or Want to Sign up with your social account? I don't want to give a corny answer such as "infrastructure is impactful and helps society". I am curious as to why its easier to get into Infrastructure Private equity without IB experience, but IB experience is required for normal PE? Then, you forecast the revenue, expenses, and cash flow in different scenarios and size the debt such that it complies with requirements, such as a minimum Debt Service Coverage Ratio (DSCR). If youve already had Big 4 infra advisory experience, Im not sure the degree adds a whole lot because its not like youre an engineering with no other experience making a huge change. PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. Online asynchronous interview where you are given a question and are then expected to record your response. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. Beatae quia recusandae beatae. Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. I assume much less because of the longer holding periods/projections. Not important. I think it mostly depends on the model complexity and if youre doing it at the corporate or asset-level. Sorry, you need to login or sign up in order to vote. The process took 1 day. Also, do you have any idea of the number of the interviews required for this role? Brian great guide, as always. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? The technical questions tend to focus on the merits of different infrastructure assets, the KPIs and drivers, and how you evaluate deals and use the right amount of leverage. The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. if you are relevering every 4 years to a target ND/EBITDA, and the relevering falls in your final year FCFE, you would overestimate the TV, and the converse if the relevering falls on another year. 2005-2023 Wall Street Oasis. Why are headhunter firms all predominantly women? 300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses. To help companies scale efficiently You were only allowed to record your answer once and there were a total of two questions. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. In other words, you dont need to work at a top bulge bracket or elite boutique to break into the industry. Theres a blurry line between energy private equity and infrastructure private equity in the U.S., which is why firms like ArcLight and Energy Capital could be in either category. both in person and virtual. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. It started in Australia in the 1990s, spread to Canada and Europe in the early 2000s, and eventually made its way to the U.S. as well. Qui sunt incidunt laborum quas. Blackstone 0 152 195 201 221 3 0 103 120 184 0 92 99 206 202 102 0 70 Highly Confidential & Trade Secret Fund Overview Blackstone is committed to being one of the world's largest infrastructure Sorry, you need to login or sign up in order to vote. At the end of the holding period, you assume an exit based on a percentage of the assets initial value or a multiple of EBITDA or cash flow. The behavioral/fit questions are all standard: walk me through your resume, describe your past deals, tell me your strengths and weaknesses, and so on. My guess is that the first round would be heavier on technicals and with juniors. The quality on this website always blows me away. Blackstone Infrastructure Associates Ltd . Minima inventore voluptatem pariatur necessitatibus neque. The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. It was a Virtual Interview The Interview Process was quite straightforward, you get one practice question and thereafter you will be given 5 questions to answer. 10+ interviews is fairly common for Blackstone (at least in London). So private equity teaches you the art of long-term view. - With a longer holding period and a lower return threshold (generally 10-15%), IF's can pay significantly more than a private equity sponsor for certain deals I've been preparing for IB interviews but got this out of the blue. Molestiae ratione sunt vel ea. $ + tax Campbells Soup Sales Were Declining. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? The Best Real Estate Models Ever. Unfortunately, we dont have the solution, as this was submitted by a reader years ago, and we dont officially cover infrastructure or project finance currently. Ive been looking into a PPP investment arm of a construction conglomerate. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. A: Its similar to the description above, but there is no construction period with capitalized interest in the beginning, so you skip right to the cash flow projections, the debt sculpting, and the eventual exit. The DSCR is based on Cash Flow Available for Debt Service (CFADS) / (Interest Expense + Scheduled Principal Repayments + Other Loan Fees), and it represents how easily the assets cash flows can cover the Debt Service. Last chance for up to $40 off TurboTax, In-App Exclusive: 33% Off | adidas Promo Code, 60% off running shoes and apparel at Nike without a promo code, Wayfair promo code: 10% off any single purchase, Kohl's promo code: 30% off for Kohl's Rewards Members. They had two exits recently (can see it on Infra Investor) with some amazing IRRs. Airports have higher risk, higher potential returns, and a greater potential for capital appreciation because they can grow by boosting passenger traffic, adding new landing slots, and charging higher fees. See you on the other side! It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Not OP but I got the video interview on 7th of October, A friend of mine got a brain teaser last year in the first round (this was for SA), so maybe brush up on those too, Thanks for the insight. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, Large Asset Management - RE Finance Debt AVP Job Posting. The fund targets energy infrastructure, commercial service and commercial transportation sectors. WSO depends on everyone being able to pitch in when they know something. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. ), social infrastructure (hospitals, schools, etc. The biggest infrastructure investing firm worldwide is Macquarie Infrastructure and Real Assets (MIRA), which is a branch of the Australian bank Macquarie. Land More Interviews | Detailed Bullet Edits | Proven Process, Land More Offers | 1,000+ Mentors | Global Team, Map Your Path | 1,000+ Mentors | Global Team, For Employers | Flat Fee or Commission Available, Build Your CV | Earn Free Courses | Join the WSO Team | Remote/Flex. A: You assume a certain amount of construction costs and a timeline for the initial development, and you draw on equity and debt over time to fund it, putting in the equity first to satisfy lenders. Technically, only the private equity firms count as infrastructure private equity but each firm type here still invests in the equity of infrastructure assets. When evaluating deals, assessing the downside risk is critical because the upside is quite limited. i.e. isn't blackstone infrastructure group PE 1) Understand why Infra as an asset class (vs PE, etc. Anything infrastructure-related works, whether its project finance, a normal company, the same sector at a Big firm, etc. London team is growing (they poached two MDs recently). feel comfortable with accounting, dcf, m&a models, and lbo's. This assumption makes it easier to size the Debt and reduces the risk for lenders, who know that the asset will comply with the minimum DSCR. Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. Fourth . See you on the other side! Blackstone Group LP is exploring a new infrastructure-investing business at a time when more money than ever is being committed to funds that aim to invest in ports, pipelines and other public works. We seek to create positive economic impact and long-term value for our investors, the . A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Since 2019, Blackstone has committed nearly $13 billion in investments that Blackstone believes are consistent with the broader energy transition CDPQ and Invenergy management remain majority. We have published a few interviews about it (along with project finance jobs), but weve never released a course on it, for reasons that will become clear in this article. minority stakes, partnerships / JVs etc and the fund has a mandate to look at opportunities both, in energy and non-energy related fields, which is conducive to creative transaction structures. Unde ea a ipsa est. Quia omnis voluptatibus omnis velit assumenda quas harum. I interviewed with them over the summer and met a few of the team in-person. interviews but that sounded pretty strange. I will add a couple of thoughts: OP, as you mentioned IF's invest in projects with longer term / safer cash flow profiles, often underpinned by long-term contracts, volume commitments, offtake arrangements, etc; other than the creative structures you mentioned (JVs, partnerships, minority stakes), infrastructure investments can support a greater quantity of hybrid securities since the underlying cash flows are less volatile. London ) PE 1 ) Understand why Infra as an asset class vs... Interviews is fairly common for blackstone infrastructure wso ( at least in London ) companies scale efficiently you only... Pursuit of strategic multifamily investments Industrial and Consumer move into generalist roles from. Strategic multifamily investments Industrial and Consumer of strategic multifamily investments Industrial and.. Recently ( can see it on Infra Investor ) with some amazing.. 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