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What is the ideal path for someone trying to get into real estate private equity?
Share the ideal path for getting into REPE starting from freshman year undergrad. Explain how the paths for acquisitions vs asset management might differ
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Angela’s Answer
I think you should try to secure a summer internship in finance your sophomore or junior year of college. Starting off in Investment Banking in the Real Estate group is often the most common path to securing a Real Estate Private Equity offer. Having summer internships in Investment Banking or Equity Research will be a great way to secure a full-time IB offer, which will augment your chances of a Real Estate PE offer.
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F’s Answer
The ideal path will depend on your interests. Acquisitions professionals source, analyze, negotiate, conduct due diligence, and close deals. Asset managers focus on maximizing the value of an investment by executing the business plan or developing and executing on a new one. There is some overlap and some smaller companies combine both roles into one, but I would focus on getting exposure to one or both through an internship or entry-level job. You're early enough in your career that you will not be locked into one path and many do switch between the two later in their career. In both roles, you're going to be paired with an experienced professional in a support role and how quickly you advance will depend on how quickly you can take over responsibilities. Acquisitions is more transactions focused while Asset Managers are more involved with the actual operations of the asset, leading responsibilities like leasing, CapEx, expense management, etc. To secure an entry-level job, I would reach out through your network, whether it be through school, friends, or family to get to connect with others who are willing to share additional information and insight on these roles and get the word out that you're looking. Online is an option as well though that can be tough. To prepare you'll want to understand the basics of finance, accounting, and real estate through school or an online course. Proficiency with Excel is helpful as that is what many entry-level roles involve. Some schools offer classes or discounts on software like Argus, which is used for commercial assets and could also set you apart for an entry-level position. As you become more senior, you will spend less time on the models and more time on strategy, operations, and deals. If you really want to dig in, www.francemediainc. has free newsletters you can subscribe to for industry news and transactions.
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Andie’s Answer
Hi Marco, I would suggest looking into starting your career at one of the major brokerage firms (Eastdil, JLL, Newmark, CBRE, etc.) on their investment sales team. This will give you exposure to many different asset classes and help educate you on whether you want to pursue a career in acquisitions or asset management!
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Kristen’s Answer
The great thing about real estate is there are so many entry points into the business, and hands on real estate brokerage experience is an asset in a future career in private equity or commercial real estate. I echo the comments above about looking for a job with a commercial real estate brokerage firm. Hiring may be slow right now due to rising interest rates and inflation, but don't let that deter you.
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