PE PortCo Opportunity - Feedback Requested

Hi all, 

I'm relatively new to WSO but have been looking for information about PE firms and PortCos because I've recently been asked to join a couple. I have a healthy career currently and was not looking for a change but these opportunities are making me think otherwise.

Background:

I'm early 30s, BCom, CFA, worked in corporate development for a single utility for nearly a decade. My mandate is to originate transactions and see them through to financial close across multiple utilities. This includes utility-like transactions in the clean gaseous fuels market (waste to energy for renewable natural gas, electrolysis for green hydrogen etc.).

All values CAD

Opportunities:

  1. Status quo at my role. I am a Director, one away promotion from VP, likely within a few years, and two promotions from executive. Executive is not guaranteed of course, but I have a reasonable chance with the goodwill in the organization and might take 15 years. Compensation is healthy, but not extraordinary as we are a utility. Total Comp ~225k, but healthy growth opportunities, and a golden handcuff pension. If I stay in the organization a few more years it will be almost assured I stay for my career as the pension's value will be too great to walk away.

  2. I've been asked to be a C-suite of a ~$100M EV, 20 employee clean fuels company. They are a recent PortCo backed by a sub $1bn PE firm and part of the agreement with the PE was that they hire a new C-suite member to oversee the development of a number of facilities. I would hire a team of 3-5 people to develop the facilities. Each transaction is typically in the $50M range, and they are looking to develop a handful in the next 5-years, originate substantial opportunities in in the meantime, and ultimately seek a liquidation event. Salary + Bonus ~300K, + 0.5% equity. I'm having a hard time valuing the shares as I am unclear on what a liquidation event might look like, having not been in the PE industry before.

  3. I've been asked to be a C-suite of a brand new PortCo, this is a rollover that is lead by a development team and backed by a PE firm from a previous successful transaction. They would ask that I oversee a team to originate transactions in this market. While the company has nothing, with the PE firm backing they are looking to create a team of 15 people. Each transaction in this market is typically $250M in scale. This market will see outsized growth in the next decade partly due to the inflation reduction act in the US. Salary is ~$200k. No bonus, but 1.5-2.5% equity in the business. This structure is putting a lot of the value on the liquidation event, and again I am have a hard time valuing the opportunity.


Concerns/Questions:

  • Thoughts on the compensation presented, they generally seem a bit lower than elsewhere discussed on WSO.
  • Thoughts on the PortCo opportunities in front of me, the risk profile, and potential outcomes in liquidation events. Are PortCo failures frequent/infrequent?. I'm beginning to realize the market may value term sheets and originated deals with a design basis, meaning there is not too much risk that the portco is a failure? 
  • What does life look like after a liquidation event? I'm valued in the marketplace, however I sometimes have a concern if these companies do not succeed, it will put a stain on my career after 4-5 years and I'll be stuck mid-30s without a clear career path. 

Thanks for your consideration,  

 

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