Ask Me Anything - Merchant Banking —&gt; T15 MBA —&gt; REPE
Worked in real asset merchant banking (real estate, renewables &amp; private infra) for a couple years before starting b-school. Primarily working on acquisitions and private credit deals at a large west coast (LA, SF) REPE fund this summer. Fire your questions away
[{"id": "iftuuie", "text": "NGL I\u2019m involved in CRE at a few levels, atm in REPE, and I have no fucking clue what the first two things you listed are. Is that some upper echelon institutional shit?", "replies": [{"id": "ignncl0", "text": "Merchant banking is similar to investment banking, difference being you can invest in client deals. T15 MBA is simply a grouping/ranking of US b-schools", "replies": [], "depth": 2}], "depth": 1}, {"id": "ifu963y", "text": "Is it a Debt or Equity fund?\nHow has your cost of capital changed since Jan 1?", "replies": [], "depth": 1}, {"id": "ifuwe7d", "text": "What asset classes", "replies": [{"id": "ifv1so9", "text": "Primarily healthcare (life sciences, MOBs, seniors), with some SFR/BTR development sprinkled in", "replies": [{"id": "ifv23dj", "text": "Any life sciences stuff in the Bay? Alameda going crazy with life sciences dev right now", "replies": [{"id": "ifvdorw", "text": "Yup but it\u2019s all legacy - we\u2019re on the sidelines atm given how expensive land is. Expecting VC funding for life sciences to slow down too, which is another deterrent", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ifwjtzu", "text": "What\u2019s renewables/private infra merchant banking all about?", "replies": [], "depth": 1}, {"id": "ifww4ne", "text": "Advisory and capital raising/placement at the asset-level. We'd often buy pieces of client deals (e.g. portfolio of windfarms, railways, etc), either in a subordinate debt, or preferred equity position. Personally found both verticals pretty boring, so decided to jump into real estate", "replies": [], "depth": 1}, {"id": "ifxzu59", "text": "1. How do you compare your private credit deals to the deals you did at a bank? Can you share more color there\n   1. I am in debt capital markets brokerage so I want to understand the deals in private credit\n2. Are any of your bridge loans blowing up now that the rate on your perm takeout rate rising\n3. Can you talk about what you got out of your MBA? I've heard 50/50 about MBA's that its either a total bender where you network and party constantly, or that its not that but rather academically enriching. What happened there? \n4. Is your MBA real estate focused like at UCLA/Berkeley Haas? Did you consider getting a MSRE or similar instead of MBA? What was your thinking related to that decision?\n5. BIG: is your B-School in the same market at your buy-side job?\n\nThanks", "replies": [{"id": "ifykct1", "text": "All good questions.\n\n1. Bank deals were a lot more sponsor-driven, and less generally less creative. Typically involved writing cheques for name-brand operators to earn 7-8% on a b-note. The fund I work looks at quality underlying asset and/or operating business first, sponsor second. Idea being, we\u2019d like to get flipped the keys and buy it out for X% of value. Structures include a-b notes, convertible and participating debt. As you likely know, the lower in the stack you go, the more the underwriting becomes like equity.\n\n2. Yes absolutely. We have a borrower that\u2019s about to walk away from 50M+ of equity on a portfolio right now - total nightmare.\n\n3. Still in school, so I\u2019ll stick to present tense. Biggest value-add has been gaining perspective from my classmates. There\u2019s Navy SEALs, professional athletes and people from all over the world in my class. Academics are a complete joke, but we\u2019ve got non-grade disclosure so YMMV.\n\n4. It is. The optionality of the MBA was king for me; I wasn\u2019t sure I wanted to stay in alternatives after banking burn out. Was also fortunate enough to land a sizable fellowship, so it was a no brainer. \n\n5. You\u2019re trying to out me here my guy.. but yes again", "replies": [], "depth": 2}], "depth": 1}]