.
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