Chances at analyst/associate PERE position (top 50-75) ? / Next Steps?
Hi Everyone - First off, happy New Year!
I'd like to get your advice on how I should best position myself to land a role as a PERE associate/analyst (top 50). I've had the opportunity to read other threads related to the topic and was impressed by the quality of advice given by the community here. That said, I thought I'd try my hand and get some feedback as well.
I am currently a student at NYU's MSRE program and have around 4-5 years' worth of work experience in various sectors of the CRE space.
Work Experience (Most recent to oldest)
1) Originator (debt/equity placement) for a top-tier RE finance advisory shop in NYC (think Newmark, CBRE, Cushman)
- 1.5 years
2) Independent CRE Broker/Consultant (Self-employed)
- 1.5 years
3) Investment Sales Associate (@ one of New York's leading IS firms)
- 6 months
4) Acquisitions Analyst (mid-sized PERE fund)
- 1.5 years
I was considering an MBA, but quite honestly I know CRE is my thing and didn't want to diverge from the path. Aside from developing advanced RE financial modeling skills (argus/excel) and performing well academically, how can I get the attention of top tier PERE shops?? I don't have prior experience in IB, and my most applicable work experience was around 4 years ago - " (4) Acquisitions Analyst (mid-sized PERE fund) "
What are my chances, and how do I position myself to be competitive for such a position?
Sincerely,
Fellow Monkey
I think your chances are good. Definitely focus on networking with people at those firms and leverage your program's alumni network. You could also consider recruiting for REIB roles as they often feed into PE.
Thanks for your comment. I appreciate it.
So are you currently employed at the D/E shop in (1)? You have a lot of jumping/short-tenure to your background, shouldn't be much of an issue coming out of grad school, but it was my first reaction to what you listed. (as a side idea, you could "merge" 1, 2, 3, into a resume entry as "broker", so it looks like 3.5 years in same thing, that would obscure the firm names, but maybe there is something creative you can do).
That said, your background seems fine for joining a principal shop as associate/analyst, just follow the standard networking/applying game. Your most direct path could be with a former/current client or someone/someplace you have met via your brokerage work, I would mine that pool first.
Thank you for your comment and feedback.
I am no longer employed by the D/E shop (Covid related). This is partly the reason I chose to obtain the MSRE. I did, however, have the opportunity to network/rub shoulders with some major REPE/private investment firms during my time there. Your probably right, maybe my best bet is hitting those contacts I've already made some level of communication with...
To be clear, I am not suggesting you lie or misrepresent anything on your resume. What I am suggesting you look at (and this really only works if the positions are similar enough to make sense), is something like this for organization..
- Commercial Brokerage - 2016 - 2020
- D/E Broker @ CBRE (2018 - 2020)
- Consultant Broker @ SE shop (2018)
- IS Associate (2016 - 2018)
Essentially, using brokerage as the main "firm" job and then using each step as a title, like you were getting promoted, but you still need/should denote the firm names. It's just a reframe, not much difference, just makes it appear you were intent on doing same thing and getting promoted/advanced.
I'd say it's better to present as someone with 3.5 years of brokerage experience than someone with 1.5 of this 1.5 of that, etc. I don't see any stretching the truth here, it's just presentation of the same data.
I'll add, if you reframe that way, then you can add a line like this in a email...
"I've have 3.5 years of experience in institutional brokerage starting as an analyst @NY IS firm, working as an independent consulting, then joining CBRE/Newmark/etc. in D/E placement"
Still accurate and makes sense.
What happened with that acquisitions analyst role?
As in why did you go from buyside to intermediary?
Good Question... I ask myself the same one often lol. Had I stuck out the PE route from early on and potentially lateralled to a higher tier REPE fund, I probably wouldn't have required an MSRE to get back on track.
In short, I saw all the money being made by top IS brokers in the market during the sky-high times of 2015, and so, thought that breaking out on my own would lend good fortune. Also, being that the role was for a small-mid sized boutique fund, my pay was largely commissioned based. I was paid a decent base, but the real $ was in the deals. Disgruntled by the payment structure, stringent acquisition requirements of the fund (fewer deals for me), and my novice influence by others in the sector I made a move.
I now realize that was a mistake. It is what it is. Gotta look forward.
Understandable. Just curious. I’m in d&e right now and will probs use the msre/client connection for a move to buyside in a few years but I think your chances are very solid. Best of luck and stay motivated.
Thank you. Best of luck and high spirits to you too!
The top 50-75 ranking of PERE firms isn't really a homogenous group, nor does desirability correlate perfectly with fundraising. I'll roughly categorize these firms by associate compensation.
1) Private Equity / Hedge Funds - Make up most of the top 75, raise closed end funds, thinking BX, Starwood, Carlyle, Etc. Would honestly give you zero or near zero chance at these. They typically hire from IB programs / top MBA programs or from other firms in this group.
2) Developers with Equity - As the name suggests; capitalized developers / operators (usually do more than just development though; not geographically or asset class constrained). Would put groups like Tishman Speyer, Hines, and CIM in here. Because there aren't many firms like this and they're pretty desirable jobs, probably a near zero chance at getting in from where you're at but still possible. Most people I know at these are from IB / Eastdil or hired out of top MBA / undergrad. Network with NYU alum for a shot.
3) Investment Managers - Not usually raising close ended funds, likely more involved in more separate accounts. Thinking guys like AEW, PIMCO, could probably throw PGIM in here, Invesco etc. Would definitely be an uphill battle but doable. Some may recruit on-campus at NYU but if not I would reach out to alum from your program at these firms and try to break in. Probably would be challenging otherwise, everyone I personally know who's gone to these shops has had a stronger background than you FWIW.
4) Local / Asset specific / Operators / Semi-institutional - Likely geographically / asset class focused, may be the GP / operator type, may partner / raise capital on a deal by deal basis. This is a very rough grouping but I'm thinking more niche/focused firms like Bridge (office focused/ MF focused), Paramount Group (public, NY / SF office), Savanna (NYC), Maybe Lubert Adler. A lot of these names won't be on the PERE 100 though. I think in the end, companies in this group should be your target, especially groups based in and focused on NYC. Your deep experience in NYC real estate along with your school being in NYC should definitely be an asset. I doubt many of these firms have standardized recruiting pipelines so as always I recommend leaning on networking but I think you may find success here. A stop at a firm in this group is also a good way to gain institutional buy-side experience and then make the jump to a more typical REPE type firm if that's your cup of tea. Firms in this group can be great to build a career at long term though - build out a skillset in a niche and start earning carry.
Reading this may seem pessimistic but I think those who are making the blanket assumption that you'll be good are doing you a disservice by not being realistic. You didn't clarify what you worked on at the D/E placement shop but it feels like it was in the middle-market / smaller deals. If that's the case, the reality is that you're someone who got fired from a brokerage (a background which, as someone who is involved in recruiting at a firm in the first bucket, is already looked down upon even those who work on institutional-scale deals) and who has never worked on a deal similar to what these large PE firms are working on. Also, reading between the lines, it seems like you may have some ego / an inflated self-opinion. For example, you claim you were laid off due to COVID related reasons, but unless Newmark / CBRE / Cushman laid off every single person in your role, you were really laid off for poor performance, and recruiters will know this. You're calling every single job you've worked "top tier" or "leading" but I've never heard of a reputable REPE firm where analysts are paid mainly in commission, and people who work at "top tier" firms don't really need help jumping around to other top tier firms like megafund REPE. There is nothing that differentiates you from the next Wharton grad who works at BAML and wants to hop to the buyside. My recommendation would be to focus your energy on high-probability scenarios.
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