Why don't private equity players invest in low ROCE industries?

I'm talking about industries like airlines, energy, data centes. And private equity (ex-infra guys).

I believe my question essentially is that while value creation depends on ROCE it's not entirely driven by it. Infra guys investing in areas like tollroads and such, where they run down the asset over a decade or 2, I understand. But industries like data centers and energy, where one can have EBITDA expansion with bolt-on aquisitions and geographic expansion. Why have these industries been a primarily infra play?

1 Comments
 
Most Helpful

Ipsa architecto modi quam veritatis dolorum vel nostrum. Quaerat sed provident quis alias. Quo sit ea et fugiat placeat culpa est. Et ullam et consequatur. Quis harum totam a. Minus tenetur est beatae porro ipsum dignissimos dicta.

Dolor saepe magni nemo et ab modi vel. Ipsum et repudiandae ipsam sunt. Possimus itaque ut quasi. Aut natus voluptatem placeat quia.

Odit error consequatur dolores odit et totam quia. Inventore sed in unde iste. Blanditiis molestiae culpa accusantium. Voluptatem earum vero recusandae inventore rerum enim.

Career Advancement Opportunities

September 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

September 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.3%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Warburg Pincus 98.1%

Professional Growth Opportunities

September 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

September 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (100) $364
  • 3rd+ Year Associate (106) $280
  • 2nd Year Associate (235) $272
  • 1st Year Associate (414) $231
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (273) $126
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (356) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”