UMM Debt Fund offer vs MF AM final round - do I accept and renege?

Received an offer for a UMM debt shop expiring this week; good rapport with the team. Also passed modeling test with a MF (think Blackstone/Starwood/Brookfield) but for their AM team, and have their final round next week; also good rapport. Also have a couple other UMM equity processes but still 2nd round. Ultimately want to be on the equity side at some point, and was wondering if the other potential offers would be worth reneging over (which I personally would rather not do)?

EDIT: Went with debt fund and dropped other places - on balance will be a much more interesting and fun experience.

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Comments (16)

  • Intern in RE - Comm
Jul 20, 2021 - 6:36pm

I would take the debt fund all day. This isn't banking. Nobody cares about the name on your business card

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Jul 21, 2021 - 7:13am

My fund (one of the MFs you mentioned) say it is very hard to lateral to acquisitions early on (within 2-3 years) but after that, if you're performing well and the team like you, they will definitely oblige. Also, interesting you had modelling tests for the MFs, I interviewed with 2/3 of those and didn't have any modelling tests out of university.

Good luck with either choice though - both sound fantastic. 

Jul 21, 2021 - 7:31am

Thank you - I can definitely see why it would be an uphill struggle by taking the AM route to prove myself for an acq role. In contrast, debt investment to convert to equity would be a much smoother process (since I ultimately want to end in equity)? And yes I guess I'm not too surprised on my end, every process asked for a modeling test for their 2nd round - although this was not necessarily one of the harder or longer ones haha.

Jul 21, 2021 - 7:38am

I am not sure how easy it would be but the equity side isn't terribly complicated stuff so if you're keen and have a good name on your CV, I am confident you could. Also, RE debt guys can make the same comp as equity guys, because there is more opportunities for debt floating about

Best of luck

Jul 21, 2021 - 7:43am

Thinking of "UMM" vs "MF" is fairly ridiculous in real estate (I mean, I doubt I or most could even spot the difference.... or care if told). 

So, if you like the offer in hand, take it. Debt funds are awesome places to start, you can do other stuff if you really feel like you must (why is another question).

Is it end of the world to "renege"... not really, but do it based on the actual job! NOT firm name! That is just a horrible way to make career decisions in this space.  

Jul 21, 2021 - 7:06pm

I'd prob go debt fund for my personality of working on new deals consistently, especially if it's a top fund. You'll also get a glimpse at what everyone in the market is doing, where dollars are going and potentially build relationships with outside shops. Asset management is pretty boring to me. I'm currently in equity acq, but did a rotation in debt before 

Jul 28, 2021 - 1:02am

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