Aurex Insight: Energy Financial Service
Energy Financial Service Review Q2 2019
Welcome to the latest edition of our Energy Insights Energy Financial Services quarterly update. In this issue we will be providing anecdotal market commentary and highlighting notable market moves from the last quarter.
While there have been a number of senior moves in the energy market, Aurex Group’s search engagements throughout the second quarter have been primarily focused on two areas:
1.PIacing mid-level finance professionals into energy portfolio companies
For example, PortCo’s look to hire mid-level professionals to support the CFO in day-to-day corporate finance including modeling, due diligence, reporting and consolidation, as well as commercial activities such as managing external stakeholders and sitting as a member of the deal team.
2.PuIIing Energy M&A VP/Senior Associates from middle market investment banks
Compared to their counterparts at bulge brackets, Associates at established middle market firms may have executed deals from start to finish (originate, structure, close) rather than seeing only a segment of the deal process. This makes them potentially more valuable for Corporate Development, Private Equity, or Advisory roles.
We have witnessed a surge in demand for these profiles within the power, renewables and midstream sectors. Companies are looking to boost their mid-level bench strength but also attract plug-and-play professionals who can operate at a high level without additional training or education (or salary overhead).
The proposition is mutually beneficial for companies and candidates as the former seeks to accomplish as much as possible with the fewest people and younger professionals aim for more commercial exposure, responsibility and faster career development. A smaller, or leaner, team affords candidates broad transactional exposure, so it is worth considering despite potentially lower compensation.
We are still seeing predictable and consistent demand for top Associate-level talent from the majority of Aurex Group’s client base – investment banks, private equity, and operators alike.
For a discussion around recent mandates, compensation or other hiring trends across the upstream, midstream, or energy services sectors, please do not hesitate to get in touch.
Liam King, Head of Energy Financial Services