Special Situation Groups at BBs

Hey everyone

I am currently a rising Junior at university, and looking to enter the real estate field next summer. I'm very interested in the debt side and I've had some calls with alumni at different banks doing commercial real estate finance. One suggested that, due to the downturn in the economy, I should contact people on 'special situations' teams at banks. I've done some research on WSO, yet most of it seems to be about S+T rather than CRE. Nonetheless, I am extremely interested, and from what I've read it is very fascinating.

Would you guys be able to shed some light on what these special situations teams do at BB banks? How prestigious is this compared to traditional BB lending? Is it possible to break in straight from undergrad? What kind of exit opportunities does this provide?

Thanks guys.

 
Most Helpful

I‘d echo that. There is some info on WSO and online about the distressed/special situations S&T desks on the street, if you can find it. Some banks are known to absolutely dominate in the space (DB, Citi, Barclays, BAML) – but distressed is a more murky part of the market where info is slim and the best trades are the ones you never hear about. It’s more of an investor-like or trader seat depending how you funnel into the desk. Each bank is different, but given the macro backdrop, the distressed and broader restructuring space will continue to be interesting for many years to come. Since you’re in the secondary market on the S&T side for corporate debt, you’re typically not lending balance sheet the same way primary in CRE would be. Certainly prestigious and unbelievably rare to begin your career in this space.

There are some CRE Special Situations desks that are more distressed focused, won’t pretend like I understand the space but to my knowledge it’s just lending balance sheet for fat coupons where situations are challenged. I’ve heard JPM/DB are massive here but don’t quote me on that.

EBITDA rules everything around me
 

Also interested. Would this be more attractive / prestigious than traditional IB?

 

Do what you want to do man, this fixation on prestige is so strange to me. Find what you’re interested in and go from there. You should be able to formulate an opinion for yourself after reading about it when you think about how it compares to traditional banking.

EBITDA rules everything around me
 

My bad for coming off like a total douche there. Phrased it horribly, but the reason I asked is that I am currently interested in IB and RE. Think this is an awesome field. However, it seems extremely specific and wondering how it’s viewed externally. With IB I like how the prestige, as shallow as it may be, provides a ton of different exit opportunities across industries. Although completely different, was wondering the prestige of this form of distressed credit to understand the type of exit opportunities. Apologize for coming off as a complete schmuck

 

No. Not anymore at least. But do what you're interested in

 
thetrickyricky:
I am almost positive he said special servicers and not special situations. These are the people that are basically going to be dealing with CMBS loans defaulting. Going to be a huge demand in this space very soon.
special sits is real bitch. if you can get a job on the desk and you like real estate DO IT!!!! goldman: "SSG invests the bank's money in a diverse set of asset classes, from stakes in mid-sized companies to credit and REAL ESTATE around the world." Deutsche: "real estate special situations" https://www.linkedin.com/in/pankil-doshi-a455292/ https://www.linkedin.com/in/christopher-harris-3a223930/
Macquarie: "special situations real estate team in the New York office"
 

Eum sit velit ipsam repudiandae amet similique. Sint rerum quia quia voluptas in nobis earum. Ex sint saepe aut vero accusantium maiores occaecati. Voluptates dolores quae dignissimos debitis magni voluptatem. Commodi enim sit enim beatae voluptates sed quod magni. Voluptas repudiandae fuga assumenda quo quis quo. Optio qui dolorem maiores explicabo.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”