Infra PE Exits?
Hey guys, given the resurgent popularity of the infrastructure private equity asset class here, I've seen numerous threads on breaking into the space from various backgrounds (infra / energy IB, project finance, developers), but haven't seen much discussion around exits from the space at the associate level and above, at different fund sizes. I would imagine these exits could be quite different from the traditional MBA / Corporate Development / down-size fund path coming out of more generalist funds, and am curious what exits from the infrastructure side typically look like. Are infra PE associates pigeonholed in the sector? I appreciate any insight here!
Anecdotally, have seen moves to generalist PE (generally MM/UMM, MF), Power & Utilities focused MM HF pods, other energy focused HF, Corp Dev or leaving Infra altogether (eg tech/startup). Also see people staying within infra PE but moving from big name GPs to SWFs/Pensions for better lifestyle.
Can you comment on MF REPE as well? One's that do RE company buyouts and platform building, not just buy single assets.
Bump
Also curious
Can anyone comment on top Hf exits for Infra
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Bump. If anyone has jumped from MF Infra to MF generalist PE?
fat bump
Have seen exits to a broad array of opps at the junior level, not all that dissimilar to generalist PE. Folks from my class went on to HFs, other generalist PE and growth equity, corp dev, startups etc. I think if you're more at the senior associate/VP level, you can start to be viewed as an "infra guy" but at that point you should know if infra is for you. Still can be interesting exit opps, but will be sector specific (had one former colleague jump to this pretty cool hydrogen fuel dev co.)
Could you PM ?
An (barely) acquaintance of mine started her own small VC fund, focusing on women health.
Bumpity
Assuming you're at a shop that does buyout deals (so basically any MF/MM fund), Associates have basically the same exits as any other PE since it's functionally the same job and skillset. Not sure what else there is to it tbh...like any sector specialization it'll be easier to do infra stuff but not hard to transition to other sectors at the junior level.
Crazy how people on this site and endlessly looking for exit after exit.
It’s ridiculous. PE IS the exit. You grind up the ladder and collect multi-million dollar carry checks.
What other exit do you need? HF? Aside from this year, they average like 5% a year and have no job stability for a slightly higher paycheck some years.
The next 5-10 years will be more telling given that infra as an asset class has really captivated significant attention/tailwinds recently in addition to the fact that many firms are now subscribing to more asset-light models - the latter of which will give associates more breadth underwriting industrial-like businesses in addition to core
All in all likely a good thing in terms of adding to the diversity of exits moving forward. Great time to be in infra
From what I've seen, it's pretty difficult to transition out of energy / infra PE to traditional PE. I would assume staying in infra beyond a somewhat junior level (e.g., ASO / VP) means you will take a big hit lateraling to another investment role (e.g., MF Infra to LMM / MM would be a pretty good outcome). To be frank, it is a different style of asset class and so fixed asset heavy that it is really more about financial structuring and limiting development spend versus developing an equity story and having operational levers to pull on.
This is not even remotely true. I work in MF Infra PE and all we focus on is how we can spend more development capex to grow our companies
To clarify, I mean true development spend aka project start up costs that could result in a doughnut, not construction capital spend post purchase agreements.
the broader point being there is little demand risk and differentiation in infra as an asset class, the assets are generally good assets based on the fact that you have effectively captive demand (which is the hardest part to de-risk during development phase). This is fundamentally different from say, a consumer goods business.
i completely agree that any smart infra investor should be able to do traditional PE, but at least in my experience the reality of a competitive recruiting market is that firms will often just prioritize the more similar experience making it hard for infra pivoters, especially later on in their career
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