Career Choice: Real Estate vs Investment Banking
Hey guys
I am currently faced with a tough decision.
I've always dreamt of a career in IB in London. But as you know, competition is quite fierce and I had little luck thusfar.
Since my UG degree is unrelated to finance, I applied for a MSc in Finance at LSE and RSM. Unfortunately LSE rejected me, but I did get an offer from RSM for this year's intake.
However, I have recently been offered a job in real estate valuation for Knight Frank in Romania.
Do you think that working in real estate would put me in a good position for a career in IB? Or should I pursue my MSc in Finance at RSM and try to secure a grad scheme for a big company afterwards?
Thank a lot guys.
Real Estate PE vs. Banking (Originally Posted: 01/22/2013)
Would anyone consider working for Blackstone's Real Estate group over banking? Ultimate goal is to get to a top B-school or move into corporate PE. What is the shorter route, IBD or REPE?
Thanks in advance.
Also, what is the pay like at a top real estate place like Blackstone? Is it competitive with pay on the sell-side? with corporate PE at the same firm?
Those that I know at BX's RE group all did IBD prior to joining them...
SA interview coming up with them. Is the prestige on par with corporate PE at BX?
Prestige or w/e shouldn't matter. If you really want to be in real estate it would be a great place to start.
Didn't you just do one of these "I have so many offers--what do I do?" posts two hours ago? Will Hunting would absolutely hate you.
Based on your goal, do IBD.
Only do real estate if you LOVE real estate. Once you're in real estate it's very hard to move, and the move from REPE to PE is extremely difficult (do a search).
Thanks for the insight. How does the pay compare to corporate PE?
BX REPE has 122 people managing $56b while PE has 120 people managing $50b. If AUM/headcount is any indicator, the compensation levels should be relatively the same?
I'm not in RE but from what I know, you can't compare directly by AUM sometimes between different shops and strategies. I'm sure BX REPE is top tier, but I know some REPEs get 1 and 10, not 2 and 20.
Also, REPE depends on acquisitions vs. development. Acquisitions usually get paid more.
And please don't base your job search on entry level salaries. If you hate real estate, its going to suck for you long term.
Finally, if you're entry level, most PE analyst positions pay less than banking, and I would think especially REPE analyst positions. Associate (post-banking) salaries are a lot different than analyst positions where you're usually getting banking base of 70k + a lesser bonus. Usually this is because you're not adding as much value straight from college and your hours are better than your fellow bankers.
Does the above also apply for intern positions at a RE fund more on the investment mgmt side? Once you do any RE experience even though the work you do is buyside with lots of analytical skills, once you go RE you never go back?
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