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Real estate division

So I saw on a thread about real estate in banks. Can't seem to find much on google but what's the difference between the real estate division and the m&a division in terms what kind of work they do and salary?

Reply 1

gr8wizard10

product vs industry coverage group is what i think you're alluding to.

within m&a there are groups which cover different things.. coverage groups split into regions and sectors.

a coverage group (such as an industry coverage group: TMT, Industrials, Consumer goods etc..) they have insight into industry specifics and mainly are responsible for pitching and focusing on the assumptions behind model calculations etc.. and you have product groups which focus on the raw modelling, deal process and execuction of the deal. ofc there's a lot of overlap between the division but generally that's the format it holds.

here's a good read which discusses it a bit more:
http://www.mergersandinquisitions.com/industry-groups-vs-product-groups/

Reply 2

tazza ma razza

Original post by Tempzz

I was in a similar position to you literally 2 - 3 days ago after i noticed morgan stanley offer real estate as part of their spring week and was like hmmmmmm

http://www.mergersandinquisitions.com/real-estate-investment-banking/

http://www.goldmansachs.com/what-we-do/investment-banking/industry-sectors/real-estate.html

As for salary, I have no clue though I would think it would be similar to that of most IBD groups within banks as it is literally the same service/work but with a different product. Not 100% sure though so i reckon a look at glassdoor for more salary information wouldn't go amiss

"courvoisier I'm bottlin' Man... courvoisier " lol don't suppose you're a fan of Tempa T by any chance?

Spoiler

(edited 7 years ago)

Reply 3

username738914

Normally I'd just say google it, but I'll help:

The investment banking division - IBD (as gr8wis said) is split into coverage teams and product teams. M&A is a product team usually working across industries on the execution bit of an M&A deal. A coverage team could either cover a) an industry (Real Estate TMT, Industrials, Power, Energy, FIG etc) or b) a country/region (Benelux, UK, France etc).

Industry/regional teams cover across various transactions, it could be M&A, or equity financing or debt financing etc. So a real estate team would be covering real estate deals across various transactions liaising with product teams like M&A, LevFin, ECM, DCM etc.

Pay is the same across IBD (might be slightly less in ECM/DCM teams) for the most part, with variations in how much each team does in a year, how the division does and how the bank does overall.

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Reply 4

Tempzz

Original post by tazza ma razza

Spoiler

Mate who isn't a Tempa T fan? 😂

Reply 5

Tempzz

Original post by Princepieman

Just read that article from gr8wizard and damn this is really interesting! I'm leaning towards real estate (I love Manny Khoshbin, don't judge me) but curious towards the exit opps. For M&A best case would be of course PE and I'm aware that there are Real Estate PE firms/REITs, are the level of competitiveness towards breaking in the same or is one harder than the other and do REITs utilise the carries interest method of compensating employees?

Reply 6

username738914

Original post by Tempzz

Finance is competitive no matter which area of it you look at, I don't think competition should be a worry for you if you're looking into this area.

Yes as you said, RE PE/REIT/Development firms. But you can move into standard PE (or even HF) firms from an RE coverage group, you aren't necessarily pigeonholed.

Not sure on the comp structure for REITs, though from what I've read they don't do the standard 2/20 structure - seems like more of a typical corporation environment where you amass shares the further up the food chain you go.

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