Hedge Funds With Real Estate Arms
I've been seeing more and more hedge funds open up a real estate arm. By this, I mean actually buying up real estate as equity investors, going into asset backed securities like cmbs, rmbs, mezz debt, etc., or real estate focused public equity investments. A good example would be Two Sigma, a firm known for a quant strategy going into RE (yes I know they are going multi-asset now but RE seems to be new). Same with Baupost and the likes, but they've had RE for a while.
I'm joining a MF REPE shop this year and have a few questions.
1) Do you think more funds will continue to grow into this, with interest rates being low and the fees getting lowered?
2) What would pay be like for a junior doing real estate at one of these funds? Would it be higher than MF pay? Junior as in MF Associate (think somewhere of $250-$350k)
3) All of my experience is in RE and I'm joining a MF in the RE group. From what I've been told, they will do asset, portfolio, and company acquisitions. So it seems like the three statement modelling experience would be there too.
If I'm considering going into the hedge fund space later on, would my best bet be to go into a RE group and then work into the public equities group?
Or would you suggest trying to go into the PE/ credit group at my MF if I want to go into HFs?
Or do you think a MF name is good no matter the asset class in order to get looked at by top headhunters and fund managers. Just continue to read investment books, research companies on your own time, and have a few pitches prepared?
Not sure how recruiting for HFs work, anything would be great. Thanks!