Goldman Sachs Real Estate explanation

I'm looking into Goldman's real estate groups and was wondering if anyone can explain what their different groups do. What is the difference between GSAM and GS merchant banking? What are the types of work/investing, comp, and potential exits in both?

What does the real estate financing group do? Do they originate loans like other bank lenders at the asset level, do debt placements like brokers, raise corporate debt like typical bankers? Any info would be much appreciated!

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Comments (16)

  • Prospect in PE - LBOs
Sep 27, 2021 - 5:52pm

So they're really the same thing then? Some people on LinkedIn write GSAM and others write MBD, weird. Any info on comp at all?

  • Prospect in PE - LBOs
Sep 27, 2021 - 7:57pm

Is this about the real estate financing group, or MBD and GSAM, or all three? I've seen people be in both cities for all three so not sure.

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  • Prospect in PE - LBOs
Sep 27, 2021 - 8:00pm

So high turnover recently but headed in the right direction? Do you have any experiences with them, or know anyone there? Would love insight into comp, hours, style of investing, etc. Exits seem to be really good

  • Incoming Analyst in IB - Gen
Sep 28, 2021 - 12:31am

Goldman Sachs had what was MBD which was comprised of RE, PE, & Credit. There was an internal restructuring this year which placed all of MBD under GSAM which is why all MBD groups are now under AM. Someone mentioned that the RE MBD group did what an REPE group would do and that would make sense given that MBD PE group acted as GS's PE arm.

As far as IB, GS has a RE industry group under classics (which I would assume is like most RE IB industry groups) and a REFG under Financing group which deals with CMBS and originating loans for various commercial real estate transactions.

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  • Analyst 2 in PE - LBOs
Sep 28, 2021 - 8:08am

A good friend of mine works in the London office so I can provide some insight:

  • MBD is the PE arm of GS (comprises Corporate PE / REPE / Credit) and it has traditionally invested its own BS, but now as GS transitions to a less risky model, they are going to focus more on 3rd party capital. 
  • MBD or AMD? What has been traditionally known as MBD, now is integrated into the AM division, and it's called AMD Private (as opposed to AMD Public which is what was previously known as GSAM)
  • Strategies: they do thematic opportunistic investments, with lots of development.
  • Comp: Comp is very good. Base is the same as IB ($110k / £70k for first years and so on). Bonus is in line with IB at the analyst level, but after that, it is higher in MBD than in IB. The more senior you get, the bigger the difference.
  • Hours: Average hours are around 70, but it can vary depending on the deal flow. Most people don´t care about facetime, as long as you deliver it is ok. Mostly no weekend work, and usually no very late nights.
  • Culture: It is really good, they take pride in their partnership culture and try to cultivate it. People care about development, and seniors are approachable.  

I hope it helps.

  • Prospect in PE - LBOs
Sep 28, 2021 - 11:31am

This is fantastic, thanks! On comp, you talk about MBD. With MBD now integrated as AMD Private/ GSAM, I'm guessing your figures also refers to GSAM then?

  • Analyst 2 in PE - LBOs
Sep 28, 2021 - 11:53am

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