Advisory Council Meeting Spring 2009 Thomas W. Gilligan Dean - PowerPoint PPT Presentation

Advisory Council Meeting Spring 2009 Thomas W. Gilligan Dean

Student Presentation Real Estate Finance & Investment Center: Winners of the National Real Estate Challenge

Tower Configurations Tower entirely white – standard Orange top w/white shaft – regular S season football victories, except A&M and national championships Darkened tower – somber occasions

Tower Entirely Orange Faculty/student academic achievements Academic team achievements UT‟s birthday – September 15 Commencement S Texas Independence Day – March 2 Texas A&M football victory Big 12 Athletics Championships Student organizations sports club national championships

Orange Tower S National Real Estate Finance Championship November 21, 2008

National Real Estate Challenge  Flagship event for UT‟s Real Estate Finance and Investment Center  Challenge started in 2002, first national real estate business-school competition  Driven by MBAs, supported by our Center Council and Goldman, Sachs  Since copied by both academics and professional organizations  Paired with our Fall Conference for Council Members  Added attraction of Challenge judges, who attend Center Conference the day before the Challenge  Goldman provides case, students present in preliminaries, winner of each “room” advances to finals, awards given, “Real Deal”  Benefits include networking (for students, Council members, and judges) and recruiting (for both sides)

Participants  Schools  12 schools in 2002, up to 20 in 2008  Berkeley, Chicago, Columbia, Cornell, Darden, Duke, Harvard, Kellogg, Michigan, MIT,* NYU, Stanford, McCombs, UCLA, UNC, USC, Vanderbilt,* Wharton, Wisconsin,* Yale*  * = Added this year from waiting list  Previous winners include Berkeley (twice), Wharton (twice), Harvard, Kellogg  UT‟s previous best finish was second (2002 and 2003)  UT team picked by faculty, 2007-2008 team was undefeated  Judges  36 Industry executives from 10 states (as of 2008)

2008 Texas Challenge Team Ryan Childs Scott Humphreys Bryan Kaminski Michael Searls Kevin White

Case Competition Overview Competition Format Typical Case Decisions • • Should a firm move forward with a • Case distributed _certain project at a specific price • Teams analyze case • Appropriate price to pay for an • Case solution submitted _acquisition • Each team presents in first round • Best and highest use for a piece of _judges _land or redevelopment • Teams selected to present in finals • Best financing option • Chosen teams present to entire • Structuring joint ventures and _panel of competition judges _partnerships to be mutually • Winner is Selected _beneficial

Team Resume  1 st Place Competition Finishes  University of North Carolina at Chapel Hill National Development Competition  NAIOP “Texas Shootout” Case Competition  University of Texas at Austin National Real Estate Competition

2008 Texas ChallengeTimeline  Day 1 – Case Material Distributed  In depth analysis of case facts and assigning roles  Day 2 – Model Buildout  Preliminary model build-out and qualitative analysis  Day 3 –– Presentation Materials  Begin creating slide deck and presentation prep  Day 4 –– Finish Presentation and Submit Final Version  Presentation practice and timing  Day 5-8 –– Practice Presenting  Meet during evenings after class to practice presentation  Day 9 –– Case Competition Day  Preliminary Round (5 judges) Final Round (20+judges)  Day 10 –– Recover  Sleep, Eat, Exercise

McCombs Challenge Random Facts  At case submission on Sunday at 5pm we had been awake for 33 straight hours  There were 24 different versions of the project model  The final slide was put into the model at 4:50pm on Sunday (10 minutes before submission)  Fuels Consumed  Accommodations  80 Cans of Diet Coke  1 Rented Conference Room  23 Red Bull Energy Drinks  2 Sleeping Bags  38 Jimmy Johns‟ Sandwiches  1 Tube of Toothpaste  3 Large Bags of Sunflower Seeds  1 Airlines “Eye Mask”

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

McCombs National Challenge

Why Texas? and What is next?  Why did we pick the University of Texas?  Tradition  Fellow Students  Real Estate Program  New Opportunities  What are the team members doing after graduation?  Ryan Childs: Accepted an investment banking position with Bank of America  The rest of the team is still searching for real estate investment positions  Considering starting private equity company that specializes in distressed multi-family projects

Dean‟s Report McCombs Advisory Council Meeting March 6, 2009

Outline of Report  Economic Impact on Students  MBA Career Services  BBA Career Services  Admissions/applications  Response to financial uncertainty  Strategic Plan Update  Capital Campaign Update  Rankings Overview  AT&T Executive Education and Conference Center Update

Economic Impact on McCombs School Dean‟s Forum on the Economy Forum on Student Career Services Stacy Rudnick: Velma Arney: Workshop on Career services “MBA Jobs You‟ve initiatives high- Never Considered” lighted in NY Times article. On-going efforts to communicate clearly and frequently with students regarding changing conditions and opportunities for support.

MBA Full-Time Employment Date Offers Accepts 2009 (March 4) 55% 46% 2008 (March 9) 70% 57%  Full-time employment has remained stalled since early December with virtually no movement  International employment may be impacted by new TARP legislation  Almost no on-campus recruiting at this point due to slashed recruiting budgets. Virtually all recruiting is remote – primarily resume books or job postings only  Peer school range 52%-67% offers, 35%-50% accepts

MBA Internship Employment Date Offers Accepts 2009 (March 4) 37% 23% 2008 (March 9) 50% 32%  Investment Banking for internships was down 40% from last year  We may be looking at a much higher percentage of unpaid internships in this year  On-campus recruiting is down 30%, but increased selectivity makes it worse (fewer students get jobs after 1 st round interviews)  High number of interview cancellations due to hiring freezes, layoffs, reduced needs

MBA Career Services Action plan includes  Career fairs in partnership with other UT colleges  New programs that focus on alternative career areas  Hired career consultants to assist with off-campus job search  Subscriptions to an off-campus job search tool  Invitations to corporate contacts for spring career fair  Recruiter Summit to address needs in down economy – local focus  International Task Force targeting major firms in students‟ home countries

MPA Career Services  Full-time employment  Relatively stable year  May 2009 graduates- 93% have a job offer  May 2008 graduates- 94% have a job offer  Interesting Developments  Over the past year, there has been increased recruiting activity and success by a broader range of public accounting and industry employers.  International student employment in the U.S. has been negatively impacted by the economy, legislation and other factors.

MPA Career Services Action plan includes  Project “Northern Neighbor” - The Canada Initiative  Link incoming students to employers innovatively using new media like LinkedIn.  Productively team with MBA and BBA programs on a variety of joint career events.

BBA Career Services  Full-time employment  Offers are down slightly, but it appears that our BBAs are going to be okay this year  Internship employment  Offers are the same because every student has to have an internship to graduate. Students are accepting unpaid and paid positions.

BBA Career Services  Increase of acceptances due to students accepting first offer and/or not having multiple offer choices  Increase in remote versus on-campus interviews due to employers‟ lack of budget  International employment negatively affected by TARP  Every BBA student must have an internship to graduate – students are accepting positions with non-traditional employers and non-paid internships

John Kidenda, BBA „09  Student from Africa  Intern at Merrill Lynch  Received nothing but praise  Offered a full-time position and kept that position through the merger with Bank of America  Offer rescinded due to TARP

BBA Career Services Action plan includes  New programs created to assist BBA students navigate through the job market  Created opportunities for employers to network and maintain branding with students with Target Your Future  Career fairs in partnership with other UT colleges  Recruiter Summit (jointly with MBA Career Services)  Coordinating student field trips with other colleges on campus to leverage opportunities available to all Longhorns