My internship at Velo was incredibly educational and gave me a great introduction to real estate, credit markets, and private investment in general. Many of my tasks as an intern in the Nordic investment team directly involved Velo’s expansion efforts in the Nordics, which was an exciting experience. One of the most rewarding aspects was the opportunity to witness firsthand how strategic decisions are made in a growing company.

I thoroughly enjoyed working with Velo’s tight-knit investment team, where the atmosphere was welcoming and easy-going from day one. The team’s diverse backgrounds enriched my learning experience, as I could gain insights from professionals with varied expertise and perspectives. I can wholeheartedly recommend that anyone interested apply for an internship.

Key responsibilities and experiences during the internship

My primary responsibility as an Investment Intern was assisting the team in the process of analyzing inbound credit investment opportunities. The first analysis usually involves assessing materials such as financing requests and investment memorandums to form a qualitative understanding of the proposed investment structure and underlying asset. Then, the credit investment and underlying assets’ cash flows are modelled over the proposed term of the investment. If the opportunity is pursued further, we take a closer look at e.g., the asset’s location, compare its economics with similar properties in the area, and calculate sensitivities to downside scenarios. The credit investment proposal is then structured based on our analyses and presented to a broader team at various stages of the analysis, culminating in an Investment Committee meeting, where a final decision is made. I participated in all of the stages above during my tenure at Velo, with the opportunity to present early-stage findings being a clear highlight of my internship.

During my internship, the group was also in the process of fundraising for two new credit mandates, which allowed me to assist the Investor Relations team in preparing research and sales material for investor meetings. Examples of assignments included estimating the size of our addressable markets and gathering data on investors’ appetite toward sustainability.

Since Velo was at a relatively early stage of its development, I had the opportunity to advance several internal development projects as well. One major project involved the reconstruction of an outdated central fund management workbook used regularly by most Velo functions.

How does working at Velo compare to working at Nrep?

The underwriting process is broadly similar at Velo compared to Nrep, which means that the assignments given to an intern are also much alike. The main difference is the Velo funds’ position as a Nordic credit investor rather than an equity investor. Because of this distinction, we focus our analysis much more on assessing downside risk, as credit investments provide a fixed, contractually-secured expected return compared to equity’s unlimited upside potential. This means that we must carefully analyze sensitivities in the assets’ and borrowers’ financial position and be comfortable with risks related to the equity sponsor(s) and other relevant stakeholders, e.g. developers, as well.

My internship at Velo was also a distinctly international experience – it was not uncommon for me to work with people based in Sweden, Germany, or the UK during any given week. Despite working with different types of tasks, Velo and Nrep are closely connected both professionally and socially, collaborating in producing quarterly macroeconomic reports, for example, and participating in office-wide events, such as ice bathing and after-works at the office and a three-day Urban Partners Group-wide summit in southern Sweden.

From project development to real estate finance

I started my career as a project management consultant representing residential and commercial developers in Stockholm. With a Civil Engineering degree from Chalmers University of Technology, the role was a natural fit. A position in finance was never anything I considered due to the nature of my studies. Over time, I transitioned towards conducting TEDDs (technical and environmental due diligence) for both corporate M&As and pure real estate transactions, eventually becoming an assignment manager for those types of projects.

Working in a transaction focused environment opened a new world to me, and my interest in investments grew. The blend of interpersonal skills, unambiguous calculations, and the thrill of closing deals all factored in. I decided to move on, working purely with transactions as an advisor on both the sell-side and buy-side. This was immensely educational, but the urge for more complex financial analysis persisted. Not to mention that the years spent crunching calculus, structural design, and mathematical statistics at university have all shaped me into a numbers person. Naturally, when an opportunity to join Velo Capital arose, I didn’t hesitate.

Velo Capital - Financing the Green Transition

Today, I am a part of the Nordic investment team at Velo Capital. My day-to-day work mainly consists of underwriting and reviewing the deal opportunities we encounter. This includes, but is not limited to, cashflow modeling, market analysis, and business plan evaluations.

Velo Capital is Urban Partners’ credit strategy focused on financing the green transition. We advise funds that provide tailored financing solutions to the best-in-class borrowers and projects. This includes mezzanine and whole loans for standing and transitional assets, as well as ground-up developments across a range of real estate segments in Germany, Sweden, Denmark, and Finland.

We are a tight-knit team with various backgrounds that complement each other well. In practice, this means I could be educating my fellow colleagues on construction contractual law, the Swedish residential rent setting system, or the norms for load-bearing capacity of the floor in logistics assets. On the flip side, it could be my colleagues teaching me about CRREM analysis (Carbon Risk Real Estate Monitor, a sort of sustainability measurement tool), structuring of various security packages in legal documentation, or the best Bloomberg shortcuts.

True success is born from the collective strength of a multidisciplinary team

Working at a real estate private credit platform with a strong sustainability sentiment, there are several perspectives that bring added value to the team and thus also the funds. The most obvious being an understanding of the financial product, but also the underlying asset. That means we need to understand items such as the supply/demand dynamics for the property's usage and location, credibility of the business plan, potential exit strategies, and does the asset meet our sustainability demands.

At Velo Capital and Urban Partners, we understand that true success is born from the collective strength of our multidisciplinary team. By harnessing a wealth of knowledge in finance, real estate, engineering and sustainability, we create a collaborative environment that enables us to analyze opportunities comprehensively. We make sure to leverage our in-house knowledge, making the sum larger than our individual values.

If the value we place on continuous learning and multidisciplinary skills resonates with you, I encourage you to explore the available job opportunities and consider joining Urban Partners.