Real Estate Investment Banking
Investment banks help companies raise debt and equity at the corporate level and advise companies on mergers and acquisitions.
Investment banks are usually split into coverage groups (e.g. Energy, Consumer Goods, Real Estate, etc.). In terms of skill set and types of transactions, most of the groups are fairly similar. However, the real estate group is a completely different animal.
The reasoning is, real estate investment companies are completely different from typical companies that make and sell a product. Also, in real estate, mergers and acquisitions are fairly uncommon whereas capital raising (and multiple rounds of it) is extremely common.
Therefore, the knowledge gained, transactions worked on, and modeling skills acquired will be unique compared to your other banking peers which means your exit opportunities will most likely be in the real estate industry.
As a junior employee, your role will be:
Just because you are in more of a corporate finance role does not mean you don’t have to know real estate. You will still be required to know how to model leases and value properties in order to value the company you are working with.
Of all the real estate jobs, REIB will pay you the most money at the junior level but will also require the most amount of hours and is the hardest to get into.
Interview with an Real Estate Investment Banking Analyst
This interview is coming soon!
Analyst (0-3 years)
Associate (3-6 years)
Vice President (6-9)
Managing Director (12+)
Analyst (1st yr): $85k base + 80% bonus
Associate (1st yr): $125k base + 80% bonus
After the junior levels, pay can vary widely. The below are the low end of the compensation range for these groups.
Vice President: $300k+ all in
Director: $400k+ all in
Managing Director: $500k+ all in