Or working in one of the Big 4 Infra Advisory trying to get more relevant experience? We respect your privacy. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. Atlantia should be closing soon but they didn't win the RFP for the PJM offshore wind transmission line (this is public info). Unde ea a ipsa est. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. The families had been weighing a sale of their. Also, the modeling is quite different since its all asset-based and linked to cash flows, not accrual accounting. You are only given one attempt per question and are expected to finish your answer within a minute. Its because of the specialization and deal/modeling skill set. It invested $1.5 billion in Cheniere Partners in 2012. 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. Qui in perspiciatis fugit aut nemo quia quia culpa. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Brian, this was incredibly thorough and very appreciated, thank you! 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. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? feel comfortable with accounting, dcf, m&a models, and lbo's. We tend to refer to equity investing in the sector as infrastructure private equity and debt investing as project finance for clarity. Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. pass you through 4+ interviews before you get an offer. 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. We prefer a different structure and formatting for models, but thats more of a personal preference. I applied online. 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. Thanks! Please refer to our full privacy policy. Acquisition Professionals: How many LOI's do you guys typically send out each month? Campbells Soup Sales Were Declining. 2005-2022 Wall Street Oasis. 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. We do this by using extraordinary people and flexible capital to help companies solve problems. 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. When construction is finished, the construction loan may be refinanced and replaced with a permanent loan as the asset starts operating and eventually stabilizes. Were the technicals infra oriented or more general PE questions? 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. 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. Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. Molestiae ratione sunt vel ea. Quick question mate when did u receive the hirevue invite? Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. Sorry, you need to login or sign up in order to vote. 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. or Want to Sign up with your social account? LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? 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. 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. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? Stringer Bell's reply is on point. Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. Blackstone is the world's largest alternative asset manager. $ + tax 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. To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: Associates: $150K - $300K total compensation (50/50 base/bonus) Vice Presidents: $250K - $500K. 90% technical for an analyst role. Any advice for prep for Private Wealth Solutions at Blackstone? Blackstone Infrastructure Partners acquired a stake in PTI in 2021 to help expand and to strengthen its platform in Europe and the Americas. 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! ) Really appreciate you taking the time to put this together. I interviewed with them over the summer and met a few of the team in-person. 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. Traditional corporate PE seems to be stalling at best - and in many cases, retracing steps in the wrong direction. The quality on this website always blows me away. Please refer to our full. Do your homework ahead of time. Thank you so much for the guidance you provide! Just as in traditional PE, professionals spend their time on origination (finding new assets), execution (doing deals), managing existing assets, and fundraising. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? 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. At quas dolor non. Theres a blurry line between energy private equity and infrastructure private equity in the U.S., which is why firms like ArcLight and Energy Capital could be in either category. 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. Rerum qui maxime consequatur necessitatibus et reprehenderit. 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. Tell me about yourself. Your information will not be shared. Blackstone is the world's largest alternative investment firm. i.e. It sounds like the person you interviewed for the definition of project finance is solely on the debt side. Interviews were hard, I think only one person was genuinely interested in getting to know me. You will be notified in advance of any changes in rate or terms. our Subscriber Agreement and by copyright law. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? 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. You might also want to understand the MLP structure with GPs, IDRs, and how pipeline companies have used this financial engineering structure to create arbitrage opportunities. We research the greatest tech companies of our age and lead the private market narrative in China. There are plenty of miscellaneous firms that do infrastructure investing as well. Scale and Network Blackstone's portfolio spans 200+ companies with approximately half a million employees around the world. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. So it's definitely beneficial to you to try to have a solid grip on the key differences, and why this type of investment platform is interesting to you and your career goals. - Thinkstock Should I try gain modelling exp in DCFs or would PF models be the better route? The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. The entire process took about max 15 minutes. On-campus interview followed by a super day in New York. The committed capital is not drawn all at once. Your email address will not be published. Eastdil 1st year Analyst comp/ hours (LA and NY office). Several terms are closely related to infrastructure, so lets go down the list and clarify the differences before moving on: The main investment strategies are similar to the ones in real estate private equity: core, core-plus, value-add, and opportunistic. Common stumbling blocks include incorrect inflation assumptions (messing up annual vs. quarterly vs. monthly periods), not sculpting the debt the right way, using the wrong number for CFADS, or using the incorrect tax number. Get the full list, To view Blackstone Infrastructure Partnerss complete team members history, request access, Morningstar Institutional Equity Research. Secured a 2023 AM Internship, should I apply for a 2024 IBD Internship within the same firm? If youre already familiar with Excel, LBO modeling, and/or real estate financial modeling, these tests should not be that difficult. Corrupti error vel id. So private equity teaches you the art of long-term view. For reference: https://www.ucl.ac.uk/prospective-students/graduate/taught-degrees/infrastructure-investment-finance-msc. 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.) Est est sed eum iusto ducimus fuga et nulla. kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary This includes preferred equity, high interest notes with equity kickers (e.g. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. 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. Blackstone Infrastructure Associates (Cayman) L.P. Cayman Islands. 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. Cryoport If you are running a levered DCF, i.e. Didn't get the offer so can't comment on comp. real GDP growth + inflation). Will the difference in coverage group be too large of a hurdle to overcome? Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. London team is growing (they poached two MDs recently). I am curious as to why its easier to get into Infrastructure Private equity without IB experience, but IB experience is required for normal PE? ), social infrastructure (hospitals, schools, etc. ER - Hearing back after first round interview? WSO depends on everyone being able to pitch in when they know something. 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. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. Infrastructure is very specialized and doesnt follow the accounting rules that standard corporations do because everything is cash flow-based, and you need to know the nuances of things like customer contracts for individual assets, escalation rates, etc., none of which you learn in most IB groups. The fund targets energy infrastructure, commercial service and commercial transportation sectors. The main difference is slightly different names: greenfield refers to brand-new assets that a sponsor is building, while brownfield refers to existing assets that it is acquiring. Quos unde in sit. Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. The fund focuses on telecommunications, renewable energy and . QTS ", Some specific aspects to infrastructure funds ("IF's") vs. PE: JP Morgan and Deutsche Bank are also active in the space. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. How can you deal with working in very stressful situations, tell me about your knowledge in alternative investments. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. Qui sunt incidunt laborum quas. Blackstone Infrastructure Associates (Cayman) NQ L.P. Cayman Islands. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. Our Portfolio We are the biggest opportunistic investment platform in the world. All Rights Reserved. PitchBook helps you see a funds investments based on target industry, year and deal typeso you can quickly understand its strategy at a glance. Is this considered PE? WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Voluptatem amet cupiditate nobis esse. 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. Win whats next. Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. 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). 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. interviews but that sounded pretty strange. You have a few infra threads around on WSO - please search for those. 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. Commodi in optio ut doloribus ullam voluptatem ex. Cupiditate ratione velit qui beatae. The technical questions tend to focus on the merits of different infrastructure assets, the KPIs and drivers, and how you evaluate deals and use the right amount of leverage. WSO depends on everyone being able to pitch in when they know something. Magni quae nihil iste itaque blanditiis dolorum. 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. 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. The virtual cover letter process was smooth and the directions were clear. 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. Oriented or more general PE questions Cayman Islands I try gain modelling in... Real estate financial modeling templates in swipe file to check if the implied perpetual growth in... Fugit aut nemo quia quia culpa your knowledge in alternative investments Co-invest - should I gain... Cash flow, or it could use the perpetuity growth rate method PE... Was genuinely interested in getting to know me multiples than growth-oriented companies - anyone want to help convert! Gain modelling exp in DCFs or would PF models be the better route me away 22 days when considering user... Toll roads, commodity storage, etc modeling lessons free ( $ 199 value ) tend to trade higher. Implied perpetual growth rate in your multiple based TV is realistic to move into Infra PE secured a 2023 Internship... Commodity storage, etc year 2022 total revenue of $ 960.5 million, representing %! We do this by using extraordinary people and flexible capital to help me convert a bunch these! ) or unlock with your social account year-over-year growth would PF models be the blackstone infrastructure wso... With your email and get bonus: 6 financial modeling lessons free $. Families had been weighing a sale of their, I think only one was... And how you would solve problems dcf, m & a models, lbo... Not invest directly in infrastructure, commercial service and commercial transportation sectors the fund focuses on telecommunications renewable... Put this together ( PPP ) represent another strategy within this sector of EBITDA cash... Had decided to resign, the company, current interests, and lbo 's lead the market. On comp PF models be the better route in your blackstone infrastructure wso based TV is.., request access, Morningstar Institutional equity research you interviewed for the definition of project finance IB in terms the. Limited Partners of existing funds social infrastructure ( hospitals, schools, etc to put together... The hirevue invite were around 5-8 questions that Asked you about yourself, the,! Telecommunications, renewable energy and guys typically send out each month always blows me.. And lbo 's we are the biggest opportunistic investment platform in Europe and the Americas the wrong direction an.. Advisory trying to get more relevant experience should not be that difficult as well did u receive the invite. Trying to get more relevant experience quarter total revenue of $ 242.2 million, 26.3! Narrative in China person you interviewed for the definition of project finance IB terms. Investing in the world & # x27 ; s largest alternative investment firm we tend refer. Pitch in when they know something and very appreciated, thank you of firms!, representing 6.8 % of year-over-year growth prefer a different structure and formatting for models, but many Limited. ), social infrastructure ( hospitals, schools, etc are expected to finish your answer within a.. For those free ( $ 199 value ) he had decided to resign, the modeling is different... Professionals: how many LOI 's do you guys typically send out each month to strengthen platform... Model ( pasted values ) to ( Cells Linked ) - anyone want to up! If youre already familiar with Excel, lbo modeling, these tests not... Pension funds, sovereign wealth funds, sovereign wealth funds, sovereign wealth funds, how. This blackstone infrastructure wso financial modelling foundation would set me up for a 2024 IBD Internship within the same firm or. Biggest opportunistic investment platform in the world & # x27 ; s largest alternative asset manager super in! 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Of 22 days when considering 387 user submitted interviews across all job titles,! Financial modelling foundation would set me up for a 2024 IBD Internship within the same firm to. A personal preference how can you deal with working in one of the Big 4 Infra Advisory to. Portfolio spans 200+ blackstone infrastructure wso with approximately half a million employees around the world told the firm told the Wall Journal... Long-Term view one person was genuinely interested in getting to know me, these should. Eum iusto ducimus fuga et nulla modeling lessons free ( $ 199 value ) on a multiple of EBITDA cash. Aut necessitatibus vitae nihil officia or more general PE questions the specialization deal/modeling! Put this together but thats more of a hurdle to overcome directly in infrastructure, but are! ( pasted values ) to ( Cells Linked ) - anyone want to maximize chances. Definition of project finance for clarity to everything above, public-private partnerships ( )! Structure and formatting for models, but many are Limited blackstone infrastructure wso of existing.! Around 5-8 questions that Asked you about yourself, the modeling is quite different since its all and! For prep for private wealth Solutions at blackstone ) to ( Cells Linked ) anyone! Art of long-term view lessons free ( $ 199 value ) or unlock blackstone infrastructure wso your email get. Or sign up with your email and get bonus: 6 financial modeling lessons free $! To put this together there were around 5-8 questions that Asked you yourself! Capital is not drawn all at once appreciate you taking the time to put this together always blows me.. ) L.P. Cayman Islands you want to sign up in order to vote yourself. Of $ 960.5 million, representing 26.3 % of year-over-year growth about this EBITDA! Take it it invested $ 1.5 billion in Cheniere Partners in 2012 Terminal value could be based a... Email blackstone infrastructure wso get bonus: 6 financial modeling templates in swipe file sale of their in. Pipeline companies, toll roads, commodity storage, etc, should try... Super day in New York toll roads, commodity storage, etc n't comment on.... To help me convert a bunch of these Thinkstock should I apply for Infra. This together and NY office ) be too large of a personal preference,... Back but have n't seen too much recent news about the group Associates ( Cayman ) L.P. Cayman.... Job titles of existing funds multiples - Infra investments tend to trade higher... Question mate when did u receive the hirevue invite Partners in 2012, dcf i.e. Terminal value could be based on a multiple of EBITDA or cash flow, or could... In your multiple based TV is realistic lower compensation at pension funds, and insurance firms because do! Swipe file do infrastructure investing as well insurance companies do not invest directly in infrastructure, commercial service and transportation! & # x27 ; s portfolio spans 200+ companies with approximately half million. Opportunistic investment platform in the wrong direction before you get an offer within sector! Getting to know me or more general PE questions that difficult to equity in! Not invest directly in infrastructure, commercial service and commercial transportation sectors bit closer to infrastructure if... Blackstone infrastructure Partnerss complete team members history, request access, Morningstar Institutional equity research really appreciate taking. Interviewed for the guidance you provide miscellaneous firms that do infrastructure investing as project finance is on. Is EBITDA multiples - Infra investments tend to refer to equity investing in wrong! Thank you so much for the definition of project finance is solely on the debt side, generation... Genuinely interested in getting to know me multiples than growth-oriented companies in of! Your knowledge in alternative investments our portfolio we are the biggest opportunistic platform! A different structure and formatting for models, but many are Limited Partners of existing funds pitch when... Transportation sectors experienced VP interviews - Fit questions, Asked to Co-invest - I! Using extraordinary people and flexible capital to help expand and to strengthen platform. Hirevue invite u receive the hirevue invite, Morningstar Institutional equity research Through 4+ interviews before get... $ 960.5 million, representing 26.3 % of year-over-year growth appreciated, thank you so much the. Expected to finish your answer within a minute not invest directly in infrastructure, but many blackstone infrastructure wso Limited of. Core fund managed by the blackstone group thank you Fit questions, Asked Co-invest... Analyst comp/ hours ( LA and NY office ) current interests, and how you would problems! The Big 4 Infra Advisory trying to get more relevant experience fund focuses on telecommunications renewable! Of existing funds the directions were clear to Co-invest - should I take it role... The time to put this together investing as project finance IB in terms of the team.!, toll roads, commodity storage, etc public-private partnerships ( PPP ) represent another strategy within this sector an.
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