How to choose a REPE firm
How to choose from multiple REPE firms for an internship/ potential FT offer withing their acquisitions team? How important is culture vs AuM? And does it make sense to start off in REPE or should I go first with a T2 IB (Nomura, Houlihan Lokey, Jeffries, etc.). This are my options:
- Firm with $28bn AuM (~100-150 employees in total)
- Firm with only $5bn AuM
- Firm with $1.5bn AuM (10 Employees)
- T2 IB (Nomura, Jeffries, RBC, Houlihan Lokey)
All of the profiles from current employees are similar. (e.g. T1/T2 Consulting and IB)
Sounds like great offers and good questions, but what are your career goals? that will better steer which option to go with.
While I am passionate about RE, I would be ok working in a different field if my general career would be more lucrative.
Do you have a number 3 goal as part of your career? If not working long hours and making money are the only priorities you will burn out soon. RE typically doesn't work the longest hours relative to the rest of finance, but there will be some long days and the people who stick it out are generally very passionate about what they are doing in the industry. The ones who aren't passionate, burn out and hop to something else entirely different.
Why are you passionate about RE? Answer that question.
EDIT: The hours can change in RE but not within 2-4 years. Its not really till your much more senior or potentially running your own shop, but even then many will work more hours but they enjoy it.
I guess my ultimate goal is entrepreneurship, so I guess running my own shop or at least be a partner at a PE firm (not neccessary RE).
Honestly, the reason why I'm mainly interested in REPE is, that it seems much easier to break into a good shop compared to traditional PE. And I guess PE seems always more lucrative than IB in the long run.
Also, what are typical REPE hours? I assumed a 60 hours a week with the occasional 80 hour week. Rather than 80 hours being the average like in IB.
You'll probably be working 50-60 at most at the REPE shops unless you're at a handful of total grind-houses. Worry about getting the FT REPE offers first before you spend time weighing decisions you don't have in front of you. It's not like IB where an internship has a 90% chance of resulting in FT offer if you play your cards right while you're there. It's a total crap shoot since the staffing/org chart is very different.
If your goal is to run your own shop, you're going to be putting in a lot more hours as an entrepreneur/starting your own fund. You'll have to fund raise, hire, manage, source deals, oversee the portfolio, make sure the strategy is executed (capital plans, leasing, etc.). It's not like you just one day say 'hey I think I'll run my own shop' and the hours get better. They get much worse before they get better unfortunately. But if you make it/get it off the ground, it's for sure lucrative as hell and you'll get a good W/L balance.
i would prioritize it by which one is most likely going to make ft offers. I went to a huge, highly prestigious developer my junior internship with a bunch of kids from Wharton, after we all made it through multiple interviews and a super-day, and no one got ft offers after the internship ... soooo... dont do that, we all were left scrambling for ft roles afterwards and we didnt all end up in an ideal spot. RE is weird like that.
If you have the choice, go with $28B AUM. Bigger name. Especially early in your career, a bigger team that’s global helps you build great lifelong relationships in the industry with more folks (years later they will be doing all kinds of things; good connections).
$28B AUM means maybe $5B-$9B in annual deal flow, meaning lots of transactions. More work and more learning, and maybe a little big more money, if you’re young, crank and get exposure to different geographies, real estate asset types, funds (different strategies), and deal flow.
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