Non Technical "IB" Internship vs Technical RE Internship?

Good evening,


I've secured a paid internship offer at a small LMM Investment Bank, obviously nothing special but still not bad for my position (HS).  The only problem I have with it is that the CEO said there would be very little to no technicals or modelling so it's only really good for the "IB Intern" name on a resume and hopefully the second-hand experience.  At the moment I already have an unpaid internship with a local Realtor, however, they let me participate a lot more and I've been doing basic modeling and other tasks (contacting lenders, due diligence review, etc.) on their recent business acquisitions.  Both are in Westchester.  Which do y'all think would ultimately be more valuable for breaking into real IB in the long term?


Non-Technical "IB" Internship

Pros:

  • Can technically put "IB experience" on resume

  • Hopefully good exposure to the IB work environment and deal process (?)

  • Maybe good networking opps (?)

  • Hopefully a good springboard to more serious IB internships (?)

  • Minimum Wage

Cons:

  • Small LMM, almost unknown

  • Little deal flow, almost no M&A (90% capital raising)

  • Probably can't put deals on my resume anyway

  • Little to no technical experience and modeling (could potentially change with enough lobbying)


Semi-Technical Real Estate Internship

Pros:

  • Much more participation in deals

  • Some technical experience and modeling

  • Can put deals on my resume

Cons:

  • Unpaid

  • Also small and unheard of 

  • Business acquisitions are rare obviously

  • Little to no networking opportunities

 

Based on the most helpful WSO content, here's a detailed analysis to help you decide between the non-technical "IB" internship and the semi-technical Real Estate internship:

Non-Technical "IB" Internship:

Pros: - Resume Value: Listing "IB experience" on your resume can be beneficial, especially if you're aiming to break into more prestigious IB roles in the future. - Exposure to IB Environment: Even if the technical aspects are minimal, being in an IB environment allows you to understand the workflow and deal process, which is valuable. - Potential Networking Opportunities: Being in an IB setting might provide networking opportunities with professionals in the field, which could be crucial for your career advancement. - Springboard Effect: This role could potentially act as a stepping stone to more significant IB internships, especially if you leverage the experience and networking effectively. - Compensation: Receiving a minimum wage is better than an unpaid position, providing some financial benefit.

Cons: - Firm's Reputation and Size: A small, lesser-known LMM might not carry as much weight on your resume as a more recognized firm. - Limited Deal Flow: With little deal flow and almost no M&A activities, the experience might not be as enriching or relevant to traditional IB roles. - Lack of Technical Skills: The absence of substantial technical work like financial modeling could be a significant disadvantage if you seek roles that require these skills.

Semi-Technical Real Estate Internship:

Pros: - Hands-On Experience: Active participation in deals and tasks like basic modeling and due diligence provides practical, technical skills that are highly valued in finance. - Deal Involvement: Being able to list actual deals on your resume can be very appealing to future employers, showcasing your direct involvement and impact. - Skill Development: Gaining technical skills in real estate financial modeling can open doors to specialized areas in finance, not just IB.

Cons: - Unpaid Position: The lack of compensation can be a significant drawback, especially if financial constraints are a concern. - Firm's Visibility: Similar to the IB internship, working for a small and relatively unknown company might not significantly boost your resume's attractiveness. - Infrequent Business Acquisitions: Limited exposure to frequent deals can restrict the learning and experience gained from this internship. - Limited Networking Opportunities: Fewer networking opportunities can hinder your ability to connect with industry professionals and advance your career.

Conclusion: If your ultimate goal is to break into traditional investment banking, the non-technical "IB" internship might provide a better pathway, primarily due to the "IB experience" label and potential networking opportunities. However, if you value technical skills and hands-on experience more highly, and are considering a broader range of finance roles, the semi-technical real estate internship could offer more substantial benefits in terms of skill development and direct deal involvement. Consider your long-term career goals, financial needs, and which skills you wish to develop when making your decision.

Sources: What internship will help set a junior year internship in Real Estate investments/REPE better: Fortune 50 or boutique IB?, NYU Masters Real Estate vs. Non-Ivy MBA, Real Estate Investment Banking

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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