Debt and Equity Placement vs Analyst at Midsize REPE

I looked around and I couldn't find a recent post covering this so since it is relevant to my current position, I was hoping I could get some advice from you guys.

What would be a better place to start a career in real estate?

Analyst at a debt and equity placement group (think Northmarq, Berkadia, HFF) where I would get exposure to all asset classes.

Analyst at a mid size REPE firm (On their second fund, raised ~300 million, expecting to start next fund soon @ $400-500. Only focuses on one asset class. Do not do any ground up development, but they focus on value-add and opportunistic. As an analyst I would work on both acquisitions as well re-development projects. These are both in the northeast so there is no difference in location preference. Pay also does not matter.

I do not really see myself becoming a producer long term and that is why I am leaning toward to repe shop. However, there is a familial connection to the repe shop so it would be nice to work at the broker and not always be looked at as my dad's kid.

Thanks for any advice.

Nosky

 
Best Response

Both are good options. I worked in a placement group before my current role so I'll give my two cents on that:

Like the group you are contemplating, my group focuses on all asset classes, and the exposure was extremely valuable at the start of my career. I liked working on some asset classes a lot more than others, so when I applied for buyside roles (some of which were niche similar to your PE shop offer) it made it a lot easier to determine what I wanted to do. Also, I worked at a smaller firm, and it was only a hindrance to some of the top tier PE shops (who wanted candidates who did BB IBD/worked on the buyside already). If you network you have the potential to move into pretty much any role.

You should ask some questions about the level of analytical work that you would be doing at the placement role. Some brokers are running very vanilla analyses, or receive materials from a client and immediately start blasting them out to the market. Those shops make their money, but you won't get as good of an experience at the analyst level. It would also be good to ask about the progression paths at the firm. At some shops, you don't ever have to be a producer, and instead can focus on placing transactions.

Looking back, I personally would have taken my previous job over an offer at a niche PE firm as my first job, unless the PE firm was one of the best in its space.

Feel free to PM me with any questions.

 

Hey RESC thanks for the detailed response. How did your experience placing capital prepare you well for the buyside? Or was it just good exposure to the industry? What type of perspective is gained from working at a placement shop? DId you get to see a lot of investor strategies? And did you move into an acquisitions role or more Asset Management?

Thanks, I really appreciate you taking the time to pitch in

 
Noskyhigh:

Hey RESC thanks for the detailed response. How did your experience placing capital prepare you well for the buyside? Or was it just good exposure to the industry? What type of perspective is gained from working at a placement shop? DId you get to see a lot of investor strategies? And did you move into an acquisitions role or more Asset Management?

Thanks, I really appreciate you taking the time to pitch in

No problem. In order:

  1. I thought extremely well. I ran deal level levered CFs, waterfalls (both deal level and at a GP level), and was basically running the model for some of our clients. I had no problems with the Excel tests in my buyside interviews and didn't have issues transitioning to my new job

  2. You get a good view of the capital markets and industry trends. When the CMBS market takes a dive the senior guys on your team should be the first to know about it

  3. Yes - some of the deals I worked on: ground up construction, conversion of a vacant historic building, stabilized refinance, value add bridge loan/light renovation, preferred equity behind an in place senior loan, pre-development land loan

  4. Acquisitions

 

Amet quas quisquam qui. Non ipsum possimus qui corrupti. Velit voluptatum neque consectetur expedita id. Libero est eum autem ut.

Magnam sit ab aut sed sequi quod. Ducimus qui deleniti assumenda qui et ipsa iste.

Laboriosam qui aliquam sit blanditiis. Alias nobis qui non molestiae aperiam qui optio ipsam. Labore delectus perspiciatis dolores ex modi in. Ipsa eveniet eius quam aut recusandae ratione. Qui asperiores quos consequatur praesentium. Error vel non itaque et ducimus nesciunt. Consequatur accusantium id molestiae.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”