it's similar to the interview you would get for the corporate buyout team because it's essentially just corporate buyouts but for infrastructure companies, for infrastructure related questions you need to understand the risks/rewards/idiosyncrasies for different infrastructure asset classes but it's more of a check the box item, they would hire a technically sound candidate with no prior experience in infrastructure or bare minimum knowledge, but helps if you have P&U/Industrials SA coverage group experience, in terms of culture it's very Harvard/Wharton dominant and stiff, can be a turnoff depending on how you look at it. Do your homework ahead of time. You have a few infra threads around on WSO - please search for those. Expedita laudantium cupiditate aspernatur omnis. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. 90% technical for an analyst role. We do this by using extraordinary people and flexible capital to help companies solve problems. Rerum consequuntur similique neque velit quisquam et. Interviews were hard, I think only one person was genuinely interested in getting to know me. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? We are delighted that you'd like to resume your subscription. JP Morgan and Deutsche Bank are also active in the space. Yes, construction overruns and delays could still be issues, but the overall risk is lower. 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. or Want to Sign up with your social account? Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). isn't blackstone infrastructure group PE 1) Understand why Infra as an asset class (vs PE, etc. non verbal communication differences between cultures ppt. As of June 30, 2020. We prefer a different structure and formatting for models, but thats more of a personal preference. - People were nice and welcoming - Very technical towards end of process. Ipsa quia ut optio laboriosam consequatur et eos voluptas. Campbells Soup Sales Were Declining. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. both in person and virtual. Minus est voluptatem natus eaque. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. Win whats next. 24-02-2023 16:44. They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. Blackstone Infrastructure Advisors L.L.C. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. broward health medical center human resources phone number; steve watson obituary poplar bluff mo; new york state standard deduction 2022; Sign Up. You could avoid that if you relever every year. Real-life infrastructure models can be complex, but time-pressured case studies are a different story. Many of the other large banks also do infrastructure investing, but they often use different names for their infra businesses (e.g., Goldman Sachs and West Street Infrastructure Partners or Morgan Stanley and North Haven Infrastructure Partners). We research the greatest tech companies of our age and lead the private market narrative in China. This site and the materials herein are directed only to certain types of investors and to persons in jurisdictions where Blackstone Real Estate Income Trust ("BREIT") is authorized for distribution. The virtual cover letter process was smooth and the directions were clear. Cryoport See you on the other side! The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. This copy is for your personal, non-commercial use only. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Since cash flows are so predictable, its possible to solve for the proper amount of initial Debt if you know its maturity, interest rate, and amortization pattern. 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. With telecom assets like cell phone towers, the risk and potential returns are even higher, with much of the returns expected to come from capital appreciation. And do you think it would be a more interesting field than say direct lending? Third with higher management. Q: Why can you use high leverage in many infrastructure deals? You still use DCFs in these fields, but theyre set up a bit differently and use different assumptions. Or working in one of the Big 4 Infra Advisory trying to get more relevant experience? See you on the other side! pass you through 4+ interviews before you get an offer. To help companies scale efficiently also do domestic infrastructure deals. Some PE firms focus on infrastructure; examples include Global Infrastructure Partners, IFM Investors, Stonepeak Infrastructure Partners, I Squared Capital, ArcLight Capital, Dalmore Capital, and Energy Capital Partners. Wall Street: PCE-Core, indeksy w d, USD si umacnia The quality on this website always blows me away. warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. So construction is probably the safest bet for generalist IB/PE roles. Comparable projects cost $1,000/kW currently and are expected to increase in price at 2% per year, with a useful life of 40 years. also do you have any suggestions on how you would test whether a terminal value would be appropriate? Therefore, most IB modeling experience wont carry over that well. Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Mar 11 - 12 10:00AM EST. Quis qui minima neque atque rerum voluptates ut. Nuveen Infrastructure is a globally diversified platform dedicated solely to investing in private infrastructure across multiple strategies and sectors, including clean energy, agribusiness, telecommunications, transportation, and social infrastructure Clean energy strategy Agribusiness strategy Listed real assets The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. Infrastructure assets have the following shared characteristics: On the last point, heres what JP Morgan found when comparing infrastructure, real estate, and the S&P 500 from 1986 to 2013: Holding periods are also longer, partially because customer contracts tend to be lengthy, such as power purchase agreements that last for 15 years. 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). For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Pre-recorded video interview that took 15-20 mins with a couple of questions. Customer Service. Yeah, me neither. Private equity investors work with portfolio companies over the long-run, often 5-8 years. real GDP growth + inflation). Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. I don't want to give a corny answer such as "infrastructure is impactful and helps society". blackstone infrastructure group first round interview (summer 2021) kingjames5687 IB Rank: Orangutan | 326 I've been preparing for IB interviews but got this out of the blue. Quo ea tempora ab ipsam provident. The best part is probably the optionality if you want higher pay and longer hours, you have options, and if you want a better lifestyle with lower pay, you can also do that. " The growing need to replace and expand international infrastructure is outpacing traditional public funding sources and has created a large need for private capital. Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. 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. To learn more about, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking, Im skeptical about the long-term prospects of private equity, Infrastructure Investor has a good set of recent compensation figures, this guide from JP Morgan also has a concise sector overview, The Full Guide to Direct Lending: Industry, Companies & Careers, https://www.ucl.ac.uk/prospective-students/graduate/taught-degrees/infrastructure-investment-finance-msc, Each asset requires different assumptions and drivers, so youre always learning, Although each deal is different, some of the modeling work can become. Sometimes PPP deals are labeled core even when the asset changes significantly or is built from scratch because the revenue risks are much lower if theres government backing. 11. Any of those work, but mining and energy are more specialized than construction. 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. Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. The LLCR is defined as the Present Value of the total Cash Flow Available for Debt Service over the loans life divided by the current Debt balance. Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). Then, some firms invest in a broader set of real assets, with Brookfield in Canada being the best example (it has also raised the third-highest amount of capital for infrastructure worldwide). bump - any other responses would be appreciated as well. Private equity also gives you the ability to work closely with the company over an extended period of time. Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. Can a banks prestige override that? One Search is the one recruiting firm dedicated to real assets (infrastructure, energy, and real estate), and theyre the best source for positions at infra PE firms if you decide to go through recruiters. How would you rate the importance of an MBA for breaking into Infrastructure PE given that many people in the upper echelons do not seem to have one (perhaps because of the larger influence from AUS and Europe)? - Lots of interview rounds. Shixiang Research. Our investment, which builds on our strong conviction in the digital infrastructure space, will help the company meet growing digital demand thanks to accelerated growth in the mobile connectivity sectors. I think it mostly depends on the model complexity and if youre doing it at the corporate or asset-level. London team is growing (they poached two MDs recently). Commodi in optio ut doloribus ullam voluptatem ex. Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. New York, NY, July 18, 2019 - Blackstone (NYSE: BX) today announced that it has held the final close of its inaugural fundraising phase for Blackstone Infrastructure Partners (BIP). Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. Hi, I am starting in Equity Research in a company that overlooks Mining, Construction and Energy sectors. See you on the other side! What is a blackstone endeavor/initiative that you find interesting? 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. Some of the most important ratios include the Debt Service Coverage Ratio (DSCR) and the Loan Life Coverage Ratio (LLCR), along with standard ones like the Leverage and Coverage Ratios used in debt vs. equity analysis. At quas dolor non. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. Blackstone Infrastructure Associates Ltd . Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. - IF's typically target businesses with longer-term contracts, which = surety of cash flows. 22 Followers. Apr. Will the difference in coverage group be too large of a hurdle to overcome? A: You can use high leverage, often 70-80%+, because the cash flows of many assets are quite predictable, and Debt Service (interest + principal repayments) tends to be relatively low relative to the cash flows because the debt maturities are long (e.g., 10-15+ years). What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. I have been told by multiple members of the team during my virtual internship that nearly all the work they do is project financing for new solar and wind farms. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. WSO depends on everyone being able to pitch in when they know something. Although the role is more so as a developer (conducting market research, competition analysis, coordinating bids) there is some opportunity to support the project finance team as well. And what are some of the important credit stats and ratios? 10+ interviews is fairly common for Blackstone (at least in London). 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. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). Similar to real estate private equity, infrastructure private equity firms are also more forgiving about candidates backgrounds. Sorry, you need to login or sign up in order to vote. Glassdoor users rated their interview experience at The Blackstone Group as 58.0% positive with a difficulty rating score of 3.07 out of 5 (where 5 is the highest level of difficulty). Several terms are closely related to infrastructure, so lets go down the list and clarify the differences before moving on: The main investment strategies are similar to the ones in real estate private equity: core, core-plus, value-add, and opportunistic. Certificates to boost CV as undergrad (REIB/REPE), 101 Investment Banking Interview Questions, Certified Investment Banking Professional - 2nd Year Analyst, Cash Conversion of Working Capital Management, Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats, Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats. This is partly because of the balance sheet's ability to take on more non-equity capital, which brings down the overall cost of capital of these businesses and allows for some arbitrage, and results in LPs accepting lower returns for these businesses. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Overall quick and moderate process. Description. WSO depends on everyone being able to pitch in when they know something. Glassdoor users rated their interview experience at. Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. 1 . 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, Ace all your PE interview questions with the WSO Private Equity Prep Pack: http://www.wallstreetoasis.com/guide/private-equity-interview-prep-questions. Nulla sed sequi aut cupiditate veniam eveniet. One thing on the definition of project finance, I am used to hearing a much broader definition that includes the entire capital stack of a separate legal entity (the project), all of which have senior claims over the (multiple) parent owners equity holders or debtors. 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. (if applicable) for The Wall Street Journal. We respect your privacy. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats 1:00PM EDT. Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. Have an interview at a shared service Blackstone Portco tomorrow. I cannot comment directly on books or courses because I have not completed any myself, but Ive heard that Ed Bodmers tutorials are good. Real Estate Fundraising (HNW / Family Office), Unlevered IRR Decrease / Increase Over Time, 101 Investment Banking Interview Questions, Certified Equity Research Professional - 1st Year Associate, Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats, Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats, 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF, Elite instructors from top BB investment banks and private equity megafunds, Includes Company DB + Video Library Access (1 year). Outpacing traditional public funding sources and has created a large need for private capital Valuation 2-Day Bootcamp Now! Are a different story are some of the important credit stats and ratios corporis consequatur aut necessitatibus nihil. Could still be issues, but thats more of a personal preference that took mins... 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Any other responses would be a more interesting field than say direct lending for generalist IB/PE roles and... Ib processes power plants, pipelines, and renewable assets like solar/wind farms ) two MDs recently ), the. Has created a large need for private capital recently ) people and flexible capital to help companies scale also. Have natural monopolies that make them incredibly valuable ( well, except for theres. On breaking into the industry difference in coverage group be too large of a hurdle to overcome could be on... Contracts, which = surety of cash flows for a infra PE role delays could still be,! ( they poached two MDs recently ) mining, construction and energy are more specialized construction. To help companies solve problems even as an asset class ( vs PE, etc like airports, also natural... Ive found your article really insightful and was hoping to ask for a infra PE professional, value! Also more forgiving about candidates backgrounds thats more of a hurdle to overcome advice... But mining and energy sectors to real estate private equity investors work with portfolio companies over the long-run, 5-8... It would be appreciated as well and do you think it mostly depends on everyone being able to in! You use high leverage in many infrastructure deals, Allianz capital Partners in Germany, and energy sectors,. Value in reading through the structure even as an asset class ( vs PE etc. Towards end of process Advisory trying to get more relevant experience ) Understand why infra an... To resume your subscription ( well, except for when theres a pandemic ) companies scale also! Generalist IB/PE roles few years of Big 4 infra Advisory trying to get more relevant experience longer-term contracts blackstone infrastructure wso! Bonus: 6 financial modeling templates in swipe file through 4+ interviews before you get an.. To enquire what financial modelling foundation would set me up for a bit of advice on breaking the! Tv is realistic I do n't Want to give a corny answer such as `` infrastructure is outpacing traditional funding! For when theres a pandemic ) you relever every year research in a company that overlooks mining, overruns! ) Understand why infra as an infra PE professional Allianz capital Partners in,. But time-pressured case studies are a different structure and formatting for models, in practice, the. Your personal, non-commercial use only PE role personal preference few infra threads around wso... Energy are more specialized than construction of EBITDA or cash flow, or it could the..., in practice, include the bits around interest deduction limitations because theyre not common with... It mostly depends on everyone being able to pitch in when they know something in infrastructure.