Landed Gig - Need advice ($3.B AUM)

Quick overview: Posted the other day about an excel test. Was bugging. There was no need to stress, it was simple. My background: 2.5 years finance (non IB), 1.5 years boutique REPE in Los Angelos. Landed job at a firm that has ~3B AUM. Firm has very reputable leadership (well known), very smart guys, generalists.

Question: Do I take the job?

Reservations: 2 year analyst program, invitation to stay based on performance - I am going on 4 years of experience and want to make sure I'm not making a poor decision by jumping to an analyst program. I am very confident with my REPE skills and knowledge.

Will a job like this (reputable and well known firm) open the door for acquisition opportunities at the MFs? Personally, I'd rather stay at a smaller firm like this but there's always a chance that I don't stay for whatever reason. Fit, desire to live elsewhere, lack of growth opportunities, etc.

$3B AUM - where does this stand in the world of REPE? Is this considered small, middle, large, etc. Enough dry powder for me to have fun with lol, but would like to get opinions.

 
Best Response

This is my personal opinion but congrats on getting the job offer but why are you leaving for an analyst program where you'll most likely be there for two years learning the same skills you already have? I am assuming at your current job you are the analyst where you are modeling / uw / doing investment packages. Do you really want to do that for another two years? Is it more for the name recognition of being associated with a more well-known firm.

If I was you I would stay at your current firm and interview for jobs that allow to take the next step in your career where you are interfacing with Sponsors / Operators being involved in the negotiations on terms sheets and loan documents and sourcing your own deals.

As for whether this opportunity will open doors for acquisition jobs at a MF I think with your background already you should at least get an 1st round interview with most REPE firms whether you took this job or not.

$3B AUM I would say is Small to Middle Market but I consider my firm a $10B AUM firm to be Middle Market.

How large is their current fund and what is the investment period? Also how often do they raise a fund?

 

Good questions. Not about name recognition or being associated with a well-known firm. My firm has a very focused strategy and rarely strays, albeit well suited for the market they operate in. I want to be exposed to a wider range of deals - both property type and strategy. There is not a lot of growth opportunity where I'm currently at. I want to find a smaller firm that can still throw around weight and has good people who know their sh*t. It is also important for the firm to be close to the deal - these guys direct invest, co-gp often and if possible. Rarely invest passively LP capital.

In my current role I am already doing what you have touched on and more. Negotiating deal terms, loan docs, partnerships, raising capital, etc.

Current fund ~850MM, they have been raising quite often and are working on a new raise about the same size.

 

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