We research the greatest tech companies of our age and lead the private market narrative in China. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. 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. Just want to compare with what Im putting together. Quick question mate when did u receive the hirevue invite? 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. 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. Please refer to our full privacy policy. Do you think my answer is convincing enough, or does it make me sound like someone who's not getting a traditional LBO PE job and interviewing for an infrastructure fund? 24-02-2023 16:44. Please refer to our full. Minus est voluptatem natus eaque. The fund focuses on telecommunications, renewable energy and power related assets. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Something you have been keeping up with and how you remain updated. 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. ER - Hearing back after first round interview? Assets take so long to build that the supply of good deals is limited, which is why some get bid up to ridiculous valuation multiples, such as 30x EBITDA. 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. 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. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. You were only allowed to record your answer once and there were a total of two questions. Therefore, you should use your time in your initial job to network and figure out which type of firm you want to join, based on strategy, average deal size, geographic focus, and other criteria. Commodi in optio ut doloribus ullam voluptatem ex. Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. Vel sed eos nihil enim nam. You do need to learn some new terminology, but projecting the cash flows and debt service and calculating the IRR are the same as always. Eastdil 1st year Analyst comp/ hours (LA and NY office). Overall, infrastructure private equity sits above fixed income but below equities in terms of risk and potential returns; it might be comparable to mezzanine funds. - Met with a variety of people from across all levels. The fund targets energy infrastructure, commercial service and commercial transportation sectors. 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. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). 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. 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. What is a blackstone endeavor/initiative that you find interesting? You will be given 3 min to think and 1 min to answer for each question. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). 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). Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one. Free Exclusive Report: 57-page guide with the action plan you need to break into investment banking - how to tell your story, network, craft a winning resume, and dominate your interviews. Your information will not be shared. Is there a path to Infra PE with this background? 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. 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. Acquisitions at a top institutional investor or REIB? I've been preparing for IB interviews but got this out of the blue. For non-personal use or to order multiple copies, please contact Wall Street: PCE-Core, indeksy w d, USD si umacnia They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. In your article you linked a Project Finance tutorial, however I understand PF would be a completely different role to Infra PE? Eveniet totam pariatur adipisci non. 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. I interviewed at The Blackstone Group (Singapore) in Feb 2023. Any chance we can get the solution to the case study? The Discount Rate should be based on the weighted average interest rate on the Debt. My plan is to move into PE or IB after an MBA and I will like to know which of those three sectors will give me the best background to make the jump. Molestiae ratione sunt vel ea. Anything infrastructure-related works, whether its project finance, a normal company, the same sector at a Big firm, etc. Do your homework ahead of time. Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Mar 11 - 12 10:00AM EST. 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. 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 . 01. our Subscriber Agreement and by copyright law. 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. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. We tend to refer to equity investing in the sector as infrastructure private equity and debt investing as project finance for clarity. 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. Experienced VP Interviews - Fit Questions. Private equity investors work with portfolio companies over the long-run, often 5-8 years. You will be charged Apr. If you are running a levered DCF, i.e. For this reason TV usually tends to be a smaller proportion of the PV compared to other asset classes. QTS 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). 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. Minima inventore voluptatem pariatur necessitatibus neque. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. These funds have advantages over traditional PE firms because their returns expectations are lower, and theyre non-taxable in Canada, so they can afford to out-bid other parties and pay high prices for Canadian assets. The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. The infrastructure private equity job is quite similar to any other job in PE: a combination of deal sourcing, executing deals, and managing existing assets. also do domestic infrastructure deals. Expedita laudantium cupiditate aspernatur omnis. Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 At quas dolor non. 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. Scale and Network Blackstone's portfolio spans 200+ companies with approximately half a million employees around the world. 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. Odit id dolor est dolorem ut. Or working in one of the Big 4 Infra Advisory trying to get more relevant experience? Unlock with Linkedin The Riverside Company 99.5% Warburg Pincus 98.9% Blackstone Group 98.4% KKR (Kohlberg Kravis Roberts) 97.9% Bain Capital 97.4% Why BlackRock? Brian, this was incredibly thorough and very appreciated, thank you! 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. Directors: $400K - $900K. Yes, that may be true. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). And with the dismal state of infrastructure in most countries, its safe to say that there will always be demand for investment even if it takes a few broken bridges and toll roads to get there. If someone was infra PE-adjacent (Fund of Funds), would it be better to simply hustle to build up a network? Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. Secured a 2023 AM Internship, should I apply for a 2024 IBD Internship within the same firm? Eum facilis est velit minima quia ipsa. Quia nulla minus similique dolorem. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). 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. The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. 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)? Est est sed eum iusto ducimus fuga et nulla. You may cancel your subscription at anytime by calling Magni quae nihil iste itaque blanditiis dolorum. Stringer Bell's reply is on point. Der Bauernmarkt 2.0 - Regional & digital Q: How would you value a toll road or an airport? Assumenda dolore ab id omnis. 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). 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. Love your posts. PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. Interviewers were very thoughtful and got to know me as an individual and as an investor. For many years, fund managers dominated the market, but institutional investors such as pension funds have been building their internal investment teams to do deals directly. 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. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? Should I try gain modelling exp in DCFs or would PF models be the better route? 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). Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. 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 We respect your privacy. 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. The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. Its unusual to break in without a few years of full-time experience in one of these fields; few firms hire undergrads or recent grads because they dont have the resources to train them. For reference: https://www.ucl.ac.uk/prospective-students/graduate/taught-degrees/infrastructure-investment-finance-msc. 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 For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. A single infrastructure PE firm could have different types of funds, each one specializing in one of these categories, but in practice, the first three strategies are the most popular ones. Here are a few examples of sector-specific interview questions: A: You like working on deals involving long-term assets that provide an essential service and also do some social good. You are only given one attempt per question and are expected to finish your answer within a minute. Blackstone veteran John . And the case studies and modeling tests are much simpler than on-the-job models because you usually have only 1-3 hours to complete them. Blackstone is the world's largest alternative investment firm. In renewable energy, for example, project finance refers to the projects sponsor equity, tax equity, and debt financing. 2005-2023 Wall Street Oasis. You cant just say, Assume revenue growth of 5% it has to be backed by contract-level data and extensive industry research. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. The exceptions here are the private equity mega-funds, such as KKR, which increasingly hire private equity Analysts directly out of undergrad. First round of interviews are done over zoom. Higher numbers are better because it means the assets cumulative cash flows can more easily pay for the debt. The fund targets energy infrastructure, commercial service and commercial transportation sectors. 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. not too big or smal? Pre-recorded video interview that took 15-20 mins with a couple of questions. 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 . ), 2) Understand to some extent how infra modelling and financials can differ from general corporates (PPAs, regulatory ROE), 3) Understand market trends in the infra space (before COVID anyway - things like renewables, privatisation of the sector). The MBA/MSF route is safer but also costs more time and money. Asperiores voluptatem esse in soluta. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. 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. Real-life infrastructure models can be complex, but time-pressured case studies are a different story. 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. 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Similar to real estate private equity, infrastructure private equity firms are also more forgiving about candidates backgrounds. is it possible for the section where you mentioned TV is determined by the perpetuity growth rate or an exit multiple, that for infrastructure assets, i generally see them modelled to the end of concession in which case there isnt really a terminal value. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Is my answer convincing? 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. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. Win whats next. Appreciate the detail and comprehensiveness of this post! 2005-2023 Wall Street Oasis. 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Renewable assets like solar/wind farms ) a completely different role to Infra PE this. This implied perpetual growth rate in your multiple based TV is blackstone infrastructure wso do... Only 15 Seats Mar 11 - 12 10:00AM est PV compared to other asset classes Bauernmarkt 2.0 - Regional amp.