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Re finance presv5
 

Re finance presv5

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    Re finance presv5 Re finance presv5 Presentation Transcript

    • Working in Real Estate Finance
    • Introduction
      • Real Estate Finance Industry Overview
      • IB and PE Summer Associate Perspectives
      • Bank of America Case Study
        • Tishman Speyer/Lehman Brothers purchase of Archstone-Smith Trust for $13.5 billion
    • “ Real Estate Finance” Industry Overview
    • Industry Overview Investment Banking
      • Real Estate Investment Banking
        • Lead equity and debt placements
        • Advise on sale of real estate portfolios and assets
        • Provide general advisory services to public & private companies
      • Typical Role of Real Estate Investment Banker
        • Advise on M&A transactions
        • Pitch deals to clients
        • Create offering memorandums
        • Market portfolios to prospective buyers
        • Negotiate transactions
        • Perform due diligence for acquisitions
        • Serve as a liaison between the capital markets team and clients for debt and equity transactions
    • Industry Overview Private Equity Funds
      • Assemble capital from institutional investors, pension funds, and wealthy individuals
      • Structured as limited partnerships (typically)
      • Invest in such things as:
        • Real estate and mortgage instruments
        • Single assets
        • Real estate portfolios
        • Real estate companies
      • Types of real estate private equity funds:
        • The Blackstone Group, Apollo, Fortress
        • Wall Street Merchant Banks: MSREF (Morgan Stanley), Whitehall Funds (Goldman Sachs)
        • Colony Capital, Starwood Capital Group
        • Cherokee Partners, Cypress RE Advisors, Beacon Capital
    • Industry Overview Alternative Careers
      • Pension funds – Advise funds on real estate investment opportunities
      • Corporate Banking – Assist local developers with obtaining capital requirements
      • Capital Markets – Work in an industry-focused product group (high yield, derivatives, CMBS)
    • Day in the Life….. Investment Banking Summer Associate
    • Recruiting Process
      • Recruiting Process
        • Conducted numerous informational interviews
        • Took steps to learn more about real estate
        • Interviewed through the CMC in early January
      • Tips
        • Understand culture of each firm
        • Stay knowledgeable on the industry
        • Interviews - prepare, prepare, prepare
    • Highlights of My Summer
      • ~$3B sell side M&A deal
        • Deal hopefully will be announced soon
      • $3.4B sell side M&A deal
        • Gramercy Capital Corp bought American Financial Realty Trust
      • Presented to CEO/CFO of St. Joe
      • Experienced the market’s meltdown
      • Other miscellaneous deal teams
    • Typical Day
      • Typical Day
        • No day was the same!
        • ~90-100 hours/week
        • Frequent interaction with deal team leader
        • Dinner
        • “ Hurry up…wait”
        • Crackberry
    • Required Skills
      • Skills That I Needed
        • Excel (Training the Street)
        • PowerPoint
        • Organization
        • Communication (verbal & written)
        • Common sense
        • Balanced life
        • Positive attitude!
    • What I Learned
      • Investment Banker = Financial Consultant
        • Must be proficient in finance and accounting
      • Skills I need to continue to develop
        • Becoming more efficient in Excel = more sleep
        • Capital markets and valuation knowledge
        • Real estate industry knowledge
    • Day in the Life….. Private Equity Summer Associate
    • Summer Highlights
      • Analyzing $1 billion-plus deals
      • Visiting properties / travel
      • Meeting management teams
      • Drafting an OM
      • Starting in a hot market & witnessing the debt markets freeze
      • Attending a major private equity conference
      • Learning about the models and investment approach
      • Learning from the other people in the firm
    • Summer Associate Perspective: Working on a Deal Team
      • Identify the target (this happens under different scenarios)
      • Research the target & its industry (high level)
      • Work with an associate in creating the initial model
      • Prepare initial Investment Committee (“IC”) presentation
      • Establish next steps with the target company
      • Work through the data room and perform basic due diligence
      • Additional IC presentation
      • Meet with the management team (travel)
      • Perform extensive due diligence (travel)
      • Additional IC presentation
      • Next steps…
    • Important Skills & Traits
      • Functional
      • Communication skills
      • PowerPoint
      • Excel
      • Financial analysis
      • Strategic analysis
      • Common Sense
      • General
      • Work ethic
      • Positive attitude
      • True interest in subject matter
      • Knowledge of subject matter
      • Ability to network
      • Humility
      • Sense of humor
    • Case Study Tishman Speyer/Lehman Brothers purchase of Archstone-Smith Trust -$13.5 billion-
    • Questions