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also interested
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Interested in split between energy and non-energy inbounds.
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Most Texas (oil & gas / generalist) funds kick off a few weeks post the true on-cycle shit show.
Will be honest, recruiting for (non O&G) PE opps outside of Texas from Houston O&G isn’t easy. It used to be further complicated by travel logistics, especially given how late notice for on cycle actually is. Nowadays / this cycle, with the proliferation of zoom, firms are much more flexible. However, O&G analysts are still at a disadvantage both relative to the NYC / SF / LA pool (due to applicability of experience + optics) and have the added challenge of standing out among cohorts, especially in this environment with the number of candidates with the same idea / trying to get out.
If the goal is just to get out of O&G and you’re open to staying in Texas, you can definitely get looks at any fund. Even Vista and SSP (Austin) have looked / interviewed O&G kids this round — don’t know if they gave any offers but know there were interviews.
Been around for a few of these and gone through it so happy to answer other questions
Can you explain how one should go about indicating interest for non-O&G funds to the HHs but still be kept in the loop for O&G as well?
How does the O&G On-Cycle contrast with the NY on-cycle?
Does networking play a bigger role?
The messaging is nuanced but I think headhunters broadly get it. Would just be upfront saying you value a generalist experience and would like to prioritize that, but you like your current job and are open to O&G / ET opportunities. By virtue of you having a niche skillset, you’ll still be considered for those opps (they couldn’t afford to disqualify everyone that expresses interest in something else lol)
On cycle for the energy specific funds can be a little more relationship / networking focused (EnCap, NGP etc. often don’t use head hunters) but there are a ton that do incl. all of the energy arms of the megafunds in nyc
Does a shop like Jefferies still get looks at all Energy PE shops?
Yeah, if you’re at Jefferies you’ll get looks for pretty much any position in o&g investing
Curious if any Houston / O&G analysts have been recruiting for any distressed / special situations roles and what that process has been like - your messaging / story, model tests / case studies, feedback, etc.?
I’m particularly curious because of the many distressed situations that came about the last 1-2 years. I’d imagine some of you (who are interested in this niche area) would use this as a “way out” of O&G, no?
Yeah, definitely a viable path and if you’re at an EB platform with RX exposure, you can tell that story. Have seen it happen but in my experience, general RX analysts will still be in pole position just given how niche O&G operations are
For sure. When you say generalist RX analysts have an advantage, is that your take / guess or is that backed up with some sort of feedback? Not trying to call BS - just genuinely curious.
I’d imagine analysts from EVR, PWP / TPH, HL, MOE could make a pretty compelling case, especially to a shop like Oaktree or Silver Point. These Houston EBs were very active and the usual suspects of distressed HF / PEs were involved in a lot of these RX’s during the down cycle.
It might take a little more effort to get your name out there, but I’m sure once your foot is in the door of a process or a shop, it won’t be that bad. Energy and distress have gone hand in hand the last few years
Worked in O&G and ended up at a Distressed Shop (SP/Contrarian/SVP/Farallon). A lot of those firms won’t touch O&G and the ones that do are in it for the quick buck. Nobody wants to own those assets because of how easy you can get burned.
Frankly speaking, RX analysts have a huge leg up just due to number of reps. The O&G banker might know how to do an upstream model but who is the guy who files the POR, runs the waterfall etc. If we are hiring a junior guy, 99/100 times it’s from an RX shop (and likely one that we’ve worked with and seen the analyst in action).
Interesting. How would you rank analysts and associates from MOE or HL who are cross-product and do everything from industry coverage to all the Rx work within those O&G Rx deals?
Can also confirm that most distressed funds aren't interested in hiring Houston bankers because:
1) Most distressed funds are generalist in nature, and generalist analysts in NYC will also be staffed on energy deals. Most of the boutiques will cross-staff offices for their restructuring deals. If you were an analyst anytime in the last 4 years in NYC, you were probably on some sort of E&P or OFS restructuring that you probably didn't want.
2) Most distressed teams already have a dedicated energy investor - know a couple of funds with 1 analyst that just covers all E&P. Pre-COVID, a lot of these funds were already shedding their teams and transitioning their O&G analysts towards industrials, power, or out the door. Lot of funds got burned and rationally decided not to play with fire anymore so they're just not hiring energy-focused analysts. (but who knows will current pricing environments)
3) You can do a quick LinkedIn search, but most of the Houston boutiques actually have decent energy PE exits because they're all generalist across M&A, A&D, and RX. So, there's sort of a implied route from these boutiques to your KKRs, Riverstones, BEPs, and NGPs of the world. Even if you tell a HH you're interested in distressed, they'll probably send your resume to 10 energy shops for every 1 distressed fund because it's in their best interest to land you at a energy firm. It might even be easier to go from a place like Evercore Houston to vanilla PE than to distressed just based on who they're willing to send your resume to.
The Houston RX angle to special sits/distressed funds makes a lot of sense logically, but there just weren't that many actionable ideas in the past because you'd have secured creditors barely making a 10% recovery on some of the crap out there. Know there's been a increasing amount of capital flowing in from both L/S equity and distressed shops recently (lot of post-reorg equity sits that've killed it in the last year), so maybe things will change going forward.
Seems like there are still a good amount of infra/energy funds that are located in New York. How does recruiting for those work? Presumably there are a good amount of people who want to stay in energy/infra but maybe don’t want to be in Houston long term, right?
Also interested in this. Interested in infra/energy type work, but would like to transition to New York if that is a thing that people do
That’s exactly right. Coming from Houston O&G you’ll get looks for most infra funds irrespective of location.
Would note that some of them that have a Houston office will tend to divide operations accordingly and run traditional energy infrastructure out of Houston (and recruit with preference locally) and comms / renewables / transport, etc. out of NYC (and recruit with preference accordingly).
Many infra funds have backed out of energy infra/midstream so the path from oil and gas to infra is a lot more tenuous these days.
ECP, EQT, Alinda all multi B funds that have written midstream out of their mandates
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