Principal Real Estate Investors.... is it top tier?

Currently interviewing for a role at Principal within their real estate investment arm. I was surprised to learn that they are ranked #10 for the largest real estate investment managers, based on AUM. The report I am referencing is below (as of 12/31/2019, so a bit dated). The firm itself claims that it is top 10.

https://irei.com/wp-content/uploads/2020/09/2020_…

I never knew they were this large and successful. They are ranked ahead of other brand names, such as PGIM, Invesco Real Estate, JPM Real Estate, etc

So, are they considered an elite real estate investment manager? The numbers tell me yes, but I haven't heard much about them so I wanted to know what the consensus was regarding Principal. 

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Comments (9)

May 2, 2021 - 7:42am

Prospect in IB - Gen

Currently interviewing for a role at Principal within their real estate investment arm. I was surprised to learn that they are ranked #10 for the largest real estate investment managers, based on AUM. The report I am referencing is below (as of 12/31/2019, so a bit dated). The firm itself claims that it is top 10.

https://irei.com/wp-content/uploads/2020/09/2020_…

I never knew they were this large and successful. They are ranked ahead of other brand names, such as PGIM, Invesco Real Estate, JPM Real Estate, etc

So, are they considered an elite real estate investment manager? The numbers tell me yes, but I haven't heard much about them so I wanted to know what the consensus was regarding Principal. 

Does it particularly matter if they are elite or not? Are you an "elite" candidate?

What matters is their track record, not how elite they are 

May 2, 2021 - 9:24am

They a very well known, been in the real estate business forever. Not sure how you define "elite" or "top tier", or even what that means in trying to compare real estate investment management firms, but they are one of the large mega groups in terms of AUM, breadth and depth of strategies, etc. 

Would be a great place to get a job for sure. 

  • Analyst 1 in PE - Other
May 2, 2021 - 10:34am

If you are throwing out the words "top tier" and "elite", then no they are not that. Companies that would supposedly fit those categories would be Blackstone/Starwood/Hines/Related, which are opportunistic private equity firms or mega developers. Principal mostly handles real estate investments on behalf of its insurance arm, so mostly core deals which is not as interesting as the deals you'd be looking at the shops I listed. But Principal still is a good shop with a large AUM given it is investing on behalf of insurance money. 

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May 2, 2021 - 10:39am

If you are throwing out the words "top tier" and "elite", then no they are not that. Companies that would supposedly fit those categories would be Blackstone/Starwood/Hines/Related, which are opportunistic private equity firms or mega developers.

^this is a very inaccurate description of the firms above, bad mixing of fund strategy/type with firm type. As to the concept of "top tier" and "elite" the only place that discussion is had is basically places like WSO and UG classrooms, these concepts have little/no value within the industry.

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