Large Cap Infrastructure Investing

I've read through the infrastructure AMA's and other posts on this forum which have been helpful, but I'm looking for a bit more detail on strategy and culture at the MF's within their infrastructure platform. There are a number of posts already on some of the infrastructure specific funds (i.e. GIP, Stonepeak, etc.) but I'm looking more at the Blackstone/KKR/Carlyle's of the world.

If anyone has any specific insights on these MF's in terms of their strategy, culture, recruitment process, etc. that would be great. As context I'm an Associate at a MM infrastructure fund and I'm thinking of recruiting off-cycle as a lateral.

 

IMO only a few of the MFs really play well in infra.  Would put Blackstone at the top (think they lost a lot of infra talent when Stonepeak spun out but still solid), followed by Apollo, then KKR, then Carlyle.  Can't speak to hours at KKR/Carlyle, but you'll work pretty hard at Blackstone and Apollo.  Worth noting that Blackstone's Tac Opps seems to do a lot of telecom/digital infra. 

 

How about I Squared? Anyone hear how life is like there?

Reputation is mediocre at best and their associates aren’t impressive in terms of background or competence 

Caprock and Pinnacle were awful deals - Whiptail also went nowhere

 

Have a buddy at GIP. Place is insanely sweaty and from the people I know at MIRA, it’s not much better over there either. Infra investing requires such granular research that it is nearly impossible to have good WLB. At least pay is very solid across most infra shops. 

 

Would echo GIP having a sweaty/hardo culture - have heard so-so things about Brookfield culture as well.  Stonepeak is supposedly better in terms of WLB, and another strong name in the space.  Infra as an asset class does it lend itself to more associate-level work given how granular/technical the modelling can be (almost to the point of false precision). 

 

Re infra lending itself to more associate level work I completely agree. However I have to say, at least at my shop, it doesn't get remotely better at the next level. My VPs/Principals are grinding just as much as I am and it doesn't really get better until you hit the MD/Partner level. When I think about the next 5-7 years of my life, I would hope that things get a bit better, but that won't be the case if I stay put. I'm assuming that this is the case at the names mentioned above, but thought I'd ask anyways.

 

Seeing as your anon, would you mind sharing what fund you’re at?

 

There was somehow a misconception that seemed a bit more prevalent maybe 4-8 years ago that the Infra world was easier and culturally more laidback. But today, I think it couldn’t be further from that. Everyone I know in Infra gets absolutely worked to the bone. The modelling and diligence is incredibly granular, naturally time consuming and sometimes overly technical to the point of being boring. And unless you’re at a MF or strong UMM/large cap independent manager (there only a few; e.g GIP, Stonepeak), the comp I don’t think is even that great. MIRA and Brookfield are huge, sure, but the pay is not going to be on par with traditional UMM/MF PE. It seems like a tough grind to be honest.

 

There was somehow a misconception that seemed a bit more prevalent maybe 4-8 years ago that the Infra world was easier and culturally more laidback. But today, I think it couldn't be further from that. Everyone I know in Infra gets absolutely worked to the bone. The modelling and diligence is incredibly granular, naturally time consuming and sometimes overly technical to the point of being boring. And unless you're at a MF or strong UMM/large cap independent manager (there only a few; e.g GIP, Stonepeak), the comp I don't think is even that great. MIRA and Brookfield are huge, sure, but the pay is not going to be on par with traditional UMM/MF PE. It seems like a tough grind to be honest.

Any numbers on the MIRA side? I’m familiar with Brookfield and GIP comp but haven’t heard much on the MIRA front

 

GIP and Stonepeak comp is very high. 1st year AS at 375-400, 2nd years clear into the mid 400s. i'm pretty sure they both also give carry on top of that 

 

Proper difference between doing infra debt at insurance companies above (BBB- and above, with occasional BB+) and alternative managers like KKR, GIP, Ares, etc. (truly opportunistic, incl NR pieces and prop sourcing). Comp likely ~half at insurecos (high 100s vs. PE-like 300+ at MF arms). Lifestyle obviously a lot better at insurecos. 

 

Congrats on the offer. How did you find the course? I have an offer as well for infra pe. I am getting the WSP course to be prepared for the job as opposed to get the job because I am from non infra background and want to be value add from day one. Let us know if you keen to join us,$100pp is good deal

Regards, 007
 

Used this myself (and only got 50 - 60% of the way through the videos) for a UMM case study I had 24 hours to complete. Honestly, the WSP Infra workshop was probably overkill for what the case study and model required, but still handy to have none the less.

 

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