Career Change from Tax Equity to what?
I work at a large bank in a group primarily focused on Tax Equity and renewable energy financing. The One Big Beautiful Big will result in a phase down of tax credits for renewable energy projects over the next few years.
While it looks like my group still has some runway to complete deals at least for the next 4 years, I want to think about what direction I can take my career in since I don't think Tax Equity will exist as it does now in the 2030s.
I think moving to project finance would be easiest but not what I am most interested in. Maybe infrastructure private equity or another power/utilities group? I already have my MBA if that means anything. Looking for some guidance on what could be next for me, I am in NYC.
Cheers.
Based on the most helpful WSO content, here are some potential career paths you could consider transitioning into from Tax Equity and renewable energy financing:
Infrastructure Private Equity (Infra PE):
Energy/Infrastructure-Focused Investment Banking (IB):
Finance Arms of Active Developers:
Broader Infrastructure Finance:
Sustainability and Energy Transition Funds:
Renewables-Focused Asset Management or YieldCos:
Corporate Strategy or M&A at Power/Utility Companies:
Broader Energy or Infrastructure Consulting:
Given your MBA and NYC location, you’re well-positioned to explore these opportunities. If you’re leaning toward a specific path, networking with professionals in that space and leveraging your existing connections in renewables could help you make a smooth transition.
Sources: Thoughts on Power and Renewables IB, Renewable Energy PE Overview, Renewable Energy PE Overview, Renewable Energy, Private Equity vs Megafund Credit
This was actually very helpful WSO Monkey Bot, thank you.
Energy Infra Transition PE is your best bet. Too risky to be with players like AQN, or any Renewable Energy (RE) player that has heavy exposure to US / Canada (is less diversified) as I'm assuming given the regulatory uncertainty their primary focus would be on asset recycling or arranging financing to do more greenfield projects. Hence less end-to-end M&A exposure. If you love all things energy, I'd recommend going to tier 1 PF player where you would be exposed to multiple subsectors outside of RE. If not Energy, your best bet is to move to RE PE shop and then do an internal switch from RE PE to Generalist PE
A move to ET PE is going to be very hard (not infra). You can also do infra PE but I can't imagine why an infra fund would choose a person with tax equity experience over someone at a developer (who would have much better experience). I did see a few tax equity folks jump over to PE recently though which I found to be suprising. Feel free to DM me if you would like.
Can I PM you also?
Sure
PF/developer would be your best bet. Getting into PE is going to be extremely difficult from a tax equity background (though infra will be easier). I've seen a few folks recently jump from tax equity to PE (both corp and infra) which I found to be suprising tho.
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