Career Advice/Next Move
Hey everyone,
Wanted to solicit the forum for some career advice / what I should do next. Some context:
I’ve been working for a small, multifamily REPE owner/operator (based in Southern US) for 2 years now as an acquisitions analyst. The firm hired me entry-level (after being laid off from my first job 6 months in at an institutional lender due to COVID) when I had minimal finance/valuation knowledge (econ major) but over the past two years I’ve learned the basics of valuation/modeling (underwritten ~200 assets) and have coordinated the closing of ~4,000 units worth of transactions. Things were really busy the first 18 months on the job but have slowed down considerably the last 8 months as a result of capitalization issues stemming from diminished investor appetite and the cost of capital increasing. Basically, I’m really bored but I want to learn more. Furthermore, I feel like I’ve hit my limit as to what I can learn here and after asking my superiors when I will be promoted and what I need to do to receive that promotion, have received nothing in response. So I kind of feel like I'm spinning my wheels.
There are a few things I do know that I want moving forward: 1. I want to gain a deeper understanding of finance as this is something that genuinely interests me 2. I want access to more dealflow 3. I enjoy private equity/acquisitions/dealmaking and would be interested in staying in real estate
With all that, I was wondering if anyone could offer some advice on what they would do/how they would look at this situation. There a few paths I’m currently mulling over:
- Taking a year to get an MSF while interning at a firm in the city I’m studying in while also networking/recruiting (not pumped about forgoing a year of income but would consider it)
2. Try and take a job as an analyst at a more institutional acquisitions shop/fund (effectively taking a step back) in order to gain a deeper understanding of underwriting across asset types and learn the processes of working at a big shop.
- Stay at my current shop and independently learn more about finance/valuation that I didn’t learn in college (i.e. Online courses, etc.)/hope things pick up
Long post but appreciate any and all advice! Thanks.
I think no matter where you go right now deal flow will be slow. Major institutional shops are defaulting on loans and are also pencils down for now due to the interest rate environment. I also have not seen a ton of openings at these large shops and with the way things are going (layoffs, economy) even if you got an offer today you could be laid off in less than a year depending on where things are going.
Seems you're in a really good spot in terms of UW experience and I wouldn't risk that just because it's slow right now. That's everywhere, I also don't think you need an MSF to get to a larger shop as you have good experience and that is what matters at the end of the day, name is somewhat important and helps.
I think a promotion may be tough as firms are even laying people off - you sent them an email/asked to talk and they didn't respond at all? In today's environment it is more asset management work, might as well stay at your current shop for 2.5-3 years and really have a strong stretch especially after your first role of 6 months.
Basically stay in your current role, people coming out of Masters programs are looking for your spot and can't get it let alone asset management roles.
Great advice. I was going to suggest OP help out in asset management but given that the firm is MF focused, there probably isn't much to be done there.
For OP, I would suggest you follow your 3rd option. Specifically, enrich yourself independently if you're not getting it at your shop (right now). Take some modelling courses, underwrite market deals for fun and try to get creative, start venturing out to do your own deals, etc.
I agree with Anon1235 in that deal flow is going to slow regardless of where you are. I would think you should be able to lateral to an institutional shop without taking a step back, though, it sounds like you have good experience. It's not like you have to discount the amount of underwriting you've done because your resume isn't blue chip, UW is UW.
I know you said you want to stay in PE/acquisitions, but if you really want more deal flow and more exposure to a variety of assets, you might want to try moving to a debt shop, by the nature of the job you see a lot more opportunities, though you spend less time on each one (is my understanding). It's not a bad gig to sharpen your skills more before hopping back over to the principal side.
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