I have an internship offer for Hines within their acquisitions team in a European country. How are the exit opps and pay?
I read that pay is less than IB, but they place into MF REPE funds, is that correct? And how is the long-term salary? Is it comparable to IB?
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If you want to do RE, go with Hines. The pay will be lower, but you'll have significantly better hours and minimal weekend work.
Can you give me avg. compensation numbers and the amount of hours I would be working?
Country dependent. What country is this for?
Germany
100-110k all in; 50-60 hours a week.
100-110k as a first year?
Depending on what country it's for I'd take Hines. It depends on what the mm bank is and if you're more interested in real estate or finance( im assuming it's no re ib) I'd also be aware that if you are a US citizen the first 100k or so won't be taxed by the US government so you could be making more than you think.
Hines pays fairly well and if you make it to VP i believe they let you invest in the deals. Not sure what that pay is all in but it's substantial. There are very few people who I've met who enjoy investment banking. Also, the skills for IB VP are very different from IB Associate.
I'd take Hines as you can always transition to IB, fairly easily from an MBA, if you don't like Hines.
Tbh RE seems much more interesting than industrials or small/unknown tech companies. All I'm worrying about it compensation and exit opps to REPE (and their compensation )
If your concerns are exiting to REPE then go with Hines. If you go with MM IB, you'll be competing with Analysts in BB / EB RE teams, and with Analysts at top developers / investment managers like Hines.
If you're going to be exiting within 2-3 years focus less on compensation and more on the end goal. Sure, you'll earn more in MM IB, but you'll also work a lot harder and limit your exit ops to REPE.
With Hines you’re starting on the buy side which is where most of not all IB analysts try to get to—not all make it. If you like real estate, this is a bird in hand and easy decision. FWIW I went this route out of b school and my banking friends are trying to quit their jobs (hours, quality of work, too corporate) to get into real estate and the door has closed for them.
Hines IS the exit op.
Why would you go there with intentions of exiting after only a few years? I swear, some on this board are obssessed with “exit ops”
Acquisitions is REPE lmao. People on this board love to argue about semantics and what the fund structure has to be for it to be considered private equity, but either way it’s the exact same work
Really? I also have an offer from what I thought was a real REPE fund (6bn AuM) they pay €100k all-in for first year analysts. I'm willing to take a wage hit if I have better exit ops to a MF
Hines has $111B AUM. $55B of that is investment management and the other half is property management.
takes HINES if you want to do real estate!! will be harder for you to recruit again for CRE fulltime. having a CRE internship will make folks think you are commited!! IB is a nightmare.
you would be an idiot to not take Hines. Fuck entry money, do you know how much carry those guys make?
I always thought only like 10% of these people who start there will eventually get carry? And what is the number we're talking about?
MD and above basically never leave, so you'll get stuck at director for a long time.
a mentor of mine was at Hines for 10+ years in his 40's, accrued well over $15M+
Hines is a notorious for paying poorly, but the brand offers a stamp of top tier credibility on a resume. Typically Hines invests on behalf of separate account mandates or programmatic JV's, as opposed to out of their own discretionary commingled funds. It's a fee driven business model more than it is a promote driven model, but given the sheer volume and scale of the acquisition and asset management fees, there is plenty of free cash on their balance sheet.
Thanks! So what are the best-paying companies in the RE world? Tishman Speyer, Eastdill or maybe JLL?
Take the Hines offer if you find real estate interesting. You won't regret it. Hours are great, people are top-notch, firm is extremely well-respected, the deals you get to work on are complex but rewarding, and compensation, especially once you get carry, is fantastic. People at Hines love working there and have often been there for decades - turnover is super low for a reason. You don't see that in IB. Unless you absolutely love IB, this is an easy decision. PM me if you want more info.
Previous intern/analyst at Hines, decided to leave to start a fund with an MD from a Mega Fund think BX/KKR/Apollo
Pay at Junior level is okay nothing insane, they don't do "carry" as per say they might do it on the value add european fund but the returns from that fund are pooled and paid out so if your office kills it and others fuck up you won't get paid.
However the majority of Hines deals are done on a deal per deal basis i.e.. no close need funds they raise capital as they do deals and have all sorts of access to capital from hedge funds to the biggest pension fund in the world.
This can be incredibly lucrative as something which hasn't been mentioned above is that the Hines family will lend you the equity so they are contributing the say 5-10% to a deal and on an opportunistic deal assuming solid promote terms and you get into at least the 2nd hurdle the returns can be absolutely savage I've seen IRRs > 40% & equity multiples of + 17.00x
What is very enticing is that they start giving equity in the promote at Analyst/Associate level at least in my office so you can make absolute bank if your a baller.
Thanks, I'm really grateful for all the great answers! Maybe something regarding my background, I'm currently interning at a small m&a Boutique and while I admit that the work I'm currently doing isn't the most interesting my pay is already more than my parents ever earned.
The thing with Hines is that they don't recruit Bachelor students, even when I'm interning there. So the real question is if an internship at Hines will open me more doors in the REPE world than MM IB internship will in Industrials PE. Also, where should I look in order to get a better insight for RE companies and especially their "prestige". What are Tier1/Tier2/Tier3 players in the RE world.
PERE 50. Hines is good, but nothing excellent (IN GERMANY). They have a lot of developments, but lost all important ones in FFM to CA Immo/Tishman/Gerch/GEG you name it. I have no knowledge of their standing outside of Germany, but they seem to be good, juding by the posts. If you make it to tier 1 / 2 IBD and focus on RE and not industrials or something, you have better options going into REPE (my opinion). I work in REPE. Obviously, this is because your starting in Hines Germany and not US.
Not sure why someone threw monkey shit, all of what you said is true. Did a deal recently that was over 200% IRR.
200% IRR? is that property level IRR or JV developer IRR due to promote structure splits? you must be slanging property at a very unique location or you are full of shit at 200% IRR for property level unless it's a SUPER HIGHLY leveraged deal and you sold on proforma to an idiot, hence the crazy IRR.
40% IRR for a GP is not unrealistic if you do a very solid deal on say a 25%+ IRR and you have good promote terms coupled with a low required initial equity contribution.
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