Post Undergrad - Pension Fund (Real Assets) or CRE Banking - Best Career Prospects?
Hi All,
Wrapping up my final semester of undergrad, and have two offers on the table. Would love to get community input as to which offer will provide the best career prospects and admittance to B-School. Would love to end up at a large lifeco/asset management shop. (MetLife, USAA, Invesco, AEW, Nuveen) in an acquisitions role. Somewhere where they pay is great, and associates have actual work life balance.
Offer 1 - Research Associate at a decently sized pension fund (AZ, TX, UT, WA). Hierarchy is as follows (Research Associate->Investment Analyst-> Senior Analyst ->PM, etc) avg. 3 years between each promotion. I would be doing Acquisitions/Dispositions. Place is unique in that they do direct investing, taking a bottom-up approach, similar to Canadian pension funds. They do not invest in funds/management teams, and I would get direct underwriting experience across all property types. Work week is capped at 40 hours a week. Pay is lower than industry. Hierarchy is flat and upward mobility could be limited, as everyone stays for 20+ years.
Offer 2 - Financial Analyst program with a large bank (Wells, JP, Bank of America) in a city like (Dallas, Denver, Charlotte, Atlanta). I haven't been placed on a team yet, but could include REIT's/Development Shops/Hospitality Finance/Distressed Debt. Starting pay is near $20k higher, with higher earnings at almost every level. If I stay longer than 2-3 years could be labeled as a debt guy. However, I would start my career off going through a great credit training program, and have a large well respected bank on my resume.
Definitely pros/cons to both gigs. Would love to hear from you all, and get your input.
Thanks again.
Best,
Lambfoot
1) 20K at your level is probably 25% higher salary. It sounds stupid and a bit obvious but its easier to make more money when you move if you're making more money now.
2) Three years locked in as a research associate seems rough.
3) Even as an analyst at a bank, you will closer to the deal than a research associate.
4) I've seen people leave the debt space for the equity side but as I've harped on these boards before there is no reason to fear being a "debt guy" there seems to be a systematic misunderstanding of career potential on the debt side of RE. There's all spectrum of risk on the debt side from third tranche mezz debt funds to 50% LTV first mortgage insurance lenders. Plenty of money to be made as an originator.
5) This will sound "bro-y" but you'll want to give up some hours of your life to work in your 20's. From graduation to your early 30's is the most critical income potential generating years of your life. The career foundation you create by the time you turn 30 is more important than any other decade to create higher potential earnings later in life. If the cost is working 20 more hours a week at a bank than a pension company that's the trade off.
Lots of specifics that you'll have to decide on your own but that's my 2 cents
SHB,
Thanks for the quick reply, and for the insights you provided. One hesitancy with the banking gig, is being placed on a less than desirable team. I suppose I would have to cross that bridge, when it happens though.
Some banks also have distinction between roles (credit analyst, underwriter, portfolio manager). I know at Wells after a 2.5-3 year stint top performers become Relationship Managers (sales/loan origination), and if you're not a cut out for it, you're then placed as either a portfolio manager or a credit analyst. JP has a more traditional layout. Not sure which is better. I just know I would prefer not to spend my working career as a credit analyst, with limited upside potential.
Thank you again for the time, and info. I greatly appreciate it.
This job is not your last, you're always going to be on the look out for that next step. You're not limited to the first bank you work for. Dont like what your doing at your current employer? Find a job you like elsewhere.
It seems though you're going into this decision like you're going to work there for the next 10 years. On average you'll work for 3-4 different employers in the next decade.
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