How can I get from Oil & Gas PE to...Tech PE/VC?

Main question: How can I do this?

So, I made it to PE...but I want to be in tech, not oil and gas.

When I was recruiting out of oil and gas IB, I was pretty much pigeonholed into energy as my only option, so logically I pursued what was the best way to get into PE. I've been an associate for a year now at an oil and gas PE shop. It's been a good experience, but I've always wanted to do tech. Tech VC or PE is the ultimate goal, but I might have to do something in the interim to get there (banking or startup role...).

Has anyone made the transition out of oil and gas into tech?

I think I have the following options:

(1) Recruit for tech PE.
(2) Network my ass off to get into tech VC.
(3) Recruit for tech IB (not sure I want to go back to banking...)
(4) Recruit for a startup operations role – what type of role does my experience even qualify me for? Sales? BusDev? CorpDev? Finance? Product management? I've got an engineering degree...so that might help, but it's honestly been years since I've coded anything not in VBA...

Any advice is seriously helpful. Feel free to PM as well. Thanks!

 

sounds like a really difficult thing to pull unless you have serious connections... realistically everyone will see you as an industry expert now and this is where your strengths lie

maybe try to marry the 2 by becoming an expert on things like systems/equipments servicing the O&G sector and eventually emphasize on the tech aspect

make sure you don't also pursue something who will not make a bit of a difference. Commodities have been hammered, and tech on the other hand is completely hyped up and at all time high... you may be better off taking a contrarian view and sticking to your field in the medium/long run

 

hklevfinbanker:

Thanks!

So, it's a reasonable point that staying in O&G makes sense right now...the strips are in contango (even if shallow), and deal activity is on the rise after coming to a near-standstill in the last year. Valuations in key plays (e.g., the Delaware & Midland Basins in the Permian and the SCOOP/STACK plays in Oklahoma) are on the up-and-up as well. So, not a bad place to be if you're one for the rising-tide argument...

On the other hand, while I think tech might be in a valuation bubble right now, "tech" as an industry will really be the underlying platform for all (or at least most) industries going forward (bio-tech, consumer tech, AI [in cars like Teslas, as one example], space, etc.)...so the opportunity set seems infinite. By contrast, there are only so many barrels of oil we can ever produce period, even as we find more ways to increase recoverability rates...fossil fuels will last a LONG time, but they are a finite resource; not only that, but frankly O&G will fade into the past at some point. Probably not in our lifetime, but it's not exactly like we're funding the future here (except how to power it). I don't believe we'll ever run out of oil and gas, but governments may end up regulating it out of the markets in the (probably distant) future, or some cleaner and more efficient energy source will be discovered. I think either of those are distinct possibilities.

masters:

Thanks!

On the link between O&G PE and tech VC...I can think of 2: (1) fracking is a disruptive technology, regardless of whether you agree with it on a moral basis or not; and (2) PE strategy for in upstream and midstream O&G at a number of firms is essentially VC with larger check sizes because you're generally funding a team who has no assets but a strategy and maybe a track record of success...but those reasons won't get me in any doors I don't think...

I'm trying to "advise" a few startups during my (limited) free time. Anyone have success with that approach?

 

I would potentially look at startups or "tech companies" that deal with energy (more likely than not Solar) or some sort of corp dev role at a Tesla, SolarCity, or FirstSolar. Your knowledge could be very helpful from a standpoint of knowing the competition extremely well and positioning the company to take market share from the player sin the Oil and Gas industry.

"Even if you're on the right track, you'll get run over if you just sit there" - Will Rogers
 
Best Response

Some of the comments here are pointing you in the wrong direction.

You need to go straight for the brand-name VC funds that invest in energy.

Kleiner has been one of the biggest names in cleantech, though they took it right on the chin in the early aughts. VantagePoint is probably the best around. Valor is newer but has arguably the best dollar-for-dollar portfolio in energy startups: SpaceX, Tesla, SolarCity, Renovate America ... Antonio is remarkably sharp and competent, and Elon obviously loves him.

US Renewables Group was big in cleantech, but I haven't heard anything about them in probably half a decade. Riverstone has a hybrid legacy energy and cleantech focus, so you'd probably have an easy conversation with them (and your network at this point probably helps you get in front of them easily).

Your salability is the operational expertise and industry insight (on legacy business models, dying giants [dinosaurs], and the regulatory landscape) you bring after two years in energy advisory and one in energy investing.

To sell this well, you need to be able to pair that with deep knowledge and an interesting perspective on the future of energy. This will likely be renewables/cleantech, hardware, or as someone else mentioned, services.

You probably need 3-6 months to get a real handle on this during your hours out of the office. Really dig in to get some subject mastery before reaching out to get in front of people.

This is only as hard of a leap as you think. If you believe it's a real stretch, so will anyone across the table from you. If you truly understand this is only a slight move toward a seat more accurately focusing on your passion, your belief, confidence, preparation, knowledge, and passion will shine through. Someone will want to pick you up.

Good luck, brother.

I am permanently behind on PMs, it's not personal.
 

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