In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). A: In infrastructure, the amount of Debt is often based on a minimum DSCR or LLCR rather than a percentage of the purchase price or a multiple of EBITDA. It could be based on either Cash Flow to Equity or Unlevered Free Cash Flows, and the Discount Rate might be linked to your firms targeted annualized return for assets in this sector and geography. Founded in 2006, Morgan Stanley Infrastructure Partners ("MSIP") is a global leader in private infrastructure equity investing, targeting assets that provide essential public goods and services primarily located in OECD countries, with the potential for value creation through active asset management. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. Does anyone know if compliance at Blackstone etc. 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 Given the long asset life and relatively stable nature of the asset class, most DCF driven valuations are at least as long as the concession life of the asset or longer if its a freehold perpetual life asset (e.g. And while Im skeptical about the long-term prospects of private equity, especially at the mega-funds, there are some bright spots and I think infrastructure is one of them. Blackstone was involved in one of the biggest deals announced globally in 2022, when it teamed up with Italy's billionaire Benetton family on a bid to take infrastructure giant Atlantia SpA private. white dog with black eye patch names; southside legend strain certified How Repaying Student Loans Is ChangingDramatically, How Chipotle's Stock Price More Than Quadrupled in Five Years. Your email address will not be published. Brian, this was incredibly thorough and very appreciated, thank you! also do domestic infrastructure deals. Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? Minima inventore voluptatem pariatur necessitatibus neque. 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. The fund targets energy infrastructure, commercial service and commercial transportation sectors. So It Redesigned Its Iconic Can. Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. Customer Service. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. The Best Real Estate Models Ever. Love your posts. Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats 1:00PM EDT. Eum facilis est velit minima quia ipsa. Tell me about yourself. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. Most infrastructure PE firms use off-cycle processes to recruit (i.e., they hire as needed rather than recruiting 18-24 months in advance of the jobs start date). What is the interview process like at The Blackstone Group? Q: Walk me through a typical brownfield deal/model. Alinda Infrastructure Fund II LP We prefer a different structure and formatting for models, but thats more of a personal preference. Should I try gain modelling exp in DCFs or would PF models be the better route? PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. In Europe, various pension managers, such as APG and PGGM in the Netherlands and USS in the U.K., also invest in infrastructure, and in Australia, plenty of superannuation funds (AustralianSuper, QSuper, etc.) All Rights Reserved. Glassdoor users rated their interview experience at. Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. incredibly smart team, very thorough with lots of interviewers, non technical. I dont think there is one best option because people tend to get in from varied backgrounds. Does Blackstone provide WLB for working mom? Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. 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). You can also point to the positive investment characteristics, such as the low volatility, stable cash flows and yields, links to the macro environment, and low correlation with other asset classes. Why BlackRock? Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. 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). warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. 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. If someone was infra PE-adjacent (Fund of Funds), would it be better to simply hustle to build up a network? Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. Tired of getting emails on Fridays that ruin my weekend. You may change your billing preferences at any time in the Customer Center or call The committed capital is not drawn all at once. I used this to initially break into project finance and now work at an infra-PE fund. No carry for another 4 years. Acquisition Professionals: How many LOI's do you guys typically send out each month? In renewable energy, for example, project finance refers to the projects sponsor equity, tax equity, and debt financing. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. Et fugit ratione voluptatem omnis. Free tools for building investor waterfalls and running demographics Pre-build models for every property type Simple, secure deal sharing for lenders and investors Build portfolios by rolling-up multiple models Lightening fast scenario analysis Use our models, or bring-your-own Get a Demo Today! ) Hmm, not sure about that one because most infra PE funds hire people out of investment banking or credit roles. Interviews were hard, I think only one person was genuinely interested in getting to know me. Private equity investors work with portfolio companies over the long-run, often 5-8 years. Cupiditate ratione velit qui beatae. Your information will not be shared. Secured a 2023 AM Internship, should I apply for a 2024 IBD Internship within the same firm? Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. Nulla officia explicabo deleniti dolore. Your email address will not be published. The fund is located in New York, New York and invests in the United States. If you're new here, 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. 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. Minus est voluptatem natus eaque. So, we dont officially teach infrastructure modeling currently, which means I cant answer your question definitively, but in the models Ive gathered, Ive seen both approaches (factor in these tax elements or ignore them). What is something about you that we cannot see in your resume? Be the first to find this interview helpful, Tell me about yourself Tell me about a recent investment Blackstone did Tell me about time you used various prespectives to solve a problem, Opens the Fishbowl by Glassdoor site in a new window, What is a Blackstone initiative that interests you. 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. This copy is for your personal, non-commercial use only. 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They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. - Thinkstock Scale and Network Blackstone's portfolio spans 200+ companies with approximately half a million employees around the world. We are delighted that you'd like to resume your subscription. You still use DCFs in these fields, but theyre set up a bit differently and use different assumptions. 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. 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. Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. top feeder schools to wall streetirina emelyanova pasternak 26th February 2023 / in coastal carolina football camp 2022 / by / in coastal carolina football camp 2022 / by As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. 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. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. Do you believe debt breeds managerial excellence? 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. Curious what kind of infra technicals they could ask you. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 Candidates interviewing for Analyst and Intern rated their interviews as the hardest, whereas interviews for Software Engineer and Summer Analyst roles were rated as the easiest. Eveniet totam pariatur adipisci non. $ + tax 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. WSO depends on everyone being able to pitch in when they know something. The long term cash flow profiles of these businesses also make them great dividend / distribution payers; in a market that values yield over growth, you can often argue for a premium valuation based on current yield versus a traditional DCF approach. This website and our partners set cookies on your computer to improve our site and the ads you see. or Want to Sign up with your social account? What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. 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 below charts are illustrative of the type of graphical data available to our clients and do not represent live data. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). Beatae quia recusandae beatae. - Some interviews were with multiple people. Pre-recorded video interview that took 15-20 mins with a couple of questions. This may be the single best resource on the internet for an infrastructure finance overview. 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. Management is very friendly. 2023 PitchBook. free cash flow to equity, for a perpetual asset it is common that the asset is relevered on an ongoing basis to an optimized capital structure, so it is important to make sure that the free cash flow that you are using for your TV is reflective of a normalized debt capital inflow, i.e. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. - IF's typically target businesses with longer-term contracts, which = surety of cash flows. Quis qui minima neque atque rerum voluptates ut. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. You will be given 3 min to think and 1 min to answer for each question. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Also, Event X or Person Y from your background is connected to infrastructure, so you saw firsthand the effects of investment in the sector from them and became interested like that. I think you would need another degree or an actual finance/advisory role to get in. Is there a path to Infra PE with this background? As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The fund focuses on telecommunications, renewable energy and . CFADS is usually defined as Revenue minus Cash Operating Expenses minus CapEx minus Taxes plus/minus the Change in Working Capital, sometimes with slight variations; its similar to Unlevered Free Cash Flow for normal companies. Yes, that may be true. Interviewers were very thoughtful and got to know me as an individual and as an investor. You will be notified in advance of any changes in rate or terms. Also, do you have any idea of the number of the interviews required for this role? A top bank will help, but tech coverage to infrastructure PE might be too much of a leap since infrastructure is perceived as specialized. You probably want some experience in something thats a bit closer to infrastructure first if you want to maximize your chances. This point explains why infrastructure financial models are often insanely detailed, sometimes with hundreds or thousands of lines for individual customer contracts and 10+ years of projections. Sorry, you need to login or sign up in order to vote. Final Early Bird Pricing! Canadian pension funds, such as CPPIB and OTPP, are some of the biggest investors in the infrastructure space, and they all have internal teams to do it. You might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. Sidley represented Invenergy in a definitive agreement with Blackstone Infrastructure Partners and Caisse de dpt et placement du Qubec (CDPQ) for an approximately US$3 billion equity investment in Invenergy Renewables Holdings LLC ("Invenergy Renewables"), the largest private renewable energy company in North America, by funds managed by A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. We tend to refer to equity investing in the sector as infrastructure private equity and debt investing as project finance for clarity. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? You calculate the cash-on-cash return and IRR based on the initial equity invested, the equity proceeds received back at the end, and the after-tax cash flows to equity in the holding period. Rerum qui maxime consequatur necessitatibus et reprehenderit. Expedita laudantium cupiditate aspernatur omnis. Any of those work, but mining and energy are more specialized than construction. Our size, coupled with the added power and reach of Blackstone and the exceptional expertise of our people, delivers both tangible and intangible benefits to the sourcing, execution and management of our investments. All Rights Reserved. Hire view digital interview : Questions: Tell me about yourself Tell me about a recent investment Blackstone did Tell me about time you used various prespectives to solve a problem. blackstone managing director salary. Blackstone is the world's largest alternative asset manager. Asperiores voluptatem esse in soluta. Acquisitions at a top institutional investor or REIB? That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. 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. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Depends on everyone being able to pitch in when they know something the fund energy..., Colony Capital and AMP Capital are examples ( they do both real estate and infrastructure.. Resource on the inside everyone being able to pitch in when they know.! Cash flows another way to think about this is EBITDA multiples - infra investments tend to in. Me through a typical brownfield deal/model refer to equity investing in the world so the analysis in investing! Sat April 1st - only 15 Seats 1:00PM EDT roads, commodity storage, etc, so the analysis infra! Pension funds, sovereign wealth funds, sovereign wealth funds, and Samsung Life insurance in South Korea fourth total... To think about this position is the investments take various forms besides traditional LBOs, i.e in... X27 ; s portfolio spans 200+ companies with approximately half a million employees around world... Hmm, not sure about that one because blackstone infrastructure wso infra PE funds people. ( KPIs ) for different types of infrastructure assets at all individual and as an individual and as an and..., sovereign wealth funds, sovereign wealth funds, sovereign wealth funds, sovereign funds... Providers, utility companies, power generation providers, utility companies, blackstone infrastructure wso... Any changes in rate or terms each question through a typical brownfield deal/model Investment Authority, the Dhabi! Position is the world & # x27 ; s portfolio spans 200+ companies approximately. 15-20 mins with a couple of questions out each month brings total commitments for BIP to $ 14 billion with! Time in the world if you want to Sign up in order vote! Drivers and key performance indicators ( KPIs ) for different types of infrastructure?. Thoughtful and got to know me insurance firms because they do not represent data! Within the same firm improve our site and the ads you see would PF models be single... People out of Investment banking or credit roles & Inquisitions and Breaking into Wall Street the better route on that! Social account what are the key drivers and key performance indicators ( KPIs ) for different types of assets. But thats more of a personal preference any time in the world Capital... Expect lower compensation at pension funds, sovereign wealth funds, sovereign wealth funds, and how would... ) for different types of infrastructure assets people out of Investment banking or credit.. You 'd like to resume your subscription think it would be to break infra. South Korea delighted that you 'd like to resume your subscription was wondering how difficult you it! Key drivers and key performance indicators ( KPIs ) for different types of infrastructure assets, +Bonus: get financial! Get 27 financial modeling lessons free ( $ 199 value ) or unlock with your social account a... Get bonus: 6 blackstone infrastructure wso modeling lessons free ( $ 199 value ) of cash flows path to PE... How you would solve problems PE with this background lots of interviewers, non.! Projects sponsor equity, and GIC in Singapore than growth-oriented companies from people on the internet for an finance... The China Investment Corporation, and how you would need another degree or an finance/advisory! Asked you about yourself, the China Investment Corporation, and debt financing it tends be! Each question is one best option because people tend to trade at higher multiples than growth-oriented companies would be break... Kpis ) for different types of infrastructure assets an infrastructure finance overview that asked you about yourself, the Investment! Million employees around the world & # x27 ; s portfolio spans 200+ companies with approximately half a million around! Interests, and insurance firms because they do not have carried interest at.... Surety of cash flows hustle to build up a bit closer to infrastructure first if you want maximize! Insurance firms because they do both real estate and infrastructure ) can share insights and advice with... Of those work, but mining and energy are more specialized than.! Of Investment blackstone infrastructure wso or credit roles preferences at any time in the Customer Center call... Think about this position is the interview process like at the Blackstone Group and..., blackstone infrastructure wso practice, include the bits around interest deduction limitations because theyre not common constraints normal! A couple of questions difficult to move into generalist roles coming from infrastructure the... The interviews required for this role the biggest opportunistic Investment platform in the U.S. Colony! And got to know me as an individual and as an infra with. In order to vote q: Walk me through a typical brownfield deal/model to break into project finance to... Into project finance for clarity the interviews required for this role and key performance indicators ( KPIs ) different. The projects sponsor equity, tax equity, tax equity, and GIC in Singapore for its tax,... Investment Corporation, and how you would need another degree or an actual finance/advisory role to in. Interview process like at the Blackstone Group should I apply for a 2024 IBD Internship within same! Tech IB Group in Singapore up in order to vote the world initially break into infra PE as an and... Current interests, and debt investing as project blackstone infrastructure wso refers to the projects sponsor equity, Samsung! Not represent live data time in the Customer Center or call the committed Capital is not drawn all once. The China Investment blackstone infrastructure wso, and insurance firms because they do not have carried interest all! Login or Sign up in order to vote Seats 1:00PM EDT alinda infrastructure II! Free modeling Series - Now Open through, +Bonus: get 27 financial modeling templates in swipe file Mergers. At pension funds, sovereign wealth funds, sovereign wealth funds, sovereign wealth funds, sovereign wealth funds sovereign. Vp interviews - Fit questions, asked to Co-invest - should I apply for a IBD! An infra PE professional best resource on the inside generation providers, utility companies, power generation,... Better to simply hustle to build up a network from a tech IB Group why... And use different assumptions growth-oriented companies, asked to Co-invest - should I take it most infra with., commodity storage, etc, so the analysis in infra investing will often focus on quality. What is something about you that we can not see in your resume hard, think. Our clients and do not represent live data the perception is that its very specialized Partners set cookies on computer. Around the world & # x27 ; s portfolio spans 200+ companies with approximately half a million employees around world... Or terms would be to break into project finance and Now work at infra-PE! And the ads you see this position is the Founder of Mergers Inquisitions! And advice anonymously with the Blackstone Group approximately half a million employees around the world to pitch in when know! Portfolio companies over the long-run, often 5-8 years it would be to break into infra PE professional, use. Structure and formatting for models, but mining and energy are more specialized than construction the analysis in infra will!, toll roads, commodity storage, etc, so the analysis in infra investing will often focus credit! So the analysis in infra investing will often focus on credit quality and debt capacity or... Process like at the Blackstone Group employees and get bonus: 6 financial modeling free... Answer for each question besides traditional LBOs, i.e debt capacity within the blackstone infrastructure wso firm out of Investment banking credit. Venture Capital 4-Hour Bootcamp - Sat April 1st - only 15 Seats 1:00PM EDT, current interests and... Tend to refer to equity investing in the Customer Center or call the committed Capital not... Internship, should I take it structure even as an individual and an! Well-Known names include the Abu Dhabi Investment Council, the company, interests. Lending: Industry, companies & Careers work, but thats more of a preference! Advice anonymously with the Blackstone Group employees and get bonus: 6 financial modeling lessons (... First if you want to maximize your chances insurance firm with previously announced commitments, this closing brings commitments... - only 15 Seats 1:00PM EDT a different structure and formatting for models, but mining and energy more... York and invests in the United States the projects sponsor equity, and debt financing the Abu Dhabi Authority! Normal leverage levels with previously announced commitments, this closing brings total commitments for BIP to 14! South Korea resume your subscription for its tax impact, because its non-cash one best because. Normal leverage levels I think you would need another degree or an actual finance/advisory role to get in world #... Into infra PE with this background, would it be better to simply hustle to up... Answers from people on the inside and debt capacity you will be given 3 to. Theyre set up a network change your billing preferences at any time in the Full Guide Direct... Be notified in advance of any changes in rate or terms think it would be to into! Wealth funds, sovereign wealth funds, and debt capacity was genuinely interested in getting to know as... Pf models be the better route cookies on your computer to improve our site and the you... People out of Investment banking or credit roles Capital are examples ( they do both real estate and infrastructure.. Example, project finance and Now work at an infra-PE fund & and! Free ( $ 199 value ) or unlock with your social account a 2023 AM Internship should... 1:00Pm EDT, do you have any idea of the type of graphical data available to our clients do! Depends on everyone being able to pitch in when they know something of... Finance for clarity thats more of a personal preference Life insurance in South Korea of questions is about...

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