Corp Dev (M&A) vs. Project Finance for Infra PE exit?

Based on the most helpful WSO content, here are the key points to consider when evaluating Corp Dev (M&A) at a large renewables infra developer versus Project Finance at a bank for a future transition into infrastructure private equity (Infra PE):

Corp Dev (M&A) at a Large Renewables Infra Developer:

• Skill Set: In Corp Dev, you will gain experience in evaluating potential acquisitions, building proforma merger models, conducting due diligence, managing data rooms, and drafting sections of legal agreements. This experience is highly relevant to Infra PE, where similar skills are required.
• Deal Experience: Working on acquisitions and investments in the renewables sector can provide you with a niche expertise that could be attractive to Infra PE firms focused on renewable energy projects.
• Networking: Corp Dev roles often involve frequent communication with banks, PE shops, hedge funds, and institutional investors, which can be leveraged for future opportunities in Infra PE.
• Strategic Insight: You will gain a deep understanding of the strategic goals and operational aspects of the renewable energy sector, which is valuable for Infra PE firms looking to invest in this area.

Project Finance at a Bank:

• Skill Set: Project Finance involves structuring and arranging financing for large infrastructure projects, which is directly relevant to Infra PE. You will develop expertise in financial modeling, risk assessment, and capital structuring.
• Deal Exposure: You will work on a variety of infrastructure projects, gaining exposure to different asset classes such as gas pipelines, water processing plants, and power plants. This broad experience can be beneficial for Infra PE.
• Consultant-Like Role: Project Finance roles can be more consultant-like, involving advisory work and collaboration with various stakeholders, which can be a good fit for the advisory nature of Infra PE.
• Capital Structure Knowledge: Understanding the capital structure and financing mechanisms of infrastructure projects is crucial for Infra PE, and Project Finance provides this expertise.

Conclusion:

Both options have their merits, but the best choice depends on your career goals and interests: - Corp Dev (M&A): If you are interested in gaining strategic and operational insights into the renewables sector and building a strong network within the industry, this path could be more suitable. - Project Finance: If you prefer a role that provides a broad exposure to different types of infrastructure projects and a deep understanding of financing mechanisms, Project Finance might be the better option.

Ultimately, both paths can position you well for a transition into Infra PE, but your personal interests and career aspirations should guide your decision.

Sources: CorpDev -> MM PE?, CorpDev to PE prospects - creating a long-term map / success stories, Corporate Strategy vs Corporate Development, Private Equity vs Venture Capital - Differences and Similarities, Q&A - Infrastructure PE & IBD