GS Infrastructure PE Group

Based on the most helpful WSO content, the Infrastructure PE group at Goldman Sachs Asset Management (GSAM) operates differently compared to a traditional GP. Here's a breakdown of key aspects:

1. Structure and Operations:

   • The group is part of GSAM, which means it functions under the broader asset management umbrella rather than as an independent GP.
   • Unlike independent asset managers, banks like Goldman Sachs cannot offer employees a share in GP carry because profits belong to the corporate parent. Instead, they may provide other forms of long-term incentives, such as shares in the bank.

2. Culture:

   • The culture within GSAM is generally considered more structured and corporate compared to independent GPs. This can mean a more formal environment but also access to significant resources and a global platform.
   • Hours in infrastructure PE can vary. While the last few weeks before deal signing or bid submission can be intense, the workload is often more manageable compared to traditional PE roles.

3. Compensation:

   • Compensation is typically aligned with other roles within GSAM, which may not match the carry potential of independent GPs but can still be competitive. Employees might receive equity in the bank as part of their compensation package.

4. Visibility into Promotions:

   • Promotions within GSAM are likely tied to the broader corporate structure, with clear pathways and performance metrics. However, the visibility and speed of promotions might differ from traditional GPs, where smaller teams and flatter structures can sometimes accelerate career progression.

If you're considering this group, weigh the benefits of working within a large, resource-rich organization like Goldman Sachs against the potential limitations in carry and the corporate nature of the role.

Sources: Overview of Infrastructure Private Equity, Overview of Infrastructure Private Equity, Private Funds Group (CS/UBS etc), Official Investment Banking Rankings: Boutique and Bulge Bracket Prestige, Unique LP/GP Setup - Governance Mechanics, Economics, Other Fun Considerations