For those who know, how does the process look like for private equity recruiting for energy PE form (Riverstone, EnCap, NGP, etc)? I understand that it’s mix of headhunters and referrals, but is there a specific on cycle process such as the one in New York? when does the process usually kick off?
Also to my limited knowledge of energy PE, it’s more seen as energy VC instead of ‘PE’ since rarely LBOs are ever taken place in the industry. So do the energy PE interviews have a LBO exam or what? what’s the best way to prepare?
thanks!
Hi Drillco77797, yes, I'm a bot, but I'm also good looking. Hopefully, these threads help you:
Hope that helps.
Riverstone - traditionally recruits through a headhunter. They've used CPI in the past. I want to say that they do a mix of traditional on-cycle as well as off-cycle recruiting on a rolling basis. I recall getting an inbound a few months after the first wave of recruiting for a fairly targeted process involving 1 or 2 hires... so I wouldn't necessarily call that on-cycle. Speaking for the bigger MF platforms here, it seems like these off-cycle processes are not uncommon. Unexpected turnover inevitably occurs at those places and the class sizes are generally pretty large. I'm aware of Blackstone (energy partners - used SG Partners... unlike GSO, I know they don't have an office in Houston but figured people would want to know), KKR (real assets - used HSP), Warburg (energy - used HSP) and Apollo (natural resources - used Ratio) doing the same thing.
On a side note, I would bucket First Reserve and ECP (used CPI) similarly to Riverstone per above.
EnCap - mainly recruits through referals/word of mouth (banker relationships, recs from former employees, other "Texas connections" between existing investment professionals and candidates); typically have a structured process but they usually aren't too concerned with matching the same timeline that coincides with the kick-off of NYC on-cycle recruiting. They generally have a good idea of the type of candidate that they want and are comfortable doing things on their own timeline (this will make sense to those who are familiar with their process).
NGP - in some ways, they are similar to EnCap. As far as I'm aware, they do not use a headhunter either. But I'd definitely say that they have seemed more open to moving relatively quickly (weeks to months, not days) after on-cycle recruiting kicks off to fill most of their class. FYI most of their staff is based in Dallas.
Quantum's process timing is similar to NGP, but they do use a headhunter (DSP).
Brainstorming some other Houston Funds (others feel free to chime in on the ones with question marks):
Lime Rock (used DSP) Carnelian (no headhunter) EIG (used HSP) Kayne Anderson (?) Post Oak (?) Denham (?) Stonepeak (?) EIV (?)
Lastly, I just want to be clear, a headhunter is in no ways an absolute gatekeeper to getting into some of the processes listed above. If you can get a good referral or intro, you will likely get a look without necesarrily going through the headhunter. Also, the headhunters I listed were the ones that I heard from while going through recruiting and may have changed.
Good info, appreciate it! What's the best way to prepare for these interviews - is the best route to just prepare with all other "generic" PE guides out there (for modeling, questions, etc.), or are the interviews more bent on oil & gas related topics? Also, is there an advantage in recruiting during your first year as opposed to your second year?
Thanks a ton for the help! This was great.
Seconding the comment above me, what's the best way to prepare for energy private equity? Going through the general guides makes me feel it doesn't prepare me enough.
Do you have any resources as well you could share? Feel free to DM
What's going on at Warburg? Are they still hiring for their energy practice?
Can't imagine they are, don't think they've had an energy exit in recent years.
Makes sense... read the recent articles on them pulling back from the sector but was hoping they would still have a need for portfolio management and execution purposes.
Warburg just announced they're no longer investing in energy...
When I recruited went like this:
Riverstone: CPI Apollo: Ratio TPG: CPI Stonepeak: Bellcast ECP: CPI Blackstone: SG BlackRock: HSP GIP: GoBuyside
Pretty much at the big funds, it follows the same process as New York. Honesty, upstream PE is not looking good right now. If I were you, I'd go for infra funds or try to leave the sector... sorry...
No need to say sorry haha, not your fault.
Yeah upstream sucks, but I was considering maybe energy (renewables, midstream, downstream, etc) would still be a decent opp.
How would you recommend to go through infra recruiting? Are you currently at an energy or infra fund?
Thanks for the help
Perferendis aut harum rerum eos impedit. Reprehenderit qui reiciendis nihil est aut ratione neque. Amet tempora nisi deleniti aliquam. Sit rerum molestias ab explicabo voluptatem non. Saepe alias nisi illum in inventore.
Autem ea nemo aliquam doloribus vero. Sequi architecto officia repudiandae pariatur rerum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...