Acquisitions at BX Portfolio Fund - Solid Opportunity?

Hey,

I'm exploring buy side roles at a number of REITs & REOCs. I've come across a few Blackstone owner/operators that have open summer analyst positions in acquisitions (NYC).

I'm slightly concerned in that it's obviously a step down from BX REPE, but would getting deal exposure as a buy side analyst at one of these places be a solid basis for a career in RE?

 

Yes, it will be great experience, especially if you're targeting an internship.

At least you have the awareness that these places are not BX themselves. I worked with people at LivCor who said they worked at BX in casual conversation... Anyways, if you like the culture and the firm has deal flow, I see no reason as to not accept if offered. 

 
Horsi

I'm slightly concerned in that it's obviously a step down from BX REPE, but would getting deal exposure as a buy side analyst at one of these places be a solid basis for a career in RE?

I'm not sure what to make of the above comment... Do you actually believe that firms like BX are the only places to have a solid real estate career? I mean, clearly, go for it to your best ability, but those firms represent a very very small part of the total institutional buyside employment opportunities in real estate (and legit they get 1000 or more qualified applicants per new hire grad spot, most which will be for post-MBA types).

Thus, I think you should be aware tons of people on this board and at your school would probably kill for a buyside SA, whether it is owned by BX or not. Just go for it!

 

No worries! I think I find it funny in part because I am old enough that when I was in UG, Blackstone (and really the whole PE world) wasn't that big of a deal in real estate. When they closed on the EQR buyout (I think I had just finished grad school), that is when things started to change (and well, the fact they all had money to buy stuff post 08 GFC). 

WSO get's so lost in what it thinks is big time you actually see posts of people seeming to "dunk" on some of the most prolific firms in the real estate industry in favor of the BX/SW/KKR types (Like when people seem to put AEW or PGIM down, firms that happen to rank 6th and 14th in private equity strategy funding raising per PERE 100, go figure...) 

 
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Well.... considering "REPE" is a made-up term that is popular on WSO but really has no meaning in the real world (like use that in networking and get laughed at).... I guess you can it that if you want (after all, it is private.... not public, maybe IsItREPE is still around to make a judgement call lol). Just go scan the PERE 100 (ranking by private equity strategy fundraising), lots of firms the WSO community doesn't consider "REPE" rank pretty high.....

Jokes aside, you are asking about real estate operating companies owned by private equity firms. They are not likely in the real estate investment mngt business, that would be BX, but they are effectively wholly or partially owned real estate firm doing deals as a sponsor/GP. They likely have a similar co-investment JV structure with BX with prefs and promotes. They are also likely very segregated and firewalled for conflict of interests purposes (i.e. BX and BX-jv partners probably can compete with the op co). This also allows for BX to sell, merge, or IPO the op co when timing/profits make sense (after.... the obsession on "private" won't likely go on forever).

That all said, they may run their own funds, but I don't think that is common. Bottom line, you have to gauge the activities of each firm independently. Who owns it is just a temporary fact, they could sell it at any moment. Regardless, think of OpCo as the GP/sponsor/operator and BX as the LP/JV capital provider, that's what is going on. 

 

Here's the deal, and I hate to be a downer. The majority of people, you included, won't work at Blackstone. Not sure why you are concerned that it's a step down from Blackstone. Unless I am misreading how you are wording your question, you basically are asking 'should I be worried that it is a step down from Blackstone' - well - pretty much every firm is a 'step down' from Blackstone in the eyes of WSO. On top of that, you're an intern looking for experience - you kind of need to take what you can get - any experience is good experience and there are plenty of awesome firms out there that aren't Blackstone. Most of the people at Blackstone work crazy hours and many of the associates are so burnt out by the end of a 2 year stint that they leave. Don't base your decision on Blackstone or not - just get some solid experience over the summer. Buyside deal experience at any firm is good and you will have door opened wherever you intern. Even after entering the industry, you could work at 'podunk' shop XYZ and move to a top firm. Real Estate is driven by networks - people care much less about prestige. I've seen many of my friends start at small, no name, shops and move to large institutions - I've also seen people go the other way around and than back again.    

 

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