Started in Agency Lending at Big 4 Brokerage. Recently transitioned over to the PE side of the business doing asset management. Happy to help answer any questions about the transition, previous job, current, or whatever you have.
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How'd you leverage your agency lending experience for REPE? Are you doing AM for a MF focused firm?
Deal flow was probably the biggest point. Naturally saw a lot of volume on the agency side, and had nationwide market experience. I think the most important part in leveraging any experience is figuring out where the commonalities are and know how to talk about them intelligently and with conviction.
edit: didn't address the MF question originally... we do it all, not singularly focused.
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Everyone's favorite question - comp over time?
we got a winner. years of exp and comp?
~30% salary all in comp increase from previous role. Should clear $100k all in with under 3 yrs experience (thinking ~20% bonus). Will see with bonus/tax man in a couple months...
nice
So $85k base and $17k bonus?
Yes, same market. Major enough... but no NYC.
Yes, around 2 years.
Not MF focused, we do everything.
Think I saw a lot of crappy deals on the debt side. There is just so much always coming in, and you start to realize what the big differences are in quality. Don't know enough about equity of IS to speak intelligently about the differences, but think those roles would be a lot more transferable in terms of product quality.
Was looking for the next thing to learn honestly, just knew I wanted to be on the private side 4-5 yrs down the line. Got hit up by a recruiter and liked the team/learning curve.
Thanks I appreciate the response. A couple follow up questions: - What did the first round technical stuff consist of? - What would you consider are the most important "skills" required for the work you do on a day to day basis? - How's the work/life balance?
Sure thing.
Was asked to walk through different modeling metrics (DCF, IRR, NPV, etc). Then to explain a typical debt structure, sizing on an LTV and DSCR basis. Talking through pieces of the spread, mortgage constants, and some other high level stuff. Turned out to be much lighter than I thought (was expecting a full blown modeling test and case study, but I think they skip that for some and require for others).
Shockingly, the ability to figure stuff out on your own. My manager doesn't have a ton of time in the day to get me up to speed on things, so a lot of my time is spent hunting stuff down or learning by fire. I try to build up one big and strong list of questions when I don't know something or get stuck, rather than asking 30 questions spread out in 20 minute intervals. Other than that, organization. I've been given 15 different projects across all different assets/classes. Have a live acquisition, disposition, lease renegotiation, and gut renovation all going on at once, and have to manage deadlines for all quarterly reports as well. If I wasn't organized, I'd be drowning.
Pretty good so far, but starting to ramp up more and more. It's a great night if I'm out before 8ish! Haven't worked a weekend yet, so hopefully I can keep that going.
What was the recruitment process like going to REPE?
Recruiter reached out actually. I wasn't really looking, but it was a goal of mine to end up in REPE, so even though I thought I was a long shot given experience, why not throw my hat in the ring? They had been looking for a long while. Had two interviews, the first more technical and junior, and the second more fit based and senior. Took maybe 1.5-2 months. Meshed well with the recruiter, which I think helped, and was prepared on all fronts for the interviews. Talked to friends/mentors on the private side, and they gave a me clear and defined overview of what I could expect. Talked through DCF, IRR, mental math, and didn't get too crazy from there.
What did you talk about re: IRR?
Thanks for doing AMA. I would like to hear your opinions about my situation.
I have been a credit risk analyst in a Corporate Banking risk management group for about one year.
To be clear, I am involved in the calculation of credit risk exposures and regulatory risk capitals [e.g. risk weighted assets (RWAs), credit enhancement, collateral and cash flow analyses based on reviewing prospectuses, periodic reports and rating reports] of structured finance (e.g. non-agency CMOs, CDOs, mortgages/RMBS/CMBS, credit card receivables, student loans, auto loans, auto fleet leases, auto floorplans, equipment loans ABS) for our bank's traded securitization books.
My question is what skills should I brush on if I want to be a corporate banking analyst? What are other opportunities (other industry segments in finance) for me out there besides corporate banking? Thanks in advance.
Don't know anything about that side of finance, but just network. Talk to the guys sending/prepping these packages for your risk assessment. Figure out what they're doing on a daily basis and how they got to where they are. Being a year in, I think a lot is still on the table. Corp/MM lending sounds like a simple transition, but if you want to stay on the securitization side, the world is your oyster.
Congrats on your new gig and thank you for doing this!
I just started working at one of the DUS shops as a production analyst. I'm learning a lot from the job and I like working in MF sector, but I feel like DUS lending is a very niche field.
Should I worry about getting pigeonholed?
What are some of the exit ops from DUS lending?
Was it hard to get rid of the "agency guy" look?
If other members like to chime in, please do so.
Once again, thank you for doing this AMA!
Christ. The pigeon-holing phenomena that I see here is almost equivalent to the prestige talk on the IB forum.
This is not a direct shot at you, but in general. YOU DO NOT GET PIGEON-HOLED INTO AN INDUSTRY/ROLE/PRODUCT TYPE IN YOUR FIRST JOB. Like, for real though. When you leave, you will probably have two years experience. I guarantee you won't know everything about agency financing by the time you are done either, so how exactly would you be the "agency guy" or "pigeon-holed"?
Yes, you work in multifamily, and specifically in agency lending. You are just getting your feet wet with deals and that's all that matters when you start out. Period. Regardless of where or what those deals are. You can pivot to just about anything -- former colleague of mine at CB/CW left DUS production to cmbs/bridge/pref, another went to REPE with multi's focus, and there are many more that you can probably find. True pigeon-holing occurs when you are 5-8 years in your career, having been solely focused on one product (like DUS lending) since the start.
@m_berle" see it more and more. Got me pretty bad when I started out too, but maybe my obsessing over not being pigeon-holed is what got me out and where I am now. Who's to say... but agree with everything you're saying.
Awesome! I think its a great place to start. Just be a sponge and watch how strong producers work/know their deals vs bad producers.
This one is answered for you below.
Exit ops can be whatever you want. RE Lending (CMBS, lifeco, so on), General Debt/IS Brokerage, Agency opportunities, so on. Just focus on learning the business, cause DUS provides a great platform to learn RE and debt. Just be a sponge, keep your head down, and recruiters will reach out.
No, I don't think that actual look exists. People in DUSassign that to themselves IMO. Everyone I work with comes from extremely different backgrounds. IB, RE Brokerage Research, one guy from costar.
(Moved reply)
I'm currently a Junior with a state school on the East coast and I currently have an acquisitions analyst internship at a small real estate investment firm. However, they aren't large enough that I could work there full time. I also just received an offer in M&A advisory for this coming summer, but I would like to pursue a career in REPE. Are there any RE internships still available now that would set me up better for this goal? If I went with my M&A advisory internship, would it hurt my chances to get into REPE in the future?
Thanks!
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