FDD at big four or infrastructure advisory at a big four

When comparing FDD (Financial Due Diligence) and Infrastructure Advisory at Big 4 firms, the better choice depends on your long-term career goals, particularly if you're aiming to transition into infrastructure coverage, private equity (PE), or principal investing (PC). Here's a breakdown based on the most helpful WSO content:

FDD at Big 4

• Nature of Work: FDD focuses on analyzing financials of target companies during M&A transactions. Key areas include Quality of Earnings, Net Debt, and Net Working Capital. It provides a strong foundation in financial analysis and transaction-related skills.
• Relevance to PE/PC: FDD is highly relevant for PE, as it equips you with the ability to assess deal risks and value drivers. However, it may not directly expose you to infrastructure-specific deals unless you're in a team that specializes in that sector.
• Future Prospects: FDD can be a stepping stone to broader transaction advisory roles or even PE, but it may require additional effort to pivot into infrastructure-focused roles unless you actively seek exposure to such projects.

Infrastructure Advisory at Big 4

• Nature of Work: Infrastructure Advisory involves advising on Public-Private Partnerships (P3s), project finance, and infrastructure M&A. It often includes financial modeling, value-for-money analysis, and structuring deals for large-scale infrastructure projects.
• Relevance to PE/PC: This role is more directly aligned with infrastructure coverage and PE/PC in the infrastructure space. You'll gain sector-specific expertise and experience with large, complex deals, which are highly valued in infrastructure-focused funds.
• Future Prospects: Infrastructure Advisory provides a clearer path to infrastructure PE/PC or coverage roles, as you'll develop specialized knowledge and relationships in the sector.

Key Considerations

1. Sector Focus: If your goal is to work in infrastructure coverage or PE/PC, Infrastructure Advisory is the more direct route. It aligns with your target sector and builds relevant expertise.
2. Skillset: FDD offers broader financial due diligence skills applicable across industries, which can be valuable if you want to keep your options open beyond infrastructure.
3. Networking and Exposure: Infrastructure Advisory may provide better networking opportunities with key players in the infrastructure space, including funds and developers.

Recommendation

If your primary goal is to transition into infrastructure coverage, PE, or PC, Infrastructure Advisory is the better choice. It offers sector-specific experience and a more direct pathway to your target roles. However, if you value broader financial skills and want to keep your options open, FDD could still be a strong starting point.

Sources: Q&A - Infrastructure PE & IBD, LevFin to Infrastructure: The Need to Build, FDD / TAS Interview and Case Study Mini Guide, Q&A - Infrastructure PE & IBD, FDD / TAS Interview and Case Study Mini Guide