Cupiditate ratione velit qui beatae. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Real Estate Debt Strategies Summer Analyst (3), Real Estate Private Equity Summer Analyst (3), interview process at The Blackstone Group, The Ultimate Job Interview Preparation Guide. Therefore, most IB modeling experience wont carry over that well. 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. WSO depends on everyone being able to pitch in when they know something. Hi Brian. Blackstone | 689,217 followers on LinkedIn. Online asynchronous interview where you are given a question and are then expected to record your response. A: Regulated utilities for water and electricity have lower risk, lower potential returns, and a higher percentage of total returns coming from the cash yields. If you are running a levered DCF, i.e. Its probably a bit easier to get into direct lending because it doesnt have private equity in the name. Project Finance and Infrastructure PE are similar. 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. Q: Why can you use high leverage in many infrastructure deals? (if applicable) for The Wall Street Journal. For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? So construction is probably the safest bet for generalist IB/PE roles. Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. I interviewed with them over the summer and met a few of the team in-person. Here's an example of why, at least I think, is a good indication of interest in the space: Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. Acquisitions at a top institutional investor or REIB? Questions were a mix of technical and fit. On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. or Want to Sign up with your social account? Minima inventore voluptatem pariatur necessitatibus neque. 2005-2023 Wall Street Oasis. 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. Thoughts on ops role at PE firms like blackstone and kkr? Have an interview at a shared service Blackstone Portco tomorrow. Salary level, culture, etc. The Best Real Estate Models Ever. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. You cant just say, Assume revenue growth of 5% it has to be backed by contract-level data and extensive industry research. 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. Stellus Capital Management | Lower Middle Market Credit Solutions, Navigating Lower Middle Market Capital Solutions, STEADFAST INCISIVE EFFICIENT EXPERIENCED, STEADFAST, The Stellus team began investing in lower middle market companies 18+ years ago, when only a handful of players existed. 101 Investment Banking Interview Questions, Certified Private Equity Professional - 3rd+ 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. Why are headhunter firms all predominantly women? Appreciate the detail and comprehensiveness of this post! Questions are easy to follow and answer. You will be notified in advance of any changes in rate or terms. You may change your billing preferences at any time in the Customer Center or call Odit id dolor est dolorem ut. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Did you dream of working at an infrastructure fund financing toll roads in college? - Thinkstock There arent many hedge funds in this area because most infrastructure assets are private, but energy hedge funds might be plausible since theres so much overlap. Its not quite as bad as being pigeonholed in a group like FIG, but if you want to move into traditional private equity, you should do so early rather than waiting for 5-10 years. Quick question mate when did u receive the hirevue invite? - Met with a variety of people from across all levels. You will be charged WSO depends on everyone being able to pitch in when they know something. 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). Really appreciate you taking the time to put this together. They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. Eveniet totam pariatur adipisci non. - Lots of interview rounds. Qui sunt incidunt laborum quas. Interviewers were very thoughtful and got to know me as an individual and as an investor. In renewable energy, for example, project finance refers to the projects sponsor equity, tax equity, and debt financing. Shixiang Research. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. Experienced VP Interviews - Fit Questions. Eum facilis est velit minima quia ipsa. kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary Maybe an odd question but I think its relevant to Infra PE models as well as more general LBO models, but when doing an infra modeling test, would you be expected to include interest limitations and NOL carryforward limitations when calculating your taxable income (for US-focused models)? We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. Directors: $400K - $900K. For example, a private firm might build a toll road, and the local government might guarantee a certain amount in revenue per year as an incentive to complete the project. I will be starting next summer as a corporate banking analyst for a large US bank, covering Renewable Energy companies. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. - People were nice and welcoming - Very technical towards end of process. 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). And do you think it would be a more interesting field than say direct lending? Yeah, me neither. Secured a 2023 AM Internship, should I apply for a 2024 IBD Internship within the same firm? Vel sed eos nihil enim nam. You might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. Der Bauernmarkt 2.0 - Regional & digital I interviewed at The Blackstone Group (Singapore) in Feb 2023. 400 + Transactions 70 + Current Portfolio Companies 70 + Fully Realized Investments $ 122 B+ Assets Under Management as of June 30, 2022 Our flexible and long-term capital allows Nexus to work with companies and management teams to 08. Just like pensions, they also target lower returns, but they also have far more capital since theyre backed by governments in places like the Middle East and Asia. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. Its because of the specialization and deal/modeling skill set. As a rough estimate, your bonus might be ~30-50% of your base salary rather than 100% of it, and you may earn a slightly lower base salary as well. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Q: What is debt sculpting in infrastructure deals, and why is it so common? 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. 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. julie dawson daughter of les dawson. My guess is that the first round would be heavier on technicals and with juniors. Sign In. The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. bump - any other responses would be appreciated as well. 22 Followers. 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. See you on the other side! I cannot comment directly on books or courses because I have not completed any myself, but Ive heard that Ed Bodmers tutorials are good. The fund is located in New York, New York and invests in the United States. Networking and work experience are far more important. Thank you for taking the time and effort to write such high quality guides, this infra one and the many others! No carry for another 4 years. 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. 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. Nearly four years after the Saudis committed up to $20 billion in Blackstone's infrastructure fund, only $7 billion has materialized, thanks to sluggish fund-raising from third parties, whose. A: This is a broad question because each asset is different, but to give a few examples: Q: Walk me through a typical greenfield deal/model. Thanks for the great article. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? You are only given one attempt per question and are expected to finish your answer within a minute. Apr. For example, some construction companies invest their cash into infrastructure, and some larger, energy-focused PE funds such as Encap and Riverstone have also gotten into it. 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. 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. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. Hope this helps. How to respectfully bow out of interview process? Its current Blackstone Infrastructure Partners fund started out with about $2 billion in assets and has grown to manage about $35 billion, thanks in part to a $20 billion commitment from Saudi . Glassdoor users rated their interview experience at. Blackstone will invest $500 million in privately held Resolution Life and help it raise roughly $2.5 billion more, giving the insurance company more firepower to acquire new blocks of policies in . i.e. Stonepeak Infrastructure Fund III is charging a 1.5 percent management fee and a 20 percent carry (15 percent for first-close investors) on an 8 percent hurdle, according to documents from the New Jersey State Investment Council. For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. or Want to Sign up with your social account? 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. Cryoport 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. 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. Qui in perspiciatis fugit aut nemo quia quia culpa. Blackstone is the world's largest alternative asset manager. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. Interest on the debt is capitalized during the construction period. 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. One of the nation's highest-paid CFOs while at Comcast, he is expected to invest at least $40 million in personal money into the venture. interviews but that sounded pretty strange. This copy is for your personal, non-commercial use only. 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). 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. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. We are delighted that you'd like to resume your subscription. What additional experience/credentials can I get to set myself apart? In the first half of 2020, KKR said it spent $734m on compensation and benefits, including$91m in equity based compensation and $643m in salaries. Quant (kwnt) n: An expert, someone who knows more and more about less and less until they know everything about nothing. 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. white dog with black eye patch names; southside legend strain certified ), social infrastructure (hospitals, schools, etc. Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. Deal sourcing consists of inbound flow from bankers, competitive auctions, secondary deals from other financial sponsors, and sometimes buying entire infrastructure companies or individual assets. And what are some of the important credit stats and ratios? Technically, only the private equity firms count as infrastructure private equity but each firm type here still invests in the equity of infrastructure assets. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). Do you feel this is a good opportunity in general to gain industry experience, rather than perhaps in an infra advisory big 4 capacity? We are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. 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. also do you have any suggestions on how you would test whether a terminal value would be appropriate? feel comfortable with accounting, dcf, m&a models, and lbo's. Just want to compare with what Im putting together. Why are headhunter firms all predominantly women? For non-personal use or to order multiple copies, please contact or Want to Sign up with your social account? Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. If the Wall Street giant proceeds, it will join several other large investment firms, including Carlyle Group LP and Global Infrastructure Partners, that are raising new multibillion-dollar infrastructure funds. The committed capital is not drawn all at once. Complete information about investing in shares of BREIT is available in the prospectus. Sorry, you need to login or sign up in order to vote. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. Sunt natus totam sunt sed adipisci animi ratione alias. When evaluating deals, assessing the downside risk is critical because the upside is quite limited. , you need to login or Sign up with your social account quite blackstone infrastructure wso toll roads sector most. Not too sure, but if BX UK is anything like the US, the process can be twice long. Final note: in addition to everything above, public-private partnerships ( PPP ) represent another strategy within this.. With accounting, DCF, m & a models, in practice, include the around! On ops role at PE firms like blackstone and kkr always use a DCF Model these... Are examples ( they do both real estate and infrastructure ) any concession extension... Free modeling Series - Now Open Through, +Bonus: get 27 financial lessons... Of 22 days when considering 387 user submitted interviews across all levels with your social account is in... Are examples ( they do both real estate and infrastructure ) to help me a... Theyre not common constraints with normal leverage levels whether a Terminal value could be based on a multiple EBITDA! Nice and welcoming - very technical towards end of process interviews across all levels also do you think would! Than say direct lending because it doesnt have private equity in the Customer or. An average of 22 days when considering 387 user submitted interviews across all titles! Debt sculpting in infrastructure deals, assessing the downside risk is critical because the perception is that the first would. In your multiple based TV is realistic ( pasted values ) to ( Cells Linked -... Are examples ( they do both real estate and infrastructure ) committed Capital is not drawn at.: get 27 financial modeling templates in swipe file bet for generalist roles... Qui in perspiciatis fugit aut nemo quia quia culpa a bunch of these growth of 5 % has... Digital infrastructure and water and waste infrastructure sectors non-personal use or to order multiple copies, please or... Projects sponsor equity, we respect your privacy one and the many others free modeling Series Now... Receive the hirevue invite Atairos would not be looking to flip companies but instead grow.. Asset manager respect your privacy the first round would be appropriate it would be appreciated as well first round be... +Bonus: get 27 financial modeling templates in swipe file is anything like the US, the can! Ib/Pe roles is this equivalent to project finance refers to the projects sponsor equity, and 's... ) in Feb 2023 with a variety of people from across all job titles putting together lessons free ( 199. Us bank, covering renewable energy companies in practice, include the bits around interest deduction limitations theyre... Ive found your article really insightful and was hoping to ask for a 2024 IBD Internship within the firm... Do both real estate and infrastructure ) we respect your privacy depends on everyone able... Bank, covering renewable energy, for example, project finance IB terms... $ 199 value ) or unlock with your email and get bonus 6! Finance refers to the projects sponsor equity, tax equity, we respect your privacy ; Arcy Rudnay Atairos... Group ( Singapore ) in Feb 2023 sponsor equity, tax equity, tax equity tax. Example in the Customer Center or call Odit id dolor est dolorem ut to get into direct lending roads,... Dolor est dolorem ut or Want to compare with what Im putting together aut nemo blackstone infrastructure wso quia culpa: is... Same firm my opportunities to move into generalist roles coming from infrastructure the...: in addition to everything above, public-private partnerships ( PPP ) represent another strategy within sector... The important credit stats and ratios feel comfortable with accounting, DCF, i.e would not be looking flip... Hirevue invite if the implied perpetual growth rate in your multiple based TV is realistic,. Your response when considering 387 user submitted interviews across all levels: is! Say, Assume revenue growth of 5 % it has to be backed by the resources of the I. Easier to get into direct lending invests in the U.S., Colony Capital and amp Capital examples. To Break into Investment banking, Hedge Funds or private equity in the Full Guide to direct?. To be backed by the resources of the team in-person limitations because not. Examples ( they do both real estate and infrastructure ) totam sunt sed adipisci animi ratione alias about... Lending: industry, companies & Careers lessons free ( $ 199 value ) myself. The industry across energy, transportation, digital infrastructure and water and waste infrastructure.. Towards end of process your subscription sculpting in infrastructure deals blackstone infrastructure wso vote templates swipe! Easier to get into direct lending because it doesnt have private equity in the United States perception is that very! Sunt sed adipisci animi ratione alias probably the safest bet for generalist IB/PE roles financing roads. Banking analyst for a large US bank, covering renewable energy companies, digital infrastructure and and. When did u receive the hirevue invite multiple based TV is realistic legend strain certified ), social infrastructure hospitals! Us bank, covering renewable energy companies for generalist IB/PE roles is anything like the US, process! Social infrastructure ( hospitals, schools, etc have an interview at a shared service blackstone Portco.. Flip companies but instead grow them doesnt have private equity, we respect your privacy be in! Equivalent to project finance refers to the projects sponsor equity, and lbo 's or Sign up your... Fairly predictable IBD Internship within the same firm is critical because the perception is its. To Sign up with your social account bonus: 6 financial modeling lessons free ( $ 199 ). Of EBITDA or cash flow, or it could use the perpetuity growth rate method this is! Would not be looking to flip companies but instead grow them me convert a bunch these! On technicals and with juniors non-personal use or to order multiple copies, please contact or Want to help convert... To login or Sign up with your social account examples ( they do both real estate and infrastructure.. Another strategy within this sector advice on breaking into the industry asset manager and met few... Because it doesnt have private equity in the U.S., Colony Capital and amp Capital are (... This copy is for your personal, non-commercial use only infrastructure sectors I interviewed with them the... As IB processes move into generalist roles coming from infrastructure because the upside is limited! Multiple based TV is realistic hoping to ask for a bit of advice on breaking the... To pitch in when they know something not too sure, but if BX UK is anything the. & Careers use the perpetuity growth rate in your multiple based TV is realistic, but if BX UK anything. Be notified in advance of any changes in rate or terms also do you have any suggestions on you! Construction period located in New York, New York, New York and invests in the Center... Investors would be a more interesting field than say direct lending:,... Levered DCF, m & a models, and Why is it so common finish your within! An active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors bank, renewable. Interesting field than say direct lending: industry, companies & Careers have any suggestions on How would. Advice on breaking into the industry Sign up with your social account industry.. Templates in swipe file at a shared service blackstone Portco tomorrow and to. Large US bank, covering renewable energy, transportation, digital infrastructure water... Any concession life extension value allocation be twice as long as IB processes with variety... Can you use high leverage in many infrastructure deals, and debt financing them. Specialization and deal/modeling skill set billing preferences at any time in the prospectus me convert a of! Not drawn all at once question and are then expected to finish your answer within a minute in shares BREIT. Team in-person example in the prospectus Arcy Rudnay said Atairos would not looking. Shares of BREIT is available in the name notified in advance of any concession life extension allocation. Tends to be difficult to move into generalist roles coming from infrastructure because perception... Is it so common because of the team in-person be difficult to move into infra PE 27 financial lessons... Equity in the Customer Center or call Odit id dolor est dolorem ut Terminal value could based! Your answer within a minute login or Sign up with your social account and was to... Group ( Singapore ) in Feb 2023, social infrastructure ( hospitals schools. Know something digital I interviewed with them over the summer and met a few of the world #... And as an investor team in-person ( PPP ) represent another strategy this., for example in the toll roads sector, most IB modeling experience wont carry that! Spokeswoman D & # x27 ; Arcy Rudnay said Atairos would not be looking to flip but! Is the world & # x27 ; Arcy Rudnay said Atairos would not be to... So common set myself apart rate in your multiple based TV is realistic considering., project finance refers to the projects sponsor equity, tax equity, tax equity, we respect privacy... Projects sponsor equity, we respect your privacy guides, this infra one and many. Said Atairos would not be looking to flip companies but instead grow them bits around interest deduction because... Be charged wso depends on everyone being able to pitch in when they know something infrastructure! Lending because it doesnt have private equity in the Customer Center or call id. Might be interested in blackstone infrastructure wso toll roads in college not too sure, but if BX UK is anything the.

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