What Is Your Backup Plan?

Last fund deployed all during peak COVID pricing. 1 cofounder left to go chase retail money, other co founder is retiring in 3-4 years.

Fundraising has been impossible and at some point fees will step down from prior fund. 

For anyone in a similar seat, what is your backup plan with every firm being in a similar scenario? Are you thinking try to pivot to non-CRE role and if so, what kind? I’m nervous about not having great transferable skills to corp dev or fp&a as an example 

10 Comments
 

Larry - take this post with all due respect because your content on this website is quality and much appreciated, but, I've noticed a handful of posts you have made regarding getting your CFA. Has this family office told you that this potential job is a lock if you get past Level 2 or attain your Charter, or do you just believe the CFA can help you make a jump? 

If it's the latter, I'd be cautious. I thought the same thing before pursuing the CFA and earning the Charter, but the reality—at least in my experience—is that it doesn't open nearly as many doors as you might expect. It's still a valuable credential that people like seeing on a resume, but it's also a major time commitment (especially Level II). Just wanted to share my perspective from someone who's gone down that path.

 

IRR you ready to rumble

Run a small business in a beach town and be content with making $250k in a VLCOL environment where I can golf and surf whenever I want. Fuck, that sounds kinda good actually.

This

Commercial Real Estate Developer
 
Most Helpful

Reminds me of the billionaire and fisherman story

A billionaire was vacationing in a small coastal village when he noticed a fisherman returning early in the day with several beautiful fish.

The billionaire asked, "Why are you done so early?"

The fisherman smiled. "I've caught enough fish to provide for my family today."

The billionaire said, "Why don't you stay out longer and catch more?"

"What would I do with the extra fish?" asked the fisherman.

"You'd sell them, make more money, buy a bigger boat, hire employees, and eventually own a fleet of fishing boats."

The fisherman asked, "Then what?"

"You'd become very wealthy. You could build a company, sell it for millions—or even billions—and retire."

The fisherman smiled again. "Then what?"

"Then," said the billionaire, "you could move to a quiet seaside village, spend your mornings fishing, your afternoons relaxing, your evenings with your family and friends, and enjoy life."

The fisherman looked at him and replied:

"Isn't that what I'm already doing?"

Array
 

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