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). See you on the other side! Brian great guide, as always. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. Quick question mate when did u receive the hirevue invite? Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. Your email address will not be published. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Fourth . Blackstone's Portfolio Operations team partners with companies to create purposeful, valuable, growth-oriented businesses. Nulla officia explicabo deleniti dolore. Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. Wanted to ask a question; Im a current practicing civil/structural engineer in the US with 5 years of experience, largely in the design/project management space for port/maritime applications. 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 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. Hedge funds investments can be as short as a few weeks. 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. 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). You can divide infrastructure investors into a few main categories: actual private equity firms (fund managers), large banks, pension funds, sovereign wealth funds, and the investment arms of insurance companies. 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. So construction is probably the safest bet for generalist IB/PE roles. (if applicable) for The Wall Street Journal. 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. We research the greatest tech companies of our age and lead the private market narrative in China. You might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. 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. Eastdil 1st year Analyst comp/ hours (LA and NY office). or Want to Sign up with your social account? I think it mostly depends on the model complexity and if youre doing it at the corporate or asset-level. Final Early Bird Pricing! Q: How would you compare the risk and potential returns of different infrastructure assets? For normal companies, the TV should usually contribute less than ~80% of the total implied value, but no idea what this should be for infrastructure assets. 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. feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? Curious what kind of infra technicals they could ask you. 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. If you are running a levered DCF, i.e. Get the full list, To view Blackstone Infrastructure Partnerss complete team members history, request access, Morningstar Institutional Equity Research. I applied online. " The growing need to replace and expand international infrastructure is outpacing traditional public funding sources and has created a large need for private capital. The fund is located in New York, New York and invests in the United States. or Want to Sign up with your social account? https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. Can a banks prestige override that? First round of interviews are done over zoom. I've been preparing for IB interviews but got this out of the blue. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. 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. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? Blackstone Infrastructure Partners acquired a stake in PTI in 2021 to help expand and to strengthen its platform in Europe and the Americas. London team is growing (they poached two MDs recently). LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? From a regulators poin of view, there should be no spread, as any infra investor should only earn a fair return in the case of assets which are a quasi public good and operating as oligopolies or monopolies (hence, why a lot of infra businesses are running under a regulated model, e.g. In terms of methodology, people tend to use both perpertuity and multiple based methodologies. Required fields are marked *. Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? 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 Sorry, you need to login or sign up in order to vote. 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. Expedita laudantium cupiditate aspernatur omnis. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. (as i think Direct lending / credit investing roles also dont require IB?). Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. 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. Otherwise it gets too confusing if both terms potentially refer to the same thing. Brian, this was incredibly thorough and very appreciated, thank you! or Want to Sign up with your social account? So, all else being equal, theyd prefer someone who knows infrastructure very well to someone with IB experience but in an unrelated group with no exposure to asset-level modeling. Higher numbers are better because it means the assets cumulative cash flows can more easily pay for the debt. Probably talked to half of the team. Alinda Infrastructure Fund II LP This added complexity is something I think I'd enjoy. broward health medical center human resources phone number; steve watson obituary poplar bluff mo; new york state standard deduction 2022; Sign Up. landlort ports in the UK). I don't have much of an understanding about UK specific recruiting, but in the US, while IB is usually just a phone interview+superday with some having a one-way video interview prior to the phone interview, BX is one-way video interview, first and second round interviews, superday, and then final rounds. Quis qui minima neque atque rerum voluptates ut. 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 are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. 2005-2023 Wall Street Oasis. What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. Your information will not be shared. 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 do this by using extraordinary people and flexible capital to help companies solve problems. Apr. 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. Ipsa quia ut optio laboriosam consequatur et eos voluptas. Regarding assets with concession life, I have seen concession life extension assumptions being included in models, but in that case you would need additional assumptions, as you would effectively be capturing the PV of the spread between the concession rights payment (outflow) and the inflows from the later years. What is a blackstone endeavor/initiative that you find interesting? 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. Questions are easy to follow and answer. We respect your privacy. Customer Service. Questions were a mix of technical and fit. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). The most common entry points into infrastructure PE are also the most common exit opportunities: investment banking, project finance, real estate, other areas of PE, infrastructure corporates/developers, and Big 4 infrastructure groups. These are very similar to pension funds: historically, they acted as Limited Partners, but theyve been building their internal teams to invest in infrastructure directly. Is my answer convincing? The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. 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 someone was infra PE-adjacent (Fund of Funds), would it be better to simply hustle to build up a network? Private equity also gives you the ability to work closely with the company over an extended period of time. 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. Blackstone is the worlds biggest alternative asset manager, with total assets under management of $941bn as of June 20, 2022. Thoughts on ops role at PE firms like blackstone and kkr? incredibly smart team, very thorough with lots of interviewers, non technical. $ + tax 2022 Results and Commentary . Nulla sed sequi aut cupiditate veniam eveniet. 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. 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. An investment in BREIT involves risks. - Some interviews were with multiple people. Here's an example of why, at least I think, is a good indication of interest in the space: - Lots of interview rounds. 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 Best Real Estate Models Ever. kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary 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)? If youve already had Big 4 infra advisory experience, Im not sure the degree adds a whole lot because its not like youre an engineering with no other experience making a huge change. Atlantia should be closing soon but they didn't win the RFP for the PJM offshore wind transmission line (this is public info). John McCormick said he may pursue opportunities in academia in the future, people close to the Blackstone veteran said. What additional experience/credentials can I get to set myself apart? Smaller funds that can avoid competition and do bilaterals pay less and can offer better hours but not always as that highly depends on deal flow vs team size and the number of people on the deal team and the level of detail required in the DD, at least in Europe. 11. Thanks! The entire process took about max 15 minutes. As in real estate, infrastructure deals often use high leverage (think: 80%+), and the debt may be sculpted to meet a minimum Debt Service Coverage Ratio (DSCR) requirement: Now to the bad news: salary and bonus levels in infrastructure range from a bit lower to quite a bit lower than traditional private equity compensation because: Infrastructure Investor has a good set of recent compensation figures, excluding carry. 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