CRE Debt at BB with opportunity to move to PERE...

rmg13's picture
Rank: Senior Chimp | 23

....the only caveat: not on the deal team.

Background: graduated top engineering school in LATAM, worked with RE development for +4 yrs and moved to the USA to get a mba at a target school. Joined a BB to work with CRE Lending AM post-graduation and 6 months later was headhunted for this boutique PERE shop to work with IR/Capital Raising.

Wondering if this is will be the final blow to move to a PERE on originations...

Comments (8)

Nov 26, 2019

I wouldn't think that would be a final blow. We've got a guy on our deal team that internally transferred from accounting. Look on LinkedIn to see if anyone on the deal team has come from non-typical backgrounds. At a boutique shop you should be able to switch over after a couple years if you demonstrate you would excel in the position.

Nov 27, 2019

I guesss lateraling inside a Boutique PERE would be easier than from the debt side on a bb right?

Most Helpful
Nov 27, 2019

Unless the deal team is a bunch of former IB guys who only want to hire other IB guys, then yes it should theoretically be much easier than transferring from debt AM.

What is your goal? I understand the draw of PE acquisitions but is your goal more to do deals or to be on the equity side of the business? If your goal is more centered around doing deals, a deal junkie type person would probably say they'd rather be doing deals on the debt side than IR type work on the equity side. I don't know if you've talked to RMs/loan officers at your bank but I assure you that if there's deal flow, they are probably doing very well for themselves. Something to think about.

Also if the capital raising portion of your job at the PE firm is significant, that's great experience in itself. Structuring JVs and securing financing for properties is considered deal type work is and is nothing to look down on. Those people also do well for themselves.

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Nov 27, 2019

Its not the case. The background of the team is pretty diverse!

My goal is to be do more deals, but on a smaller structure. In my experience, banks are very slow and you have to deal with a lot of bureaucracy, internal risk, compliance and etc. This is what kills me....the boredom of working on the lending side in a huge structure. Everything is a cookie cutter and there is little to no space for creativity/original ideas.

From what I could gather, the deal team and the capital raising team at this PE works in tandem (A couple of the principals lists bot on their job description). Which I guess reinforces the notion of lateraling.

Thanks for the advice!

Nov 27, 2019

It's never too late. Keep on networking and go for the position that you want. You're in a better position than you think are in. Don't give up and compare to your peers who you think "have made it".

Life doesn't stop once "you get the position". The fun is about to start. Furthermore, based on my observations, people who like what you are doing in this industry (and for any), they never want it to stop.

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Nov 27, 2019

Always funny to me. The idea of "making it" and the perception that goes along with it. I always would compare myself to guys in REPE thinking they are the ones who've made it when I was in brokerage. When I left brokerage to go to REPE at a large firm (top 20 in AUM), all the other analysts were telling me that I made it and that it was going to be amazing. Now I'm comparing myself to guys at BX, Carlyle, and BF, thinking if only I could be in their shoes... It never stops.

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Nov 27, 2019

There's always someone. If you work at Hines or are under 40 doing your own sizable deals, you'll immediately catch some admiration from me.

Nov 27, 2019