Blackstone RE vs top IB as first job
Fortunate to be a position to consider a top BB IBD (think MS M&A/GS FIG/TMT) and a Blackstone real estate position straight from undergrad. I am very conflicted because I know both are really privileged positions in terms of gaining exposure and I don't want to make the wrong decision. Here are some things I'm thinking of:
- Breadth and optionality: I am broadly interested in multiple industries and at this point in life I don't know which I want to do. I am interested enough in real estate investing (the physical asset and architectural aspect, the more focused work and faster mastery associated) to know that I will be quite happy doing this. I just don't know at an undergrad level that it is the thing that will make me the happiest. It feels like people who go into RE very rarely leave RE and the IBD option buys me a broader perspective and more time and optionality. But I also don't know if that optionality will actually make me happier — the IB analyst path feels quite cutthroat and if I don't know if I'll come out of that happier than I can feel starting at Blackstone. Does being from Blackstone RE make a difference relative to general RE?
**- Sell side vs buy side: **as said very well by OP in am-i-missing-something-about-buyside-exit I've also realized I'm not sure if "I am that interested in picking apart how a company operates and how to improve that". If I do go to IB I'm not dying to exit to corporate PE or HF/MFs and am considering moving to corporate roles or staying in the sell side (if I make it and haven't died from the lifestyle yet). I know RE isn't like corporate PE at all but not having had that much RE experience, would really appreciate anyone's perspective on what makes someone stand out in REPE especially at the junior level.
- Succeeding at the junior level: I have a small sample size for RE but it feels like a less competitive field with better work life balance compared to the IB analyst path. That said, I'm willing to suck it up and do IB if the outcome is worth it, I just don't know if it is at this point because I don't even know what is the outcome I most definitely want.
Would appreciate anyone's perspectives on the above and other factors that may come into play. Thank you!
I’m not sure how you are considering both of these given that internship offers haven’t gone out yet and most of FT recruiting hasn’t happened either, but nonetheless will share my 2 cents.
If you don’t want to be in real estate, then go the IB route and keep your breadth of options open. The brand names of all of these places are fantastic, and the comp won’t be too different at a junior level. IBRE groups are pigeon holing, and starting off in a REPE team even more so, as everyone you’re working with (from associate level up) has decided they want to specialize in the sector as a career.
yikes, OP
Yea that's not even true though. Offers have been given out
Thank you for the response! Don't want to be too revealing but I do have the option to go to both places (perhaps not in the most typical set up). And for the record internship offers have gone out since March for both IB and Blackstone RE.
What you end up picking. Somewhat similar situation
I think most people regard Buy Side>Sell Side, and BX is clearly a top player. This presumes you want an RE career, but you could move to other areas of PE or even IB with BX on your resume for first job.
Plus, you have the option of hitting reset with an MBA. I would personally pick the BX deal, I-banking is actually not that interesting at the end of the day (personal opinion).
Would not recommend if you are going to attempt to move to their PE fund. From speaking to some people at the firm, it seems like internal mobility at BX is very difficult unless youre in their PE group or TacOps group, or are moving from REPE Acq to another real estate fund at BX.
Also, recruiting for Corp PE is very structured, and they usually look towards IB programs as feeders for them. Not to say its impossible, but IB->Corp PE is more standard than REPE->Corp PE, at least at the UMM/MF
Worth noting, I was actually thinking you would need to leave BX to move to PE or something else, I would not count on internal transfer at any firm, it doesn't happen in most fields.
I was in the same position as you are right now. Ultimatley, I decided to go with the BX offer because I am personally MUCH more interested in RE and was looking at networking into REIB for my generalist offer.
To give my two cents as many people before have said, if you are dead set on doing RE then take BX it is a world class platform and your exit opps into RE and even sitting tight at BX is great. On top of that I have seen cases (granted very few of them) where analysts make the jump to corperate PE at different shops.
Of course, if you want to keep your options open take the IB offer.
I would also not discount the idea of making sure you are working alongside people that you enjoy and feel as if will help you succeed and go to bat for you when you want to make a change.
I usually gravitate to the top group I can get into given that I’m interested in the field. BX for CRE seems to fit that. I don’t know enough about IB.
Then I look at optionality but more so in the places I want to live. For me real estate = Hawaii
Those two things.
As someone who did IB and now works in REPE, here's what I will tell you. Going from a Top IB group to a top REPE is a well trodden path. There is the added benefit that IB opens up doors across the corporate finance, alternative asset management and consulting world in a way that REPE does not. If you're still honing in on what you want to do, go to the top IB group and figure out where your interests are over the next two years. It's going to be harder to go from BX Real Estate to Morgan Stanley M&A than vice-versa.
REPE just isn't a great first job for someone who still has tons of interest in other industries. The analysis is very different than that of corporate finance. I will say though, if you will be looking directly at buying out REITs versus single-asset investments then that will help mitigate the lack of corporate financial accounting and three-statement analysis in single-asset acquisitions/investments.
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