Hiring in European real estate debt drops 37% in H1 2019

Turbulence in financial markets, less activity among established players and consolidation of lending teams are factors in the fall, according to Paragon Search Partners.

Hiring levels across Europe’s real estate debt market dropped 37 percent to 53 moves in the first half of 2019, according to a report from recruitment firm Paragon Search Partners.

Contributing factors included turbulence in the broader financial markets, less hiring activity by the market’s most established organisations, and teams consolidating following a bumper year of hiring in 2018, Paragon said in its research.

In line with the broader European real estate debt market, recruitment by debt funds dropped by 48 percent compared with H1 2018, but still accounted for 34 percent of all people moves, making it the most active area of the market in the year to date.

Meanwhile, hiring in debt advisory doubled in the first six months of the year versus H1 2018, largely driven by newly launched or expanded platforms such as Auxilium Real Estate, CRELEND and Rivercrown, Paragon noted.

Senior hiring increased proportionally to 54 percent of all moves recorded in the first six months of 2019. By contrast, junior hiring was down 66 percent year-on-year, accounting for only 17 percent of market moves.

Fewer analysts and associates left the sell side to join debt funds during the first half of the year, while the number of junior debt professionals leaving to join private equity firms dropped by 80 percent year-on-year.