Energy IB Exit Opportunities?

bullmkt247's picture
Rank: Monkey | 48

Hello,

If I were to work in Energy IB (probably in Houston), what would the exit opps be like?

I assume that an analyst at a decent IB could exit into HF/PE/Corp Dev, but would all of these jobs be in the Energy industry, or are generalist firms or other industries (consumer, tech, etc.) hiring people with Energy IB experience? A lot of my connections are to the energy industry, which is why I'm asking about Energy IB specifically.

It's fine with me to work in Energy IB for a few years, but it's not something that I want to be doing long-term.

Thanks for your help!

Region: 
United States - South

Comments (37)

Sep 13, 2015

I turned down an energy IBD offer with a BB primarily because (in my experience) it pigeon holes you into energy. I know plenty of people that have tried leaving energy for other industries, and it isn't easy. That said, energy is a great field to be in, and I'm sure with the right experience and connections you can make it happen. I just don't think it's likely.

Apr 17, 2017

What if you work in midstream/refining energy IB in NY rather than oil & gas in Houston? Since this is not as niche, does it expand opps to move to non-energy roles in HFs?

Sep 13, 2015

To clarify, this is for Oil and Gas.

Sep 13, 2015

Are you pre-MBA or post-MBA? I would think if you did your analyst stint at a top-shop in Houston in IBD you wouldn't necessarily be pigeon holed by industry group if you choose to go for MBA and try to go to the buyside.

If your goal is to do 2 years IBD>buyside; it could be challenging to get out of energy.

my $0.02. Would be helpful if you elaborated on your desired career path.

  • Anonymous Monkey
  •  Sep 14, 2015

As a current energy IBD analyst in Houston, I kind of struggled with this as well. I wanted to do tech or M&A but recruiting at my school in Texas was all oil and gas, at least for the big banks, so I chose to go that route rather than go to a no-name bank. It's definitely more challenging than other industry groups, but it's also pretty interesting and now that I'm in it I feel less inclined to leave. It's a great industry and the price environment is spurring lots of innovation so tech within the energy industry is hot right now and I'm hoping to move to an energy tech VC or PE fund after my time in banking.

But to answer your question, if you go through traditional channels (headhunters / MDs), your exit opps will pretty much only be in energy. If you go another route (MBA, networking, online) you have a shot at leaving the industry - it's definitely easier to get out of oil and gas than in, so not a bad place to start.

Sep 14, 2015

Same thoughts as above. Try to diversify as much as possible.

Sep 14, 2015

Thanks for your input, everyone. To clarify, this would be for a pre-MBA analyst position. I am looking at IB Analyst to HF/PE/Corp. Dev, not really sure what I want to do after that.

I am interested in the Oil and Gas industry, but I am worried about the industry completely disappearing down the road, given the limited supply of oil and moves towards energy efficiency. I want to make sure that I am working in an industry that will be around for a long time. Is this concern a valid one?

Sep 15, 2015
ngp99:

I am interested in the Oil and Gas industry, but I am worried about the industry completely disappearing down the road, given the limited supply of oil and moves towards energy efficiency. I want to make sure that I am working in an industry that will be around for a long time. Is this concern a valid one?

Lol...you should not be worried about this.

Sep 15, 2015
ngp99:

Thanks for your input, everyone. To clarify, this would be for a pre-MBA analyst position. I am looking at IB Analyst to HF/PE/Corp. Dev, not really sure what I want to do after that.

I am interested in the Oil and Gas industry, but I am worried about the industry completely disappearing down the road, given the limited supply of oil and moves towards energy efficiency. I want to make sure that I am working in an industry that will be around for a long time. Is this concern a valid one?

Please ask this to anyone you interview with. Please.

Sep 14, 2015

Limited supply? Nah, just the opposite

Sep 14, 2015

Not a valid concern - we're going to be burning dead animals in this country for a long, long time. Plus even with an O&G banking background, you could probably transition into various energy investing/corp dev roles in the alt energy space, which will be growing for years. Better chance at that if you're in power & utilities, which is slightly different than O&G but not a big deal either way.

Sep 14, 2015

Energy will be around well past our lifetimes. Think of it this way- there will be innovations in tech advances in energy. I think it's a very exciting field right now.

Sep 15, 2015

Barc Power analysts had phenom exits: Providence, Carlyle, BX, 2 megaHFs, and TPG...so depends on group. Don't think it's a pigeonholing group depending on where you are.

Sep 20, 2015

worked with a guy this summer who started in energy ib and who is now in a sell side research role, not too sure if that's a natural progression but just another thing to think of. buyside pm's actually like his research a lot due to the fact that he models much different than other analysts on the street

  • Anonymous Monkey
  •  Sep 20, 2015

Oil and gas focused funds and operators are the most common exits. It's easier to transition to a generalist exit if you're based in NYC, not Houston. Plenty of industry (non-energy) funds will interview you, but your opportunities, all else being equal, will be of a higher quality within the industry you've been working in as an analyst.

If you don't want to do energy, don't go to Houston. Don't really get the undergrad fear of energy that I see on here and from our own recruits.

Sep 20, 2015

Use the search function a large list of the potential exit opps has been hashed out including Riverstone, Fortistar, FirstEnergy, and a bunch of others.

Easy exit opps include those guys, slightly harder opps include any PE/HF assuming you get LBO and Debt transaction experience. Check out all of the NR/Infra threads that have popped up recently or just search for stuff I have posted. For reference I was in a power group and now work at MacCap in Property (mostly).

Sep 20, 2015

Energy or renewables fund: Riverstone, First Reserve, ECP, etc

Sep 20, 2015

Tristone, silverlake,

Sep 20, 2015

Top firms like Simmons & Co. Tudor Pickering & Holt send guys off to HBS on a regular basis, doesn't matter where you are, all that matters is the substantive work you're doing.

Sep 20, 2015

pumping gas at exxon mobile

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Sep 20, 2015

From what I've heard, most PE funds don't invest in the natural resources sector, but I think Energy would be a great group to be in with all the clean-tech stuff going on. There's a hedge fund for practically every sector out there, so there will def be opportunities in natural resources there. As far as recruiting goes, as long as you work at a good bank, you'll still build the skill set to be able to work across almost any industry group.

Best Response
Sep 20, 2015

From what I've heard, most PE funds don't invest in the natural resources sector

I guess KKR, BX, Bain Cap, and TPG don't count as PE funds?

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Sep 20, 2015
tothedeath:

From what I've heard, most PE funds don't invest in the natural resources sector

I guess KKR, BX, Bain Cap, and TPG don't count as PE funds?

Nope, of course not.

Sep 20, 2015

Aside from KKR, Bain Cap et al there are shops like First Reserve and Lime Rock Partners who invest in the energy space only!

Sep 20, 2015

Id be interested in hearing about this as well.

Jul 29, 2017

Going to bump this.

Say you landed with TPG"s energy group in SF, is it possible to transition to more a generalist role or another industry once you got there?

Jul 30, 2017

TPG's energy group is based out of NYC. That said, it's definitely doable to transition to a generalist role out of an energy megafund

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Jul 30, 2017

Do you know how many people they take a year?

I know Citi placed one. Who are usually the best banks for energy placement....Barclays, CS, Citi & Evercore?

Jul 31, 2017

Anyone know how TPH is placing?

Jul 31, 2017

bump

Jul 31, 2017
Comment

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Jul 31, 2017