Most banks have a single power and energy group, but I noticed Citi has split theirs. What is the difference? And what would the exit opps from each be, assuming NYC?
This seems like a rather odd organizational structure. Is this due to their recent acquisition of most of UBS's energy team? I see some older threads treating them as one group.
Banks have Natural Resources or Energy groups but they are split between oil and gas in Houston and power/utilities in New York (although some banks execute some oil and gas stuff out of New York).
Citi's Power group is in NYC but I'm pretty sure Energy is in Houston. So find that out because I imagine that unless you're a Texas native, that's a deal breaker.
Power and Energy are pretty different. I would almost say energy is closer to metals and mining if anything because they deal in resource extraction and transportation. Power, on the other hand, is a highly regulated and structured business that requires massive CapEx planning. Obviously they are linked in the sense they could be vertically integrated, but how similar the business models are is much more debatable.
What Citi groups are in LA? Which are in New York?
So what would Energy in NYC look like? Mostly supporting Houston with few exits?
And what can you exit to from Power? Are the same NatRes PE funds (Riverstone, Limerock, etc.) receptive to Power guys, as opposed to Energy/Oil/NatRes?
Citi LA is mostly Metals & Mining, also Healthcare (Pharma). They have a small industrials team too.
I don't know if anything is in LA. Tech is in SF, Energy may be Houston and everything else to my knowledge is in NYC.
Met a Citi banker today with Global Energy and a NYC address on his card, although I'm sure the majority of the energy group is in Houston.
Energy is definitely in Houston. The addition of Trauber made that an easy decision, if it wasn't already.
@RiskyBizness - does that description you gave of power hold true for companies in the alternative energy space? I'm curious if banks work with all types of alt energy companies or just focus on one area such as solar, wind, etc. TIA
Even within the "Clean Tech Space" there are distinctions; Banks sometimes have the Projects i.e. a Wind Farm / Solar Farm which can run into the billions as part of the Power Group, while the company that makes the equipment i.e. the PV panels in the Clean Technology Group.
Based on my experience the Power Groups hold all assets and companies involved in Power Generation - i.e. Gas Turbine CC, Wind, Solar (PV & Thermal), even fuel cells.
The banks will sell any asset to which they received a mandate including projects, and project holding companies
I'd agree with the above. Even in the bank I work for, there has been movement in the short time I've been in the space. I've seen Solar manufacturers in the tech group, with developers in Power, but now all is in Power. That said, quite a bit of the work is in a separate project finance group (a lot of the financing is at the project level, not the corps.)
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