Anyone have insight into what it’s like working on a real estate team at a LifeCo (MetLife, AIG, Prudential, etc)? More interested in AM than acquisitions. Looking for things like culture, comp/progression, wlb.
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I worked in underwriting and then AM for a bunch of years at a couple of the firms listed. I will say working as an asset managers will make you a better originator or underwriter later if you decide to go that route. I always joked that we in asset management fixed the problems the originators created getting the deal closed. You will see the issues in a deal structure and learn how to do better if you were to originate it. Learn how to deal with modifications, REO, internal valuation for reserve calculations etc.
As to comp you won’t make the same as an originator, because many look at AM as the red headed step child. But culture is good. Work 50-60 hours max in beginning and later it’s 45-50. Never going to get rich but great place to learn and have work life balance if starting a family.
Good summary right here - 100% that AM fixes the problems originators create. AM will teach you to underpromise and overdeliver, while acquisitions if you're not careful can get you in the habit of making overly aggressive assumptions to make a deal work. I've seen so many acquisitions guys who will try to push their proformas to the limit even when more conservative assumptions hit the firms benchmarks.
One thing to note though - if you have interest in working in an origination role in the future I'd recommend moving that way within 2-3 years, it can be harder to move that way later on, but you can always switch early and move back later if you don't like it.
Great point by CREnadian as to transitioning out of AM if you want to originate. Get the AM experience than move over. But the great thing is you can now leverage that AM experience when looking to move back to AM, especially during a downturn.
Thanks for the reply. I like the idea of getting into the details of deals and problem solving.
As for comp- when you say “never going to get rich” in AM, I’m turning 30 soon and have starting a family soon. So I’m not looking to work 80 hours a week and eventually make high 6 or 7 figures. From what I’ve seen, all in comp for associate level (what I’m targeting) seems to be ~$150k-$200k, would you say this is accurate?
Yes that comp range sounds reasonable. But I’m a bit older so not sure exactly where associate comp would be. Location plays a role as I’m thinking LA & NYC.
In a major city that's about right, yeah. Smaller shops probably closer to the $150k range.
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Currently at one of the companies you have listed above. I primarily work on debt origination with some loan management responsibilities. No issues with the culture, however I will say that it has a very corporate feel. Comp is good, however as others have mentioned it’s not the top of the market. WLB is strong with plenty of time on week nights to go grab a beer or dinner with friends. I generally don’t work very late unless I have multiple live deals. Lastly, progression is definitely on the slower side given that the senior guys seems to like it here a lot.
Happy to go into more detail if you pm me.
Generally culture and WLB at a Life Co is really good. When I was doing asset management at a life co I was working 40-50 hours per week. Comp for asset management is lower than acquisitions. While I always perceived asset management to be just as important, if not more, than acquisitions as asset management actually unlocks the value, many people unfortunately don’t view it that way. At my life co., AM comp was probably 10%-20% lower than acquisitions and lending but AM lifestyle was significantly better as well. Quite a few people on the team were in at 9 AM and gone by 5 PM.
Firms sometimes miss that borrowers will stay with a lender if the they have a good AM experience and know that the AM are willing to work with them or as another person said “underpromise but overdeliver.” Borrowers may even willing to pay a few bps higher if they know there will not be a hold up getting draws, leases etc. approved quickly. But no matter how great the deal is, if the AM group has made it hard on the borrower they are likely to move to a new lender.
I work at one of the life cos in AM on the equity side as an analyst and am making $140k all-in (have a MSRE). Hours are roughly 45 to 60. Hits 60 to 70 during budget season. Culture is great.
What market are type of market?
office, industrial, mf mainly
How long have you been there for?
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