Project Finance Director - Ask Me Anything

Hi I could talk with you for hours about this space and career paths/options. I currently work in the Power & Renewables space on the IB side and am wondering if you feel like the hours are more reasonable as a Director on the lending/bank side vs the advisory IB side? Still fairly early in my career, (only 2 years), really enjoy the modeling and the work involved in these transactions so I know I want to stay in the general space in some capacity. Thank!  

Yes, hours on lending side are typically much less than on the advisory side. Junior folks on my team typically work 40-60 hours a week and rarely on weekends. Obviously when a deal is closing that can be higher, but that's the exception rather than the rule. My hours are similar, although I do more traveling to see clients and go to conferences.

Hello, thanks for doing this. I am very curious what project finance entails and what comps looks like from your experience from the junior side?

Hi! Spent some time doing project finance and got the sense that doing PF at a bank where we didn't win deals was a little boring. Dotting the i's and crossing the t's instead of getting creative with structuring felt mundane. Also felt frustrating to be constantly competing against other banks and not really develop organic relationships with developers as a result and also made analyzing deals feel very binary. Does any of this change as you get senior, or is the tradeoff here the nice WLB? Thank you!

Appreciate you doing this - I did 3 years in energy IB + a few years in corporate (at a developer now doing PF), but I wish I had something where I work a bit more, with higher comp.

Do you think it’s feasible to lateral in your late 20s to a PF role at a bank? Is it worth doing?

I have the impression that long term you can make more in banking vs corporate. I’d also like to diversify beyond renewables given the current happenings in the US. What would you recommend I do?

Thanks!

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This path is very intriguing to me. I am currently in Valuation at a Big 4 and work primarily in the Power/Utilities/Renewables sectors and work on enterprise/equity valuations for financial reporting/pre-deal/strategic purposes. I get to see a lot of the financing structures of the devleopers projects that I value (I.e., tax equity investors, project-level debt, backleverage, etc) and find it all very interesting. In your opinion, do you think I can leverage my experience with valuing these types of projects/companies and experience in project financial models to pivot into project finance? Have you seen anyone or know anyone with a background in valuation work in this space?

Is lending or advisory work in PF better for juniors as learning? Currently an analyst in a PF and I’ve indicated my preference to only do advisory work (due to my M&A background), wondering if my lack of lending experience will come to bite me in the future.

Incoming Analyst at a top group for P&U coverage. We have a seperate PF/Infra financing team. So more Power and Utilities + other adjacent coverage

Want to make the most of my analyst experience, become a killer modeller etc. but I am not passionate about the space. Any tips on how to make my experience more fruitful?

Can you talk about the differences between bank project finance vs. developer project vs. developer project valuation (general culture, skill set, exit opps)

What is the comp trajectory at director and above compared to say energy or infra coverage 

Do you think it is worth making the jump to an American bank's PF team for comp/trajectory/overall growth? Currently on a PF team for a foreign BS bank and see that there is a large comp discrepancy at assoc+ here, but the lifestyle is good here (50-60 hrs with some higher depending on live deals).  Would expect significantly more hours at the American counterparts due to advisory work 

Thanks for doing this. Curious to hear your thoughts on OBBBA phasing out IRA era PTCs/ITCs and eventual shutdown of transfer markets. I’ve only been in this space for 3 years, but the senior bankers on my team have been through a lot of cycles, and aren’t really worried (and neither am I to be honest- I believe renewables is the future, one way or another). Seems like well capitalized developers/sponsors in the space will win out in the long run (Pine Gate seems to be the first casualty). 

Also,  how was the transition from junior process manager to senior relationship manager? Were these relationships cultivated organically as the people who sat across/with you on deals rose through the ranks in tandem? 

If AI busts will PF be messed up since data centers are a huge part of it?

thanks for doing this!

I’m an engineering student (2nd year) who did some estimating at a large infrastructure general contractor during my freshman summer. What advice would you have for someone like myself with a bit of a non traditional background trying to break in? I’m on two investment clubs, but am still finding my lack of finance experience is an issue. Also finding through networking that a lot of banks aren’t hiring interns for their PF teams. Would love to hear your thoughts. Thanks again!

I had a general question. Should I commit to a non-target or go to cc and shoot for my chances at a target or semi target? I might end up being a junior transfer since that is the requirement for schools like UC Berkeley and UCLA, would that put me at a disadvantage since my time there is so much less compared to other students?

Hey, I have been reading about PF in renewables, do you think demand for PF roles will keep growing or is it already pretty saturated? And how is it different from corporate or investment banking work day to day?

We're as busy as ever. Lots of new infrastructure and energy projects being built.

Thanks so much for doing this. What’s your ranking of advisory and lending PF groups on the street? I imagine the Japanese/Euro banks rank high, but I’m sort of curious where the odd groups that sit in MM public finance offices fall (i.e. Piper and Stifel) as well as groups that touch PF but sit in P&U

How hard is it to move from public finance to project finance? Is this a common move and any recommendations regarding the move?

I've been preparing for broad m&a recruitment but have realized I'm really interested in project finance (also more in line with my experience) - how would you reccomend preparing for Project Finance recruitment/how do interviews differ from general IB?

Thanks for doing this. Wanted to ask if it's common to go into project finance right out of undergrad? Also, which banks have good project finance spaces? And why do you think there's so little information online about project finance? Where can I learn more? Tysm. 

Highly recommend GreenBridge Infrastructure as a seriously good resource for junior talent looking to navigate the landscape, understand core concepts, practice modeling, and even find roles (their job board is well curated). It's pretty common to have a financial modeling test during an interview process so I'd recommend getting a few reps in - it will also help you understand the role, the fundamental concepts, and provide a clear demonstrated interest in the space.

So glad you're doing this. So how can one learn financial modeling for renewable energy projects?

Does it hang?

What is the typical recruiting timeline, and what does the general recruiting process look like? Does it differ from traditional IB, or is it less networking heavy etc? Thanks.

Taking a long shot here that you still are replying to comments here. (Thank you in advance if you do get to this)

I'm really interested in joining a PF/M&A Energy and Infra Advisory kind of team at a bank. I'm currently doing PF and M&A at one of the renewable IPP majors in the US. I work on a very small platform team that focuses on niche small scale Solar and BESS Projects/Opps. The debt and construction financing is really vanilla for our projects and not really a modeling skill and subject matter I'm really developing any expertise in. I am learning a lot about modeling ITC and TE structures but am no where near a true SME. PTC and Wind would also be a struggle for me. 

In your opinion - would my current role still be something a Bank would value or would I need to demonstrate I have a really good understanding of and experience with modeling more complex construction and debt financing structures? My exp before this role is a bit unconventional - mainly on the energy markets/offtake/revenue side and I worked at a large strategy consulting firm covering P&U for 3 yrs.

Thanks for doing this! It’s great to get insight from someone with experience on both the developer and banking side. I’d love to hear what skills or experiences you’d recommend building early for someone aiming for a career in project finance, especially in Power and Renewables.

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Thanks again for doing this — I really appreciate it.

Out of curiosity, what’s your perspective on Zions? While they’re a smaller platform relative to some of the larger banks in the space, they appear to be consistently active across project finance and renewable transactions.

What’s your view on their long-term trajectory and strategic direction in the market?

We see them more as a participant/JLA vs. leading deals, but they will occasionally lead as well. They aren't a major player, but they do have relatively consistent volume.

Hello - Thank you for doing this, on a totally separate note. I am currently debating between joining Evercore's Energy Transition group vs Lazard's Power, Energy and Infrastructure group, both of them in NY. Based on your experience in this space, which one is a better spot from a deal and breadth perspective, if you have an opinion?

What developers have a good reputation in the space?

What are the most common exit opportunities you’ve seen from PF lending and advisory banking roles for professionals who started out of school as Analysts? What are the chances of transitioning into Private Credit, Infrastructure Credit, or Private Equity?

Hey, hopefully you are still answering. By chance, do you know what would be considered competitive compensation out of undergrad for a PF bank? I am looking to break into the industry and was just wondering what it was like compared to some other roles, like infra IB.

Hey, thanks for doing this thread. I'm a current undergrad with an upcoming PF internship at a BB. What do you think is the best path from here to enter the infra space and for potential exits? Would you look at recruiting for P&U IB roles, staying on the PF team and looking to move to an infra PE fund or P&U group after that, or moving to an IPP?

Thank you so much for doing this. I’m very interested in the infrastructure and energy space and have recently started learning more about project finance as well. In the US the infrastructure landscape seems more fragmented in terms of how banks structure their teams, with some firms integrating project finance within infrastructure or energy groups, while others maintain project finance as a separate product team. It’s also interesting that industrials, energy, and infrastructure are often siloed despite meaningful overlap, particularly now with areas like data centers sitting at the intersection of infrastructure, energy, and TMT. I’m still trying to develop a clearer framework for how to think about project finance versus broader infrastructure or energy coverage roles. I would love to hear your perspective on how the day to day work and skill development differ for junior bankers and how someone early in their career might think about choosing between those paths. As someone still relatively new to the space, I’d also love to hear what questions are helpful to ask when trying to understand how teams are structured across different firms.

Separately if you are interested in project finance and both infrastructure advisory how do you think it’s best to study from a modelling perspective?

Apologies for the long question and thank you again for any insights you are willing to share.

Hi thanks for the time and information here.
Any advice for an 2nd year associate in leveraged finance who is very interested in project finance. Understand the financing mechanism which is based entirely of the project and often managed by DSCR depending on the structure (offtake, market, industry, etc).

Thinking more advise around switching into this role. 

Reading up on how project finance works would be a good start. There are lots of materials online or you could buy a book. You could also taking a Project Finance modeling course from Pivotal180 or something similar. 

Beyond that, just keep your eyes open for PF Associate openings at your bank and others. 

Hi, thank you for doing this. I know I’m a bit late to the thread, but I was wondering what are some ways you’ve seen analysts really take initiative or separate themselves from the rest of the pack?

I’m starting a new role in Infrastructure Project Finance would really appreciate any advice you may have.