Any chance at Infrastructure Private Equity? How to maximize chances?

To maximize your chances at Infrastructure Private Equity (Infra PE) from a DCM role at a BB, here’s what you need to know and consider:

1. DCM to Infra PE: Is it Possible?

• While DCM roles at BBs can place into private credit (e.g., MF ABF like BX, Apollo, KKR), transitioning directly into Infra PE is less common. This is because DCM typically doesn’t provide the operational modeling and in-depth business understanding that Infra PE firms value.
• However, Infra PE does have some overlap with private credit, especially in asset-backed financing. Your experience in DCM could be spun as relevant if you focus on deals involving infrastructure-related assets or sectors.

2. How to Maximize Your Chances:

• Develop Tangible Skills: Infra PE requires strong modeling skills, particularly for operational and cash flow models. If your current role doesn’t provide this, consider taking on side projects or external courses to build these skills.
• Network Strategically: Leverage your BB network to connect with professionals in Infra PE. Focus on firms that value asset-backed financing experience, as this could be your unique angle.
• Target Relevant Deals: Within your DCM role, try to work on deals related to infrastructure, energy, or other tangible asset-backed sectors. This will help you build a narrative for your transition.
• Consider an MBA: An MBA can act as a reset button, allowing you to pivot into Infra PE. Look for programs with strong PE/Infra PE recruiting pipelines and consider participating in buyside-focused labs or internships during your MBA.

3. Should You Lateral to M&A/Coverage?

• Pros: M&A or coverage roles provide the modeling and deal experience that Infra PE firms highly value. If you can lateral to a group with strong infrastructure or energy coverage, this could significantly boost your chances.
• Cons: Lateral moves can be challenging and time-consuming. If you’re already in a strong DCM group with good placement into private credit, it might be more efficient to focus on transitioning directly to private credit and then pivoting to Infra PE later.

4. Alternative Pathways:

• Private Credit to Infra PE: If you land a role in private credit at a megafund, you could position yourself for a move to Infra PE later. Highlight your experience with asset-backed deals and your understanding of infrastructure-related sectors.
• Internal Transfers: Some BBs have internal mobility programs. Explore opportunities to move into an infrastructure-focused team within your bank, such as project finance or infrastructure advisory.

5. Key Considerations:

• Realistic Expectations: While transitioning to Infra PE is possible, it’s not the most straightforward path from DCM. Be prepared for a longer journey, potentially involving multiple steps (e.g., DCM → Private Credit → Infra PE).
• Long-Term Goals: If Infra PE is your ultimate goal, every move you make should align with building the skills and experience that Infra PE firms value.

In summary, while the path from DCM to Infra PE is not the most direct, it’s achievable with strategic planning, skill-building, and networking. If you’re open to an MBA or a lateral move, these could further enhance your chances.

Sources: Going from IB to ECM or DCM? Anyone made this move?, Moving from Asset Management into IB / PE, Q&A - Infrastructure PE & IBD, Ask me anything - Non Traditional Background to MM PE to H/S/W, Q&A: VP in Private Equity (Growth Equity + LBO)...Post-MBA...Formerly IB Analyst