Switching from phys nat gas to energy vc?

Hi Anons,

i’m a jr gas trader and have been getting some looks to get into energy vc firms. it would be really different but I have always been interested in the vc world , what are your thoughts on a switch?

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Well something in your profile fits "banker" as well as "phys trader". I would say based on the people I know who went that route their skills was very close to being more on the "origination / physical gas trader" side of things. 

Meaning they go to all the LDCs, they collect rofrs on pipes and small AMAs to keep rolling forward. They understand the scheduling tricks and so on. 

So being a VC is not that different from knowing in two years some pipe could congest and building a business to execute that strategy. That said I think VC (due the day-to-day) will have much more transferable skills to other industries versus physical commodities. 

Comp, truly do not know much on comp for VC world that said my impression from outside is that average phys gas trader comp is much stable than VC but as mentioned, less transferable skills so more senoir get harder to move and receive similar comp.

Market environment; if you listen to HCinsider podcasts or follow what some of the banks are doing there is a major glut right now for "energy origination" so would think the VC market outlook would have to be similar since energy transition requires new investment/technologies and so on. Lots of vendors like Orennia have popped up so I assume they have clients who are busy looking at this stuff. 

 

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