Real Estate Investment Banking - Is this is ridiculous move?
Hi all. I'm at an m7 mba student trying to evaluate IBD options, and I was hoping to get anyone's view on Real Estate as an industry group. Most firms direct-hire real estate associates, so you really have to commit if you're interested. I pretty much know jack nothing about investment banking, so can someone please give me the inside info on IBD real estate coverage groups? None of my classmates are interested in this, and it seems like it's potentially really limiting long-term, so would this be a mistake to go for out of the gate?
Real Estate IB background (Originally Posted: 12/13/2014)
Looking for some background on Real Estate IB? What BBs and MM firms have good RE groups? How are the transactions different then what you see in other industry groups? Do you work more with PE firms or REITs? What exit opps are available?
Appreciate any help
Please look on the Real Estate Forum on WSO.
Thanks, obviously I'm new here
Real Estate I-Banking (Originally Posted: 10/16/2007)
I was curious if any of you can give me some insight into real estate investment banking in New York.
Are the hours similar to other i-banking? How about pay and bonuses?
Do the interviewers require you to know the same things?
Thanks!
real estate is just another industry group. the hiring is done the same as the hiring for the consumer group, the industrials group, etc. the comp is the same, and the hours can be equally bad.
it's the exit opps that are different.
REIT has become desperate for capital last year that most of the sources of debt financing to the decision:. Bank of America hopes to repeat its success in the realm of what should be one of the largest companies in the real estate sector this year to help private companies in the press problems public markets. Many expect a wave of initial public offerings of private companies comparable to that following the collapse of commercial real estate.
Several banks on Wall Street and investment were dedicated to real estate groups are good places for someone who has an interest in real estate and investment banking. It shouldn't surprise you that they are very focused on finance groups and look at this field as a category far more to earn money for themselves and their partners.
Real Estate IB - Experience? (Originally Posted: 03/04/2008)
Is there anyone on this board with experience in Real Estate IB? I am looking to PM someone with some specific questions.
Thanks.
i'd like to get some info as well.
Send me a PM, maybe I can help you out.
i'm also interested...it's most likely what i'll be doing this summer so any info would be appreciated
I work in PE and specialize in RE...post your questions here
Curious, too. I heard from my friends that once I get into RE IB, I will be stuck in RE forever. Will i be able to move to other kinds of PE? Also, say a top RE group, like DB or MS. Would it give you a better skill set/experience than non-top M&A or other industry groups in places like CS/UBS/DB? Thanks!
what exactly does RE IB involve...what types of deals are done? building acquisitions and stuff? junkbondswap, would you be able to provide a general overview of what a RE IB firm does or RE PE if that's all you can comment on? and if you can, any books or websites or anything to check out before starting a summer internship in order to get a solid foundation of the basics and such. thanks.
What are some other ways to get into REPE than working in a real estate coverage group?
Opinions on Real Estate IB? (Originally Posted: 03/16/2007)
Hi,
I've worked in real rstate throughout highschool and college and am now going to intern at a BB Real Estate group (IB). How is real estate IB and is it thought of highly? (My interest is to work in PE and one hopefully start my own PE group).
No comments on real estate?
/bump
I wanted to do something similar, work in RE IB, then shift over to RE PE hopefully after a couple of years. I'm not so sure how that will work out now.
Anyways, I doubt you're gonna get any advice regarding RE on this board.
Depends what you're interested in doing after you finish as an analyst, as well as the firm you would be doing it for.
If, like Seanc, you desire to go into RE PE at some point down the road, then it's a great option, and besides the big names like Blackstone, Carlyle, Warburg Pincus, and Apollo, there are countless smaller shops for whom there is no better candidate than a former RE IBD analyst. However, if you want to go the traditional PE route, other industry groups will generally lead to more exit ops, the best being Sponsors, and being placed into a product group doing M&A or LevFin would also be much better.
Furthermore, imo, the best RE groups for an analyst are MS, Greenhill, and GS in that order. GS used to be far better, but MS has been investing a lot in its RE group, and the former global head of RE banking at GS, Richard Lieb, left a couple years back to go to Greenhill and took a couple of senior guys with him. Also, as I have mentioned before on a couple of other threads, MS RE has their analysts/associates work with both their M&A team (where they are the #1 advisor in the industry), and their RE PE arm (MSREF, which is the largest RE PE fund ever raised), which leads to great exit ops with RE PE funds, as there are not many analysts who actually get into RE investing right out of undergrad. In addition to the top three, BofA and Bear Stearns also have outstanding RE practices, but then you would really be limiting your exit ops to RE, as you couldn't benefit from the brand name of MS/Greenhill/GS.
I'm heavily considering PE, RE or not, as my future. All of my experience is in RE and RE PE. I would love to work and some day manage (high hopes I know) a BB RE PE branch but of course that's way long term. Although nobody on the boards says so, Lehman's real estate group is also thought of pretty highly, at least at the PE firm I worked at (although it wasn't a Blackstone or anything but still a stand-up shop).
I know Lehman Brothers has a pretty reputable RE Investing arm, Lehman Brothers Real Estate Partners (I think they have a one or two billion dollar fund), but I do not think that they are especially strong in RE investment banking. Could be wrong, though.
That's very possible. I know that the principals in my fund spoke real highly of people that I believe are linked to PE but used IB name. I know LEH's PE and IBD RE work really close together so I wasn't sure how to separate the two. I think in RE as long as you have the RE experience in a BB you're better off than general IB'ers due to the differences in RE versus other types of IB or so I've heard.
DB has one of the best, if not the best RE groups on the street. Top 3 for sure
Someone pmed me and made some good points, so I thought I should post the transcript between us:
> You mention GS Greenhill and MS as the top RE IB shops, with B of A an d Bear getting some honorable mention. > > From what I gather Merrill is pretty solid in RE IB, as is Deutsche Bank - do you agree with that? Merrill was the sole advisor for EOP, and the sole advisor for SL Green on the Reckson deal - DB is also considered top notch... ??
You are correct: Merrill Lynch is very good, and I definitely should have noted them. However, imo they are still not in line with GS, and definitely not with MS. True they did advise EOP, but then GS, MS, BofA, and Bear all advised Blackstone on the sell-side of the deal. And yes they were also advisors to SL Green, but then Greenhill and GS advised Reckson on the same deal. Also, there are other big deals that some of the other banks listed were sole advisors on (e.g. GS for CarrAmerica), and if you just look at the league tables over the last ten years you will see that MS dominates the sector. But still, my mistake, and ML should be listed as a top bank in the thread.
And as for DB, I should have put that I was only talking about the best banks for advisory services, not financing or CMBS. For US RE M&A, I would not put them up with the other banks mentioned.
Interesting. That's a lot to consider overall.
Very interesting, what do you think of Warburg Pincus in terms of RE PE ?
Aside from being pretty international in scope, I don't know much about them. Maybe Prescott might.
Warburg Pincus is an interesting case. They have done a number of deals in the real estate sector since the early nineties, had some spectacular successes (Pacific Graystone/Lennar), and, to the best of my knowledge, always undertook wise projects which would go on to see some seriously high IRRs.
However, until recently, all their RE investing was done using finances from their traditional PE funds, and thus they didn't really have the dependable capital base necessary to do anything but joint ventures. It is due to this reason that they never really took off the way Blackstone or Carlyle did, which both began raising real estate opportunity funds separate from their others many years ago.
That changed late last year when, for the first time, they closed a $1.2bn fund dedicated solely to RE investing. As this probably gives them ~$5bn of purchasing power, expect them to become a huge player in the future.
That's interesting. What are your opinions of Mezz PE and do you know any major players?
I am very interested in RE IB, currently, but what happens to those who decide after two years they don't want to stick with? I am talking about people who don't want to stick with RE IB or even go into RE PE. What do these ex-analysts go on to do? What sort of exit opps do they look for? REITs? RE HF position? anyone?
From what I've heard, you pretty much get stuck in some sort of RE based position. People claim that the skills required are somewhat different. However, I don't think it's IMPOSSIBLE to get into regular PE from RE, just uphill like nontarget versus target.
RE IBD analysts are the most sought after in all of real estate. If the industry is something you're interested in, you'll have no problem going to a REIT, RE PE/HF firm, or a developer.
This is a pretty good analogy. RE financial analysis is the most unique among all the industry groups, and thus, while you will have a leg up over everyone else if you want to continue on with your career in RE, you will be at somewhat of a disadvantage if you want to go into another IB industry group or go into traditional PE, all else equal (such as firm reputation/overall quality of groups at the firm). Still, definitely not impossible.
Other big RE PE funds include the banks: MSREF of Morgan Stanley, Whitehall of Goldman, Barrow of Greenhill, DB Real Estate of Deutsche Bank (although their funds have been very large, has had horrible returns over the years and they even had to freeze their largest fund last year; personally do not think they're that good).
In terms of independent RE PE shops, there are many more than most people think. I could hardly begin to name them all. I will name some that I feel belong in the same league as Blackstone, Carlyle, etc. though: Lone Star (this one is huge and has extremely consistent returns, from what I've heard; just raised ~$6bn for their latest fund) Tishman Speyer (not just RE PE, but if you're really into RE, no better place to be) Ramius Capital (RE HF) Again, there are many others (e.g. AXA REIM, Hypo, Pramerica REI, Liquid Realty, etc.), these are just a few that I personally hold in high regard and know a little about.
Okay, well what are some of the common exit opps for re ibd analysts?
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