Is anybody familiar with the kind of work an entry-level real estate analyst at an insurance company (such as northwestern mutual) would do, compared with a real estate group in another asset manager like RREEF, PREI etc? Basic job description is supporting the investment underwriting process, working with producers to prepare deal submissions, and providing analytical support to RE portfolio.
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I'm an analyst at a life company right now. It depends on what part of the business you'd be in. Most life companies are big into commercial lending, especially in the current economic environment since cml's offer superior yield. If you were in the commercial mortgage lending side, you'd be doing a lot of valuation work in Argus and or excel on the various potential mortgage deals that your group would receive daily. You would assist your superiors (the loan officers) in valuation, quoting the deal, correspondence, etc. If you quote and win the deal ,you'd assist with all aspects of the getting the loan documents prepared, all the neccessary documents from the borrower / owernship of the property, etc. I'm not sure exactly how northwestern mutual works, but that's pretty consistent work among life company analysts (of which I am one).
Northwestern Mutual Real Estate (Originally Posted: 04/01/2013)
I am looking for information on NMRE. What are your thoughts on starting out at a life company? I think that you could potentially see some big deals, but in general I have heard these firms tend to be conservative given their nature. Any insight would be great.
Thanks.
Insurance companies usually follow a vanilla core strategy. Not familiar with their division personally.
Can't speak for NM, but we did a deal with Prudential last year on a RE project. Yes, these guys are ultra conservative. I remember the meeting we had with them, and I fell asleep as the guy from Prudential talked about what they specifically look for when acquiring RE.
I know several guys at NM. They seem to like what they do but it doesn't sound all that thrilling. The analysts all start for two years in Milwaukee, then get placed in a satelite office after. You get to work in both debt and equity which is good, but it's all core stuff.
Depends on your goals, their analyst program would be a good foundation for a steady RE Investment career. Moderate salary with consistant deal flow
I want to end up working on exciting value-add or opportunistic deals, but I do agree in that the analyst program would provide a solid framework.
I expect it will be very difficult and unlikely to transition from an analyst program at a lifeco to a value-add/opportunity fund. There are too many other sources of candidates that will be considered ahead of you. Lifecos invest in real estate to offset their death benefit and annuity obligations, so as has been stated above, they are looking to put out long-term money for core returns. Real estate is really just a fixed income alternative for them (and they are buying RE like crazy right now because a 6% return and inflation protection from top-quality real estate feels pretty good when Baa bonds give you 4.5% flat).
These lifeco/pension funds have been increasing their RE allocations b/c bond yields right now are trash. I don't see the bond market recovering anytime soon, which I believe will lead to these guys being even larger players in the field and possibly even taking on different strategies (not that they should, I just think its inevitable). When the Fed begins to tighten and the FF rate rises, shouldn't bond prices fall? Making them a less attractive investment vehicle for a longer duration?
I agree this wouldn't be a great place for a direct transfer into a value-add fund by any stretch. But couldn't this serve as good prerequisite experience to position himself to make a lateral move into a REIT, which would then allow him to make a move into the opportunistic arena?
Completely agree but based on my experience so far it seems even more difficult to get into one of those shops out of undergrad.
Northwestern Mutual does invest in development. Not talking about build-to-suit either. I know this for a fact.
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