Is Infrastructure Credit a Long-Term Career? Exit Opportunities and Pay Gap vs PE
Currently an Analyst in a PU&I group at an investment bank. Been seeing a lot more opportunities popping up in infrastructure credit – both at dedicated infra debt funds and credit arms of big infra investors. Curious to get a sense from the community:
- Who are considered the major players in the infrastructure credit space?
- What are the typical exit opportunities after spending a couple of years in infra credit? How realistic is it to pivot to infrastructure private equity (core/core-plus/value-add) down the line?
- What does the work-life balance and comp progression look like at the Associate / Senior Associate level compared to infra PE?
- At the mid-senior level (VP/Principal and beyond), how big is the comp difference between infra credit and infra PE — especially when factoring in carry?
- Anything else to be aware of if you're considering infra credit as a medium- to long-term career path?
Would appreciate any perspectives from people who have either been in the seat or seen the moves happen.
Based on the most helpful WSO content, here's what you need to know about infrastructure credit as a career path:
Major Players in Infrastructure Credit:
Exit Opportunities:
Work-Life Balance and Compensation Progression:
Compensation at Mid-Senior Levels (VP/Principal and Beyond):
Long-Term Career Considerations:
Additional Insights:
If you're considering infra credit as a medium- to long-term career path, weigh the trade-offs between stability, work-life balance, and compensation growth. Networking and staying informed about market trends will also be crucial for navigating potential transitions or maximizing opportunities within the space.
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Been working in MM infra for the past few years, now VP. Will try to answer your question but by all mean I am happy to be corrected.
Who are considered the major players in the infrastructure credit space?
Blackrock/GIP are great in their own respect. Blackrock more focused on senior/more plain vanilla debt whereas GIP does more structured credit. Like in the equity team, GIP Credit has a very sweaty reputation
Ares. They do a lot, across the capital structure. Most of the team are the ex-AMP Capital
Macquarie. I have less visibility on their deal flow, only seen them for senior debt recently
Brookfield. Invest across the capital structure and consistently raising capital so seem to be a good shop but from what I heard it's sweaty AF
Blackstone. Bit of a weird animal as they have a team (headed by the former EIG guy) specialised in infra debt but they equally have another team which is part of the BX Credit & Insurance doing similar stuffs (they raised $7bn recently).
What are the typical exit opportunities after spending a couple of years in infra credit? How realistic is it to pivot to infrastructure private equity (core/core-plus/value-add) down the line?
I think it will be extremely hard (I am sure it's doable) to pivot back to infra PE unless you join as a financing specialist. Most of the infra PE shop have 1 or 2 individuals looking at financing across the PortCos
What does the work-life balance and comp progression look like at the Associate / Senior Associate level compared to infra PE?
Depends on the shop you join. It's guaranteed that joining a BX, GIP or Brookfield will be sweaty, however you can definitely join less intense places with better WLB but comp and prestige (if that's what you are after) will be lower. There are plenty of shops doing IG/crossover debt with interesting deals but they are not the MF
Difficult to anwser this, still few years away to receive my carry but I suspect the comp in a tier 1 credit is far better than my LMM infra fund at equivalent level
Any thoughts on comp at the places you mentioned above for senior associate roles?
To take with a pinch of salt but heard that the BX team was paying extremely well. Been told 150-160k base, bonus up to 200% and share plan. I think carried was only available at VP level (or whatever they call the VP equivalent).
However, it would be disingenuous not to mention that a friend of mine went through the interview process and the only available time given was on a Sunday morning (no joke). Draw the conclusions but probably sweaty AF.
what made you pivot from a LMM infra fund to infra credit? I'm a first year asso at a mm infra fund, having done project financing at an IB previously. Thinking of moving to an infra credit shop as I think I enjoy the debt side more but worried I might pigeonhole myself...
Perhaps I was not clear but still work in LMM PE infra. I wanted to pivot into asset backed given I have done a lot of transactions in the leasing space both in banking and in my current role (on the equity side) so I wanted to explore whether a lateral is doable. Short anwser, it's not easy as I now have the infra PE etiquette.
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