Can you work at a megafund after Houston IBD?
Hi everyone, long time reader first time poster.
I'm interning in Houston this summer in energy IBD, and I'm not originally from the Texas area so I don't know much about the exit ops. I know some of the banks place really well in PE, but I was wondering if this is only specific to energy PE? Or is it possible to place at a megafund in NY? If so, which banks in Houston would allow for best placement?
Though there is no such thing as "impossible", working in energy and specifically working in energy in Houston tends to pigeonhole you a bit. The vast majority of IB analysts in Houston that move into PE go to energy funds in the Houston area. If you want to be in NY long-term, it only makes sense to try to move to NY after your internship (with an offer in hand).
As far as MFs go, I think most people would consider First Reserve to be a MF that is focused in energy and has offices in Houston and Greenwich. I'm sure IB analysts from Houston have gone to FR after their two-year stints (not sure about location, of course).
Most PE exits in Houston will be to energy funds like First Reserve, Quantum, Kayne Anderson, Riverstone, Limerock, EnCap, and NGP. KKR has an office in Houston as does BX GSO. Banks with best PE placement are usually considered to be Barclays and CS. I believe, however, that this has less to do with the bank and more to do with the quality of candidate that these groups bring in. By no means are PE opps confined to those two groups however. Great exit opps are still fully in the picture at quite a few of the banks in Houston.
So it's not possible to do non-energy PE? Do any of the energy PE firms have NY offices?
It is possible to do non-energy PE, and some energy PE firms have NY offices.
As others have said, it's not impossible to do non-energy PE, but to do it at a megafund is going to be extremely difficult, especially if it has an energy group (which a lot of them do). I haven't seen a placement with a traditional platform before. You would probably need a strong connection.
Honestly there are more energy funds out there than you would think. I remember seeing more opportunities outside of Houston than in Houston, and certainly quite a few in NY. Also saw opportunities in SF, Boston, Hong Kong, DC, San Diego and LA. There are several large funds that have an energy specific fund. TPG, KKR, BX, Apollo, Warburg (I think), General Atlantic and Carlyle/Riverstone come to mind. All except TPG (SF) have a NY office for their energy group.
CS also sent an analyst to TPG SF a couple years ago and more recently sent one to Apollo. These, and the above, placements are with their respective energy groups. By the way, KKR Houston is mainly focused on upstream, NY predominately does all the other verticals.
Possible but fairly rare. If you don't want to do energy, I wouldn't do Houston.
I want to do energy, and got an offer with a top group in Houston. I just like to keep my options open, and was wondering if there was a possibility of getting out of energy after starting in energy.
Again, it's possible, but much more difficult to do from an energy bank in Houston. If you're confident you want to do energy, I wouldn't worry about it. At some point in life, you're going to have to narrow your options down, that's life.
Citi Houston placed an analyst to KKR NY last year and another at TPG SF this year. JPM Houston also placed an analyst at TPG SF this past year. Jefferies sent one to KKR NY last year as well. That is megafund placement outside of Houston
Are all of these for the large cap buyout funds or other groups under the KKR/TPG name?
I'm betting that the TPG SF is the growth equity platform. I've never heard of the placement from Houston being this strong, especially out of C, JEF and JPM.
I can confirm the KKR ones are both buyout, though the details above aren't entirely correct. Jefferies guy is in Houston, and Citi, though in NY, was for the energy group
I know for a fact that there is NY placement from Barclays and CS but it's predominately in energy. I was wondering if there was any placement in NY/SF for the traditional platforms at the megafunds
Can I ask why you're going into energy banking in Houston if you're so set on generalist / non-energy PE placement?
I had a discussion with a friend about this a few days ago, and was just curious what my other options were after a few years in Houston. I am interested in energy, but then again I'm also still in undergrad and have no idea what I want to do with my life. I like the idea of having open options.
thanks for the help everyone
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