I’m an auditor in London who is about to qualify and I want to move into a PERE role. I understand that audit has limited relevance to PE as a general rule, so I’ve looked at internal roles at my current employer that I can transition across to in our Deal Advisory function- Corporate Finance, Transaction Services, Debt Capital Markets etc. Which of these should I pick if I want my final destination to be at real estate private equity house (preferably associate level). How reasonable would it be for me to transition from one those straight into REPE? Or will the REPE houses discount my audit experience and opt to promote their analysts instead/ stick me in with the new graduates at analyst level.
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theaccountingmajor Has lots of experience with this. I'm sure he's willing to chime in.
Network, network, and network.
Thanks. This will sound rookie, but what are the best ways to do this outside nurturing any professional relationships (that I might develop once I transition into say, TS)? What are PE folk most receptive to?
Go straight to a REPE or a brokerage shop even if it means you have to start from scratch. And just reach out to ppl via linkedin (cold approach).
Lateral into the Transaction Services group as quickly as possible.
Agree with this. The longer you spend at Big 4 (in audit or TS), the harder it will be to move. Get to TS, pick up some relevant experience, and start networking/looking for jobs. Find a way to get some modeling experience and argus experience because that is an important part of the skillset PE shops will look for.
Don't the Big 4 have Real Estate groups? That's obviously your target.
Another way would be through some type of Tax, preferably a HNW tax division. A lot of RE transactions have very big tax implications behind them. Experience in tax and a later lateral to RE could make for a powerful skillset
I went from Big 4 (could only take about 1-2 years) to REPE by networking through ULI & NAIOP (national real estate organizations in the US with local groups). Also helped that I had an internship in undergrad at an RE Firm so I knew the lingo and could talk about cap rates, cash yields, levered yields, IRRs, etc. Before I started applying, I paid a lot of money (like $1,000 which is still absurd) to take an Argus training class, so I could show some initiative that I was serious about learning the industry and that I was not a total newbie that would need a lot of training. I paid for the BIWS REIT modeling course and learned a bit more. I read 2-3 textbooks like Linneman's from Wharton, and Geltner's from MIT, and really tried to answer textbook questions and create the excel files as if I were a student. I paid for 1-2 of the REFM courses on modeling JVs and waterfalls, probably the most difficult excel learning in real estate, although the math is quite simple.
What I did not do was waste time studying for the CPA when I realized I wasn't going to stick around the industry. I passed one exam in undergrad and then stopped.
I'd recommend reading some of the larger brokerage firm's reports on big picture national real estate updates before going into interviews or just following the industry.
You're probably not going to get into the industry at anything higher than an analyst without prior experience, its not a big deal in real estate, it's all about experience, so don't worry about age. You're boss may be younger than you, and you may make less money than you do now, so you just need to accept that going in. In hindsight, if I was 100% committed to Big4 and stuck with it, I would probably be competing for partner right now making $200-300K, going on to $400-500K, but I would be hating every hour of work and working 16 hours a day, so that in itself would have probably prevented me from excelling. My title is insignificant now because I'm at a small shop. I'm making less than $200K, work maybe 60-70/hrs week, but have carry in some deals, so there's some good upside.
Bottom line: network, teach yourself as much as possible, don't let your ego get in the way of title or salary.
VodkaRedBull @RE Dude
Thank you both for very helpful responses there.
I've just finished my ACA (UK equivalent of CPA). Luckily age is still very much on my side and there are benefits to having the ACA- I don't mind that I've spent time in audit. But I am acutely aware of the fact time spent in accounting past this point will be counted against me.
I'm going to go after a small shop REPE analyst role or a lateral move to TS/RE internally before making the jump in a year or two.
Again, thanks all for all the tips- hopefully I'll have some of my own to give back in a few years time.
I've seen it done several times in my market, maybe because one of the big four firms out here audits a bunch of REITs, real estate investment firms, heck - one guy who audited our REPE shop now works here.
You gotta get on real estate client projects. Understand their models. Talk the talk, etc. And network like crazy. But if you've audited big name RE clients then REPE shops (at least small ones without super formal / specific recruiting channels) should like that experience enough to interview you. And then, just make sure to knock the case out of the park and show you can handle the work.
Also, I could be off base but it seems like the longer you work in audit the less you're seen as a young capable smart mold-able guy and the more you're seen as a CPA / portfolio management / asset management candidate . So get moving brotha
Others have said this above, but I would recommend looking at asset/portfolio management roles as well as acquisition for your first step. Would likely start as analyst but (in my experience) we have always been looking for someone who has analytical ability, presents well, and knows how to work for analyst roles - rather than someone who is an expert in real estate. I made the move from Big 4 real estate transaction advisory to a REIT in an AM role before transitioning to acquisitions - but had plenty of friends go directly to acquisitions. From audit - it might be harder to make the jump right to acquisitions, but AM/PM roles would be a good transition and would give you an opportunity to learn on the job.
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