Comparing FP&A Roles: Commercial Bank vs. REPE
I currently have 1.5 years of experience in FP&A at a local U.S. branch of an international bank. Alongside the standard FP&A duties, I’ve taken on responsibilities related to liquidity and interest rate risk monitoring and management.
I’ve recently been presented with an opportunity to join a $30B AUM Real Estate Private Equity (REPE) firm in a similar FP&A role. The pay is 20% higher, though I understand the work-life balance won’t be as favorable as my current position. However, that’s not my main concern right now.
I’m contemplating whether this is a wise move. Some colleagues have advised me to wait for a position at a larger U.S. bank to focus on liquidity or interest rate risk. However, I’m intrigued by the potential for learning at the REPE firm. Being part of a smaller organization could offer more exposure and possibly pave the way to a role in asset management, which sounds appealing.
I would appreciate any insights or advice on this decision! Thank you!
One response
It sounds like you’re at an exciting crossroads in your career, and it’s great that you’re considering your options carefully. Here are a few points to think about as you weigh the potential move to the REPE FP&A role:
Learning Opportunities: As you mentioned, working at a smaller REPE firm could provide broader exposure to various functions and responsibilities. If the firm allows you to be involved in more strategic decision-making and investment analysis, this could greatly enhance your skill set and make you a more well-rounded finance professional.
Industry Transition: Moving from a bank to a REPE environment often involves a shift in the type of work you do and who you work with. Real estate private equity could provide valuable insights into asset management, capital raising, and investment strategies, which could be very beneficial if you eventually want to pivot to asset management.
Compensation: The 20% salary increase is certainly a significant factor. Consider how this increase aligns with your financial goals and whether it offsets the potential decrease in work-life balance.
Long-Term Goals: Think about where you see yourself in the next few years. If your ultimate goal is to move into asset management or a specific area of finance, the REPE experience might set you up better than staying in a traditional banking environment.
Network and Reputation: Consider the reputation of the REPE firm and the network you will build there. A strong network in the real estate finance space can be invaluable, especially if you are looking to transition into asset management later on.
Future Opportunities: While some suggest waiting for a bigger bank, don’t underestimate the value of gaining unique experiences in a specialized field like REPE. The skills and knowledge you gain there could make you a more appealing candidate for future roles, whether in large banks or asset management firms.
Ultimately, it comes down to your priorities and career aspirations. If you’re excited about the potential exposure and opportunity to learn in this new role, it might be worth pursuing. Good luck, and whichever path you choose, it sounds like you’re set for a promising career ahead!