What does AM with a LifeCo/bank entail?

Hey all,

What is AM like on the debt side? Is it boring as shit and just making sure your designated portfolio of loan payments are coming in from properties running as planned?

Comments (14)

Aug 8, 2017

Well a typical monthly AM conference call would be:

Debt Side: "How are things going"?

Equity Side: "Where the fuck are my returns!?"

GP: "um, I'm going to have to call some more capital"

    • 4
Aug 8, 2017

What is the difference between AM and PM?

Aug 8, 2017

I'm sure it differs among firms, but I believe AM is more property level/business plan management whereas PM is overseeing the entire firm's portfolio/capital raising (fund level) side of things.

For example, if capital improvements on a property are overbudget, an AM will step in an manage the problem.

If the firm is going out to raise their next fund, a PM will help prepare pitches/address investor questions on the firm's performance.

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Aug 9, 2017

Correction for equity side: "Why did I ever choose to invest in this project, I have no control. Risk is scary. What should I do? Where are my rosary and worry beads!?!?"

Best Response
Aug 8, 2017

Most life companies have loan servicers or a network of correspondents (HFF, Berkadia, Midland, Northmarq, just to name a few) that take care of things like payment tracking, UCC renewals, insurance renewals and financial statement collection.

Therefore, the job generally is to handle borrower requests (lease approvals, SNDA, loan assumptions/transfers, payoffs, etc.) as well as general asset surveillance (usually yearly inspection review/financial statement review, guarantor net worth/liquidity and covenant testing, waterfalls/cash management, etc.). At my life company, Asset Management and origination go up to the same team lead, so we actually help with underwriting, negotiation of loan documents and closing of loans. Also, if a loan goes into default, we handle the workout/foreclosure process. At my old company, the origination, surveillance and closing groups were separate and people didn't cross over.

Personally, I enjoy the role because I'm the connection point to everyone on a deal - borrower, origination, legal, portfolio management, insurance, accounting, etc.

@CRE once said something along the lines of, 'nobody pays your 200k a year to play in excel and run ESRI all day'. and @prospie once said something like 'nobody at john hancock drives a Maserati." Every life company is a little different, but generally speaking, this is probably one of the few jobs where you can get paid 200k flat, spend 80% of your time in Excel/looking at market data/shuffling paper, and drive a Maserati if you want.

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Aug 8, 2017

Do you plan to stay in your role? What exit ops for someone on the AM/PM side in lending? Do you just move up the ranks?

Aug 8, 2017

Over my career I've done a little bit of everything - appraisal, servicing, PM, AM and origination.

Honestly, I'm pretty happy where I am right now. I'm 32, like my job, have good work-life balance, and make good money. I'm not going to be Aby Rosen or James Irvine, but I made my peace with that a long time ago (and it was never my intention).

As for exit ops: as I said, debt AM is basically the center point for a deal. You end up becoming a jack of all trades and getting to know everyone because that is the job - handle whatever problems that come up concerning the asset. When you decide you want to exit, you pretty much know everyone, so it is up to you to press your network, get the interviews and sell yourself.

Want an origination job? Sell the modeling and finance work behind the portfolio surveillance/monitoring that happens on your portfolio.

Want PM? Sell the fact that you are already familiar to the assets of the portfolio so jumping up to a corporate/fund view will be easy.

Want to move to equity? You know tons of borrowers so call the clients that you have good relationships with and have impressed and let them know you are looking.

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Mar 11, 2019