Exit from Natural Resources/Energy to Generalist PE
I recently received an offer to join GS/MS/JPM in their Natural Resources/Energy group, and I'm a bit concerned about how the sector might affect my exit options. While I find the sector fascinating from a banking standpoint, my long-term goal is to transition into a generalist PE role (non-infra).
I haven't found many exits from this group to generalist PE firms on LinkedIn. How much do generalist PE firms care about your industry coverage background?
Based on the most helpful WSO content, here are some insights regarding transitioning from a Natural Resources/Energy group to a generalist PE role:
Sector Pigeonholing:
Industry Coverage vs. Generalist Roles:
Transferable Skills:
Strategic Positioning:
Recruitment Timing:
Industry Trends:
In summary, while there may be a bias towards candidates with broader industry exposure, the skills and experience gained in the Natural Resources/Energy sector can still be valuable and transferable. Strategic positioning and timing your recruitment can also help in making a successful transition to a generalist PE role.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/breaking-into-private-equity-from-banking?customgpt=1, Best Industry's to Cover, https://www.wallstreetoasis.com/forum/private-equity/choosing-pe-jobs-how-important-is-industry-focus-vs-firm-reputation?customgpt=1, Picking the Right Group, Q&A: Former Strategy& associate
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Anyone?
I’ve seen a couple people on LinkedIn go from GS Nat Res to tech MF. Idk about generalist tho
Is the offer in NYC or Houston? If NYC that will make it easier to recruit for generalist roles. If Houston a bit harder as you will be removed from the cities where most of the generalist recruiting happens.
I made the switch from energy investment banking as an analyst to a generalist middle market firm where one of the sectors they covered was oilfield services, which is more industrial like than traditional exploration and production. GS/MS/JPM are strong brand names, and as long as you get exposure to the more industrial like subsectors within energy you should be okay to recruit for PE, especially if you can practice building traditional 3 statement LBO models.
Thanks!
What do you think about moving into this space from a MO Desk that deals with Physical Commods?
I would look at exits from your group specifically. The fact that you can't find any is likely the answer.
Generally, Houston IB -> non-energy/infra PE in NY is a rarity. There's a reason you see between a half dozen/a dozen people from every Houston analyst class bolt to NY within the first year... their recruiting options for non-energy/infra + non-TX roles are slim in Houston.
Generalist PE shouldn't care much about industry background, but for whatever reason Houston/O&G coverage is always an uphill battle. You will be "the energy guy/gal" in every process. If you are going into this knowing you don't want to be in O&G, I would keep looking outside of Houston even if you take a slight downgrade in bank name (note, if you go to a TX school you're going to have to network your butt off to get to NY IB, Houston is the default for those schools)
I did O&G banking in houston and now infra PE in nyc. I tried to switch to generalist and just didn’t really get many interviews, but ended up in infra. I think the switch is kinda tough / impossible at the MF level, but ask yourself why you really wanna do generalist PE. for me is was for the wrong reasons, just seemed sexier etc. but infra turned out to be better in a lot of ways bc the sector has experienced a lot of growth and so you have a better chance of getting promoted to VP. Also alongside that growth there’s been a broadening of the mandate to the point that the work seems not much different.. think cold storage, environmental services, waste management, utility services, logistics, etc. these are kinda just industrial businesses that we call infrastructure because they’re non-cyclical and have IG customers. due diligence, modeling, etc is kinda the same
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