JPMorgan Tax Equity IB Group
Looking for some thoughts, comments, and opinions on this group. (Based out of Chicago) Is this an attractive group? Good bonuses? Any info is appreciated. Thanks
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Those guys are always looking to lateral - not sure why.
if you want to do energy in Chicago not a bad gig. I think real estate / energy tax equity are separate teams but could be wrong
I am somewhat familiar with that team. Tax equity deals are really complicated and can be really dry. I have never seen offering documents so dry and long in my life. Transaction documents in that space are expert level compared to anything that I've seen in finance. One transaction can take upwards of 9 months to close.
What is tax equity? A bank will structure deals/invest in deals to gain tax benefits for the bank. This could be via investing in renewable space, HUD (housing unity development), oil and gas, etc. The work is focused on the interplay of municipal laws, tax and accounting for a transaction. If tax and accounting work is boring for you, this group will be a nightmare for you. The coolest part of the work is learning about the assets you're financing (helping raise financing for affordable housing projects or wind turbines for example). However, I think that is a small part of the work, probably 10-20%.
It's a very specialized group. The easiest exits would be to a renewable/project finance/or any group that is familiar with the projects you are working on.
There are two teams - one focuses on renewable energy (e.g., wind turbines, solar panels) and another does low-income housing (usually involving a state or local government housing authority). Both of them are doing deals to invest the bank's money into projects that will create tax credits for the bank.
The analyst pay is like any entry-level finance or accounting job (not very high), and the working hours are usually 40 per week. Sometimes there are late nights required due to deadlines, but those are rare.
The energy team is definitely not 40 hours a week. Believe the pay is MO caliber and the turnover is due to a disconnect between hours and pay
JPM and BAML have the best teams on the street. Transaction length could be as long as 4 months
Tax equity is the most boring shit on the planet. Started my career doing some of the first renewable TE deals. Not a bad start to get into clean energy space but GTFO of that niche side of it once you learn the basics
Could I PM you?
Bump
What’s mentioned above covers pretty well.
Group sits in CIB under TOI “Tax Oriented Investments” and you’ve got 2 main sections one renewable energy with the other being affordable housing. Essentially these groups invest in gov subsidized projects to generate tax credits and reduce bank liability to Uncle Sam.
Deals are long and structured very tediously.
From what I’ve heard, the comp is well below street and the hours aren’t great either
I work at a developer who works w that group.
Can anyone explain why these deals are structured so tediously? I used to do banking and some of the deals the bank would underwrite at larger $ amounts would have so many fewer conditions precedents and complicated pieces involved
Granted I was in TMT at the bank but u get the point
Can you give an example of the conditions precedents that you find tedious?
Well some will have 30+ for each of 3 separate funding dates. Tax memos, appraisals, insurance reports, full environmental and permitting reports, full transaction doc legal ones which I get, several real estate items, financial statements, certification status for power generation, interconnection assessment, phase 1 ESA, and am missing quite a few others. I understand the rationale for having these, but do find it interesting that other types of deals seem to have way fewer. Or maybe I just wasn’t as involved in the legal docs on those.
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