What do you know about TPG Real Estate Finance Trust?

TPG REal Estate announced on Jan 9, 2015 the acquisition of a 75% stake in a $2.5B portfolio of high-yield RE loans from Deutsche Special Sits Group (Deutsche retained 25%).

Looks like 11 professionals from DB's Special Sits Group joined a newly-created mortgage REIT (TPG Real Estate Finance Trust).

I'm curious what the consensus on the street is about these guys? Looks like they are growing their team in San Francisco and New York via Select Leaders.

Anyone know about this group, reputation, compensation, etc?

Comments (9)

Mar 28, 2016

I had 3 rounds of phone interviews then a superday there in the Fall for an Analyst position. I didn't get an offer but the whole team is great. It IS 90% DB guys with a few guys from TPG and elsewhere (associates from Tish Speyer and GS).

From what I can tell, they have a great rep and seem to be doing some cool things. Currently a pretty lean team and when I was interviewing they were having their own office built out. Couldn't tell you about comp but I'm sure its slightly above market.

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Aug 8, 2016

Bump looks like they are hiring again any more info?

Aug 15, 2016

They definitely work on cool deals and don't shy away from hairer stuff, however they price expensively as a result and we see them lose lots of the truly awesome deals because of this.

As for the culture, I know someone that was on this original DB team and made the transition to TPG. Apparently they compensate very well, however this is because the place is a sweatshop. People are definitely smart and experience will be great, but don't plan to have a life outside of work (i.e. don't plan vacations, be ready to work weekends and consistently burn the midnight oil etc.)

Jan 9, 2017

Could you elaborate on what kind of "cool deals" they work on?

Are they taking positions in the middle of the capital stack, hoping to clip a high yield or take ownership of the asset in the case of an owner default; are they acquiring distressed loans and REO; or are they simply providing bridge and construction loans?

Trying to gain a better sense for what these guys are looking at on a day to day.

Best Response
Jan 11, 2017

They are major players, so they have the capacity to work on larger high profile deals, particularly high in the stack in a mezz position. They do play in the construction space. Basically, they are opportunistic enough to do all kinds of deals, though they are more yield focused, which is why they are not scared to venture into more complicated and hairy deals so that they can charge at a higher clip or take a mezz position. They don't really make loans with the intention of owning the property like a hard money lender would (see: Madison Realty Capital). It's great experience and exposure. I am not sure if they acquire notes as well, maybe someone else can speak to that.

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Sep 26, 2016

Hi, I have an upcoming superday this week with the team, they said it would consist of a modeling exam and also techincals... Would appreciate any advice anyone could give. Thanks

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Jul 15, 2019

Have a superday with them coming up, any advice or info on what they modeling exam was like?

Jan 11, 2017

bump - seems they're hiring again

Jan 14, 2017

Robert Clayton Dean: What is happening?
Brill: I blew up the building.
Robert Clayton Dean: Why?
Brill: Because you made a phone call.