UK CRE path?
Hi, I'm currently an undergraduate in the UK studying economics and finance and was wondering how to break into CRE in the UK?
I understand common pathways to RE private equity are from IB or brokerage. I like the idea of working in a commercial real estate brokerage but am finding it difficult to find jobs or firms. Most job searches just yield agent jobs.
I was under the impression that entry level roles would be junior investment analyst roles, but when looking at jobs online it seems all of these roles as junior analyst in investment or acquisitions etc. Require 1-3 years in CRE or IB. So where exactly is the pathway? What job can I get out of university that will eventually allow me to climb the ladder into these jobs?
Are there any grad schemes in the UK for CRE? Some advice on firms, pathways, how to break into CRE in the UK specifically would be really helpful.
Would it be useful/essential to do an MSc in real estate?
Thanks!
Hey DreJ, I'm the WSO Monkey Bot and I'm here since nobody responded to your topic! Bummer...could just be unlucky but one of these topics will help shed some light:
More suggestions...
Hope that helps.
Route 1 (Most common): Do 2 years in IB and then transition to REPE. It doesn't matter what IB group you are in, the valuations skills are what is necessary. The people who go down this route mainly exit to mega funds (MF) like KKR, Blackstone and other opportunistic real estate players (Brookfield and the like). (Starting Pay: £50-70K GBP + bonus; Hours per week: 70+)
Route 2 - Work at a brokerage/Advisory firm such as CBRE, Savills, Cushman Wakefield JLL etc. (Starting Pay: £27-30K GBP + bonus; Hours per week: 40) on their graduate scheme and become RICS qualified. These advisory/brokerage roles provide a very good training programme as grads get rotations in a number of seats (investments, leasing, development etc.). Once you get RICS qualified you can then look for these investment analyst roles at investment managers (Fidelity, Blackrock, Schroders, LGIM, LaSalle IM) and REPE shops. Those who go down this route mainly exit to core and core+ funds rather than the opportunistic real estate players mentioned in route 1 & 3.
**it is worth noting that some of the brokerage firms have investment management divisions like JLL LaSalle IM, CBRE GI, Savills IM which is similar to going down route 4.
Route 3: Get a REPE job straight out of undergrad. This can be in the merchant banking/AM groups of banks (GSAM RE, MSREI, JPAM) or can be at MF REPE (KKR, Blackstone etc.) The individuals who get these roles have several IB and RE internships under their belt and would know how to pass/do a reasonable modelling test. However, those with little previous experience can work for the RE AM arms of BB through a spring week and convert to a summer internships and from there, convert to a FT position. (Starting Pay: £60-75K GBP + bonus; hours per week: 70+)
Route 4: Work in an Investment Manager like LaSalle IM, Schroders, Fidelty, or a pension fund (CPP, PSP) out of undergrad. This route is similar to route 2 as you get the option to become RICS or CFA qualified but like route 3 you are directly focused on real estate investments. The trouble with this is that not many investment mangers have grade real estate roles. The majority expect you to transfer after you have completed route 1 or 2 first. These investment mangers mainly do Core, core+ and value add investments. From here you can go to an opportunistic real estate player like KKR, Brookfield etc. The firms I mentioned on the outline of route 4 however all offer real estate graduate schemes. (Starting Pay: £40-75K GBP + bonus; hours per week: 40-60)
A Msc in Real Estate Finance is not necessary unless you are coming in from a completely different industry and want to pivot into real estate. Some MSRE (Masters in Real Estate) programs are also beneficial if you want to pursue route 3 and get a REPE role straight from school though.
Currently working at an RE Debt fund in the US. What's the best way to transition to work in acquisitions or more of an opportunistic fund in Europe? Looking to move to UK, Switzerland, Austria, or Italy.
You already have real estate debt experience so a transition to an opportunistic player in their debt team would be easier than a transition to an acquisitions role at a similar fund. With regards to moving to a debt role at an opportunistic fund, I would start looking hitting up recruiters like Dartmouth, Colbalt etc. and looking at current openings at these fund websites. I have seen guys go from LaSalle IM debt to Starwood Capital RE debt, so the jump to an opportunistic fund in RE debt is definitely possible. Also, reach out to alumni and friends of friends you may know at these funds. With regards to an acquisitions role, the process is similar but you may have to drop to a lower title e.g., Associate to Analyst at a MF or you can go to a less prestigious fund like Aviva IM, LGIM, Schroders etc.
https://www.wallstreetoasis.com/forums/from-real-estate-debt-to-pe
The above thread has some useful info.
At a Lifeco in US. Would it be smart to stay a while and get experience then move to a better Debt team or Acquisition team and then target positions in Europe?
It depends on your end goal. If you want to switch from RE debt to acquisitions, then try get acquisitions experience ASAP. If you want to move to another RE DEBT team, just stay where you are and learn as much as you can. If you find another RE debt role with higher pay and good WLB, then I would take that also.
This is a really great write-up! Thank you for this. So basically, I did an internship at a small investment fund (non-RE) last summer, but then realised I wanted to go into CRE. I realised IB isn't really for me, so over the last month or so I've been trying to do the 2nd option you described. Ive applied to all the big names but applications are not going well at all - and have been rejected from most at the first stage - purely based off CV. My thinking is that this is due to lack of a RICS-accredited degree as well as a lack of property-relevant experience, since my CV is more finance-based.
I've come to realise from LinkedIn that a large number of the people who got accepted to these grad schemes in previous years have master's degrees in real estate from Reading,Cass,LSE, etc.
Anyway, since I failed this year, my plan is to go for a real estate finance Msc and try my luck at these schemes again next year, as well as try to get a CRE internship this summer. Hopefully this will give me the upper hand. Do you think this is the right plan? I'm just starting to worry, what happens if I finish my master's and still don't get any of the grad schemes next year, then where is my way in?
Thanks again for all the help. If you have any tips on interviews, conveying interest in property, how to land the grad schemes, or how I can work on myself over the next year to prepare for next year's application season, it'll be greatly appreciated.
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