Buyside gig offer (part-time)

Got an analyst offer. It’s part-time to start as they are really using this 3-6mo period as a “test” to see whether I’d fit well for a full-time role. Value-fund, ~$5B AUM. Very long-term in nature; investments are 2-5 years. Seems like a very thoughtful group of people. Pay isn’t mind blowing, but ok. All-in-all, seems like a good opportunity, but this is all surface level with a lot of unknowns.

On the flip-side, I’m already working part-time in real estate PE. Pay is essentially nil as it is a start-up operation with the idea of bringing me on FT once we get funded. Nothing set in stone though and it has been somewhat frustrating. I’ve been helping a lot with getting them up-to-speed in the US (they are London-based) and sharing my network, but a lot of that seems to have gone unnoticed. Partially because everyone is busy, but also frankly I suspect some are threatened by my stronger network and knowledge of US commercial real estate. It’s also frustrating to see that they are bringing on a FT associate in the US, but still somehow cannot afford to pay me. Part of that is because I’d be at the VP level, but the other part is that the MD wants someone on “his” team in the main office (we have two offices in separate cities).

Long-term, I think PE is probably better than AM and I have a lot of goodwill (network, knowledge, etc…) built-up in real estate so in some ways it’d be hard to leave now. Still, with no real commitment and some questionable moves by MD of the PE fund, it’s hard to remain motivated and confident there will be something there for me. I of course will use the recent offer as a bargaining chip (not maliciously), but as a wake up call to them.

Not really looking for hard advice here because it’s pretty much impossible to convey all of what’s going on. Just seeing what others may think.

If both are part-time…why couldn’t you do both? New offer sounds better though based off what you’ve provided.

I would recommend the PE option but I’ve learned to always trust my gut with employers. If you are getting a weird feeling then I’d bounce. Sounds like you are too valuable and you shouldn’t allow it to be one sided.

Maybe it has come to that time in the relationship where you need to sit down with the PE guys and tell them how if they like it “they better put a ring on it”, i.e. “pay me, b*tches”. What is your payout going to be anyway, if they manage to “raise capital”? Do you have something in writing or are they just going to keep taking you for a ride?

Not sure if we need to favor the PE job “because it is PE”. There are a lot of pretty crappy PE type of real estate and other firms. Also, if you have a lot of contacts and experience, I’d assume you could eventually find opportunity in the same general industry.

I also agree that you need to like and trust your employer. If you don’t have a liking to your management, it will poison your career experience there.

Compared to this PE stuff, the AM place seems like the “safe option”, assuming you get an offer there. You probably won’t have the same upside though. So, it depends if you need a stable income or if you can tolerate some higher volatility.

AM is the safer bet in my opinion. Getting investor money is always a bit dicey. How did you pull a real estate research job and value fund research job (assuming this is equity)? Rare for anyone to be this flexible. Good for you man.

Yeah, they’re stringing you along. Even if you get the money offer the well is poisoned. And you really shouldn’t be giving anything away for free (at least outlined contractually if it’s future-dated)

For now I think it’s best to do both part time jobs. You might like the AM side more after awhile or find a new and better PE opportunity that can compensate you properly for your network and work.

@Ohai: I’m in a somewhat fortunate position where I have some capital and other sources of income to be strategic, thus can tolerate the higher volatility. Though, it can be quite painful in NYC and I have been doing this for about 6mo now (3mo officially with the PE fund). As such, as you said either they “put a ring on it” or I should be on my way out.

@el_macca: I would love to do both as it would give me incredible options if I could manage it for another 3-6mo. Realistically though, they are both FT positions labeled as PT.

@Infinity: Both are equity. I managed to pull an acquisition role in real estate given my SS background in REITs and I completed a full institutional deal (sold to a PE fund) in senior housing for my family office. I also have been redeploying family capital, which has allowed me to network and learn a whole assortment of different investments across a variety of industries. That’s how I landed the value fund gig.

Ultimate strategic goal is to source and build my own deals, as well as, manage my family’s capital (if we get big enough for me to do that FT).

whats the pay in the buyside gig kid?

Chump change to what you’re making kiddo because let me guess, you pull in $100k a week?

was I asking your fund controlling ass. Now go back to work in your cubicle and tie out the NAV to the footnotes

oy vey

oh lol shots fired from the hips!!! I gave you a compliment kiddo…that you make $100k a week. That is 100,000 a week. Now go relearn your LIFO and FIFO because you failed your level 1 lmao

If both are equity it really gives you free reign to do both at the same time, right? I mean if you hold equity you get more freedom.

It’s a good opportunity but keep in mind Value Funds have underperformed in this market and have seen redemption. How are investment decisions made for the portfolio? What’s the client mix? Long-term in nature sounds like 10+ investment horizon so their client base should fit this investment thesis.

Since this is a part-time gig I would go for it but you are right PE does have a lot of potential since a lot of institutional capital is being deployed in PE. Good luck!

Thanks all. I’ve decided to go with the asset manager since they seem to be making a decent commitment to me.

I spoke with the MD of the PE fund and they agreed to keep me on as a consultant to work on some standalone projects, which do not require day-to-day interaction. Also will continue to make introductions and be apart of some sourcing opportunities and underwriting. Don’t like giving my network and knowledge away for basically free, but it at least builds up my institutional PE experience on the CV. Also should help somewhat longer-term with my family office.

Of course I have to be cognizant of my time and never want to half-ass either one. I’ll give up the PE consultant thing in a second if it’s impacting my work for the AM. That said, this could all work on the basis I highlighted above given the asset manager specifically wants me to focus on real estate related investments and research, thus leveraging the PE fund as a sounding board.

Have a happy 4th all.

Congrats

Congrats.

This guy inspires me! Family office, sick opportunities. Maybe I’ll allow my descendants to be this lucky haha

Family office… You are SET man. Usually people set up a family office if they have at least 150mm in investible assets. Most likely, in the +300 I would have to guess considering the expenses especially if you are in the NYC area. You can do whatever you want. Hook me up too man. I’ll buy a cup of coffee to just talk.

@rawraw & infinity

Thanks guys perspective. Hopefully I’m not coming off the wrong way on this thread as I fully appreciate the fortunate position I’m in. We are but a fraction of the numbers infinity cited so cannot really justify staff at this time, including myself. The goal is to gain experience that might position me to run the FO full-time once we get to sufficient size.