Considering the hiring season is upon us, I have a dilemma to choose between the two fields. Likely going to be joining a larger firm on the LP side with plenty of deals on either side. I had internships which covered both sides (given they were only a few months) and found that I like both sides and aspects of each. Just wondering what those who have been in the field believe are better to transition into first.
Asset Management:
Pros
- More practical skills to learn on the operations side
- Effective knowledge to know how and why assumptions are made if I transitioned to acquisitions
- Longer-term relationships with construction, PM's, portfolio, etc.
Cons
- Cliche but less "Sexy"
- Fewer deals, more specialized in certain asset types.
- A man of "Putting out fires" it seems
Acquisitions:
Pros
- Modeling wizard (though I understand this will only get you so far as you move up)
- Think like an investor
- Deal hunter, pro-active, possible bonus
Cons
- Repetitive U/W
- More hours (Doesn't scare me, also I say this before I start...)
- Less operational, more high-level knowledge of properties
So, quick advice on this....
The best is one you think you PERSONALLY will do best and excel within. Some people like the pace of acquisitions and the thrill of 'deal life', others want more predictable days and cycles (like you know when quarterlies have to be sent way in advance).
Frankly, where you will personally do best give you best chance for top performance and job satisfaction. That is what leads to promotions, raises, etc.
This is right on.
Some things to consider. I've spent some time in acquisitions(current role too), and I've been asset management(utility player). My knowledge of CRE has GREATLY improved with the stint in asset management/pure finance/reporting. In a way, it is like being able to play a symphony instead of an individual instrument.
But, that is one of the great things about being middle market/institutional light.
I know you want answers from experienced industry players not an undergrad like me, but my dream is to try and get at least a couple of years experience in both areas in the early part of my career. This is not so I can figure out what I want to do but so I can learn as much as possible and build my network as much as possible.
One thing to consider is that it is easy to lateral from acquisitions to asset management. Switching from AM to Acq is usually a much more difficult endeavor (many WSO threads have been created by AM analysts asking how to break into to Acq). Acq will give you more exit ops. If you have the opportunity to go into Acq, I would take it. You can always bail to AM in 2-3 years if you decide the deal life isn’t for you (another good thread to read).
Can't make a bad choice here. 2/2 REPE.
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