Structuring vs Flow
Hi all,
I have received an offer for either structuring or flow at MS in London.
I'm not well versed at all in terms of the potential career path or exit opps, WLB... really anything and would love to hear your insights in what you all think is the better path.
I hope that at some point in the future I will be able to work in a Hedge Fund and so am leaning towards structuring (although I have not been told in which specific area it would be in) but also understand that flow is very strong at MS
Would love to hear your thoughts on the pros and cons of each
Thank you in advance
Based on the most helpful WSO content, here are some insights on the pros and cons of different roles in Real Estate Finance, which might help you draw parallels to your situation:
Pros and Cons of Different Roles in Real Estate Finance
Owner-Operator with Multiple PE Fund Series
Pros: - Comprehensive understanding of the deal process from start to finish. - Experience in formulating value-add business plans and direct acquisitions on stabilized, high-yield properties. - Versatility to work for a GP developer or an LP-side investor. - Great starting salary and bonus potential.
Cons: - Significant time spent dealing with lawyers, bureaucrats, and environmental consultants. - Leasing and property management work can be tedious. - The operating side is more granular than the ownership side.
Debt Side at Mid-Size and Large Banks
Pros: - High deal flow exposure, reviewing one or two new deals daily. - Builds experiences, stories, and relationships. - Diverse deal exposure across product types and geographies, enhancing interview prospects for various roles (e.g., corporate real estate, data center REITs, hospitality).
Cons: - Limited upside in pay compared to development and REPE.
Small Real Estate Development Shop
Pros: - Flexible lifestyle with autonomy over work environment and schedule. - Exposure to a variety of deal components (underwriting, due diligence, design, financing, etc.). - Intellectual challenge and decision-making responsibility. - Good compensation with potential for promote upside.
Cons: - Cyclical hours with periods of intense work. - Administrative tasks can be overwhelming. - High stress due to career trajectory responsibility.
General Advice on Career Paths and Work-Life Balance
Conclusion
For your specific situation at MS in London, consider the following: - Structuring: Likely aligns with your goal of working in a Hedge Fund due to the analytical and complex nature of the work. - Flow: Offers strong deal flow and relationship-building opportunities, which are valuable for career growth.
Evaluate your long-term career goals, work-life balance preferences, and the specific nature of the roles offered to make an informed decision.
Sources: https://www.wallstreetoasis.com/forum/real-estate/lets-talk-about-the-pros-and-cons-of-our-gigs-in-re-finance?customgpt=1, Let's Talk About the Pros and Cons of our Gigs in RE Finance, Losing "The Edge" Post-IB, Work/Life Balance - Hours, Advice from people who left?
Flow would be much more conducive to HF exit opps imo (depending on specific desk/asset class ofc)
I see. Could you explain why?
Structuring is an inherently sell-side function. At least in flow you are closer to market and likely hedge fund clients ..
Thank you
Hey is this in response to the placement year or is it a summer?
Bump, would like to know
My advice would be to go with (the) flow all day everyday. What HFs want from a sell-side potential recruit is for him or her to have already owned some risks (and preferably some directional risk on a product that say HF is trading), this is definitely not the case with structuring.
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