Hi everyone,Everything is in the title. I have been working since 3 years for a well known developer but do not enjoy it. While the culture, the team and the deals we have been closing are great, I have a more financial background and would ideally like to join a more « finance orientated » team. I benefit today from one offer but I am also starting a process into what WSO call a mega fund. My options are resumed below:
1) accept one offer from a very well known secondaries team (think BX Strategic Partners)
2) wait and pass all the interviews for the MF to work in their acquisition team (primaries investments)I would greatly appreciate any advice from you guys.
If you don’t want to do secondaries don’t do it. Don’t move for the sake of moving. Wait for what you want.
Hey pudding, well received. Secondaries seems to be an interesting market and I know that the team is also working on co investment and separate managed accounts, which involve a bit of primaries investment I believe.
I am not too familiar with the matter but it seems like a good opportunity to develop new skills. If one finally does not like it, would it be very complicated to come back in a primary team?
You can always move around. Just tap your network.
Thanks for your advice and your reactivity. You seem to be pretty familiar with the matter. How would you defined working for a secondaries team? Do you know what it involves and how are they working on a day to day basis?
I would define it as buying secondary positions, as in, positions for sale by LPs that want to get out of their investment early. What are you doing in secondaries daily? That’s going to depend on what seat you’re sitting in..
Bump
So, a few thoughts...
1. You must not be totally jazzed on doing RE secondaries, a VERY finance oriented area, with RE aspect very secondary (pun intended), otherwise you wouldn't post this... you would just accept the offer. Personally, I think I'd find working on secondaries platform boring a sin, along with most finance oriented stuff, I did this (finance oriented role, not secondaries per se) for a few years and hated it. Love being in true real estate company, but this is all highly personal of course.
2. What exactly is your role in development or on this team? I'm not totally following the be more "financially oriented" part, is it like just project/const. mngt you are doing? I ask as I am kinda a loss about what you actually like/dislike, and thus what is best to do.
3. Assuming you are okay with staying in current role/firm for some time, no harm in declining the offer, more can come. Still, the vast majority of the flow of people leave the MF world for development rather than vice versa. So, be sure you really understand what you are looking for. Some much much prefer the MF acq world, all are different, but I'd make sure you really know what you are getting into.
A final thought/question...
3 years is enough time to get some seniority and know what is going on, but not a ton of time in the industry on a relative basis. So, I am little inclined to throw out the observation of "first jobs suck". Meaning, entry level at anything is lousy, takes time to progress above and beyond (and/or get good at it to where you like). Generally, this hopefully happens by end of year 2 and def end of year 3, if not, I highly recommend making some changes.
The above leads to a cautionary statement.... if you "lateral" (especially at 3 yrs), you could actually be "resetting" your career not advancing. If you are really "jumping" fields and want that for long-term, can be totally worth it. BUT, you may be repeating the "first jobs suck" part of life (esp. at a MF). In general, I'd advise a 3yr person to only move for a promotion/advancement meaning upgrade in title/pay/role/responsibilities. This is far from a hard and fast rule (many reasons/instances to go lateral or even downgrade), but I think it is a first principle to be considered.
Hi Redever, many thanks for your precious advice. Like every of your post on this forum, your thoughts are very helpful and structured, this is much appreciable.
1. I am particularly happy with the offer because the fit with the team has been great so far, and the team is highly recognized in its sector (few actors are top players in secondaries if I'm right, I believe they are principally BX, Partners Group, Metropolitan Equity now under BentallGreenOak flag, and some others). However, you are right, I am not particularly familiar with RE secondaries, which worries me a little bit about the day-to-day tasks and achievable career path. Lastly, I have been thinking a lot about lateralizing into a MF to reinforce my resume, wait 2/3 years, pursue an MBA, and transition into REIB.
2. I am working both on the acquisition side with a huge emphasis on development. The team wants me to be very implicated with the development side and makes me work a LOT on plans, design, and so on. Hence, that's why I mentioned the "more financially orientated role". I like Real Estate but I am more interested in returns and RE as a way of making money rather than developing a beautiful [multifamily/logistic/office] space in X/Y/Y area. Does that make sense?
3. Interesting fact. Do you know why people are more inclined to move from MF to development rather than vice-versa?
On your caution/question. Great thoughts again. to answer you properly, the MF is offering me to be an associate rather than a senior analyst at my current firm. They are also paying c.15k more (basis) and 50% more (bonus). Regarding responsibilities, they want me to manage deals from A to Z (modeling, memo, due diligence, interactions with capital partners, and so on). It sounds too good to be true but who knows. The team is pretty small so I should have a lot of exposure to MDs, which is also I believe a good way of developing powerful relationships.
I would be pleased to read your answer and develop further if you are keen to answer again. Many thanks!
So, first, with the added detail on the secondaries offer.. sounds like it passes the higher/better test. Thus, no issue there (in fact, GREAT job in getting offer!)
Responses to the other:
1. The whole "secondaries" world is new, I remember firms trying to start this back when I started in the industry pre-08, they all failed. Now it has become more common as big name firms really took an interest. TBH, I know very little on who leads/lags in this field. That firms like BX and BCO are super legit, so even if they give it up, you will easily transfer internally or elsewhere. See no risk if a legit firm, and maybe a huge, very lucrative opportunity. Will note, seems like a very long winding road to REIB, which also is usually the opposite flow (meaning people go from sellside to buyside 10x more than vice versa, but again, some do it, won't be the first).
2. Yes makes sense, and the heavy analysis of fund and financial structures required for doing secondary transactions may really fit your desire (I'd suspect valuation would be biggest part). Fund/product development, fund management, and general financial structuring is a whole field, you may really like it. You may get board with it (I did..), but still, totally awesome experience. Modelling a new fund/business line is really cool (I got to do very early in my career) and the start-up/initiation phase is really interesting. Clearly, the secondary deal is different, but that is still a structured fund to it self....... Given your statement, I'd think hard before turning down the offer.
3. Two reasons.. MFs work analysts and associates to death (shitty work envrions in many). And, financial analysis, spreadsheets, and just "deal heat" gets boring/old after awhile (at least for many, not all). So, people just find more enjoyment in "developing a beautiful MF/IND/OFF space in XZY area" than moving blips on a spreadsheet around. This is personal, but many see "development" as the pinnacle of the real estate industry (I am jaded/biased of course). To be fair, I am in development, and I get reached out to by people in equity buyside roles who want to switch. Those in development wanting to go to equity/invst mngt, won't call me. Maybe more want to do it than I realize (I doubt it tbh).... That said, going to MF is whole other issue, only place I see that popular is WSO tbh. People wanting to leave MF, all the time in real world.
From my understanding of what the "secondaries" market is, you're going to be looking at deals with a lot of hair on them. Which if you're interested in primarily finance it could be a really cool opportunity, you'll see interesting structures and deals that are more financially complicated than a vanilla core office acquisition. And like redever said, it can be very lucrative. Being able to make sense out of and capitalize on a deal that works but is just too involved for most people usually means you'll get rewarded for your effort.
I’ve been having the same issue. Bounced around a few places, never a good fit. Job is not challenging and compensation stinks compared to the hours. Sometimes I think I should just fuk it and open up a dispensary, invest in Bitcoin and create an NFT. All at the same time. These a holes seem to be making more money and enjoying life much more than I do. P.s: I’m not a pothead.
I got you. Why did the places you bounced around weren't a good fit? agree on compensation vs hours... particularly when the firm cut bonuses for COVID reasons but still is raising several multi-billions JV all over the world and executing deals at the same time. I wouldn't invest in bitcoin but I would love to launch my own business. Unfortunately, I am pretty much risk-averse and don't want to lose a cool gig and risk it all!
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