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Within commercial real estate, MBAs tend to be interested in firms that focus on funding
commercial real estate. These firms include real estate investment trusts (REITs), mezzanine funds
(combinations of private equity and fixed income), and private equity. These firms work with
commercial real estate companies that are focused on developing new properties.
It is very difficult for MBAs without prior experience in real estate to enter the real estate industry,
as competition is tough. Students should focus on networking—developing existing or new
relationships with faculty, alumni, and other students who have experience in the industry—as well as
on their curricular and extracurricular activities. Obtaining an internship in the real estate industry
tends to help in the process. As is the case with the other financial services segments mentioned
earlier, it is very important for MBAs to have strong quantitative and valuation abilities as well as
extremely strong interpersonal skills in this space.
The MBA Jungle Web site is a great additional resource for the real estate industry, providing
information on salary ranges, job descriptions, and career paths. 7
Venture Capital
The National Venture Capital Association states that venture capital (VC) firms are “private
partnerships or closely held corporations funded by private and public pension funds, endowment
funds, corporations, wealthy individuals, foreign investors, and the venture capitalists themselves.” 8
Venture capital firms invest in companies with the goal of buying an equity interest in the company
or the assets of the company. Usually, they hope to then sell their stake in the company or the assets of
the company for a higher price than they paid—in other words, to achieve a positive return on
investment (ROI). To achieve this, VCs spend a great deal of time analyzing the strengths and
weaknesses of companies to determine which potential investments would create the largest ROI.
Venture capital is about building the firm and then executing an exit strategy resulting in the highest
ROI.
As is the case in the real estate industry, it is difficult for MBA graduates with no prior experience
to immediately enter the venture capital industry. MBAs should focus on the following: building skills
in financial analysis and valuation, obtaining experience in banking and financial services, and
networking. MBAs should use the extensive network of their educational institution to help them
make contacts in the industry. The network includes, but is not limited to: alumni, faculty, career
center experts, fellow students, club members (in the VC or entrepreneurship club, for example) and
personal networks. It is unlikely that VC firms will participate in on-campus recruiting or even that a
resume and cover letter will be enough to get the interview. Networking is the key in VC.
For additional information on the venture capital industry, both MBA Jungle 9 and the Vault Career
Guide to Venture Capital 10 are helpful resources.