At BX/KKR there are separate funds called infrastructure and then energy (example: BX energy partners and BX infrastructure). I understand that infrastructure encompasses energy, but what exactly is the difference between the businesses that these 2 funds (energy and infra) invest in? Thanks.
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BX Energy only does clean tech / sustainability-related investments, including first derivate stuff (e.g. renewable services).
BX Infra does everything else, including midstream.
So infra opportunity set is larger/more attractive? Which would you say is more interesting?
Trying to think from a recruiting standpoint; which would you take out of undergrad? Goal is to either stay in PE or exit to HF (does that make a difference?).
Depends. BX is the exit so go for what you find more interesting. Like the poster below said, BIP targets ~10% IRR vs 20%+ for BEP. I'm too junior to know how that translates into carry but BIP AUM per IP is nuts.
I think as an industry infrastructure is a much more attractive place to be over the next 5-10 years than energy, even renewables-focused like BEP. Very crowded space. BIP you get to touch digital, legacy energy, renewables, transportation, utilities.
Blackstone energy has a shit ton of shale investments,
Blackstone infra invested in the largest private renewable developer on the planet (Invenergy). sure you don’t have this backwards?
Yes, BX Energy is not making new O&G investments and is actively divesting any legacy assets. They sold Cheniere to BIP because LPs don't want the O&G exposure anymore.
Infra targets much lower returns (low teens) vs. mid-20s+ for the energy PE funds.
Curious — at MF level, what are your thoughts on a career on infra side vs vanilla PE? Trying to decide between infra and industrials (and I guess energy, but fear is that it’s kind of a small opp set). Thanks.
IMO BIP is a far better and more diversified opportunity than BEP, in terms of culture, learning experience / deal exposure, and career potential.
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