Why are banks so slept on in RE?
Why do people sleep on some of the investment management arms at banks when it comes to real estate? As a first year analyst at GSAM/MSREI/JPMAM, your making 150k, working pretty good hours, and getting exposure to all risk spectrums and asset classes. All I see is kids thirsty for REPE, but are they missing the holy grail of banks?
I think people perceive the banks funds as lower on the risk spectrum, more vanilla, less discretion type stuff. Kids want balls to the walls full discretion repe funds that do crazy shit. Little do they know maybe like 10-20% of repe funds of meaningful size have full discretion to invest in high risk high reward type stuff with little to no oversight from the LPAC.
Are they slept on? I don’t think I’ve read anything particularly bad about them on WSO. Top notch firms/teams with exit ops to anywhere else in the industry.
Even the lending arms of GS/MS/JPM can land you ”elite” REPE jobs.
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OP Here - When I say slept on I mean barely mentioned, not so much hated on. I’ve been on this forum for over a year and really all I see is REPE or Development. It’s not a bad thing, I’m just curious why people aren’t vying for more spots at BB IM’s given the culture, comp and hours
They are not slept on whatsoever, this is WALL STREET oasis!
You are aware this site was made for investment banking and PE? That Wall Street reference is far from referencing real estate lmfao
Lighten up hardo
This is a stupid thread. It’s still REPE. The parent company just happens to be a bank.
OP here - I work at a lifeco but trying to switch to a bank. No need to assume pussy
Isn’t Goldman a balance sheet investor? Is that still “REPE” genuinely curious
They manage billions of third party capital. I doubt they do much on their balance sheet
Well I know for sure in real estate it’s balance sheet, but they are looking to get third party capital. Have two friends who are associates there
They have billions in third party capital dedicated to real estate, like I already said. see links below
Also hilarious, that you asked me a question, which I answered correctly, only for you say “actually you’re wrong, I know for sure it’s balance sheet Capital”. Gen z is going to destroy the work force I swear to god
https://therealdeal.com/2020/05/21/goldman-sachs-to-juice-cash-strapped-real-estate-owners-with-3b-fund/amp/
https://www.businesswire.com/news/home/20180118006172/en/Goldman-Sachs-Merchant-Banking-Division-Raises-6.7-Billion-for-Broad-Street-Real-Estate-Credit-Partners-III
https://www.wsj.com/amp/articles/goldman-tries-to-exorcise-ghost-of-real-estate-past-with-new-fund-11564484400
The answer is that they have both. Historically, the merchant bank (MBD) and GSAM (asset management) has been 3rd party capital, and SSG (special situations) as well as REFG (real estate financing group) have been balance sheet. all have invested in real estate.
Personally would prefer a non-bank RE shop, and again preferably a private one, because red tape and reporting drives me i.n.s.a.n.e.
Would you rather work at W&D or Cap One CRE lending?
Neither
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