I've been preparing for IB interviews but got this out of the blue. Blackstone Infrastructure Associates L.P. Delaware. 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). All Rights Reserved. joanne froggatt downton abbey; miranda raison christopher mollard; my mom makes me feel like a failure; doubletree manchester, nh parking Q: How would you compare the risk and potential returns of different infrastructure assets? 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. Hi Brian. Eastdil 1st year Analyst comp/ hours (LA and NY office). minority stakes, partnerships / JVs etc and the fund has a mandate to look at opportunities both, in energy and non-energy related fields, which is conducive to creative transaction structures. Blackstone Infrastructure Associates Ltd . 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. Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. Therefore, most IB modeling experience wont carry over that well. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). what should I expect in this interview and any advice? 2005-2023 Wall Street Oasis. This website and our partners set cookies on your computer to improve our site and the ads you see. Founded in 2006, Morgan Stanley Infrastructure Partners ("MSIP") is a global leader in private infrastructure equity investing, targeting assets that provide essential public goods and services primarily located in OECD countries, with the potential for value creation through active asset management. 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. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. 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. Networking and work experience are far more important. Do you have a pulse on how this degree (or similar niche masters) are viewed within the infra PE world? white dog with black eye patch names; southside legend strain certified - IF's typically target businesses with longer-term contracts, which = surety of cash flows. Will the difference in coverage group be too large of a hurdle to overcome? The process took 1 day. Similar to real estate private equity, infrastructure private equity firms are also more forgiving about candidates backgrounds. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. Quia omnis voluptatibus omnis velit assumenda quas harum. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. 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. 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? Your information will not be shared. 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. 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. Der Bauernmarkt 2.0 - Regional & digital 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). Were this questions on RE or "GMAT-style"". I have been told by multiple members of the team during my virtual internship that nearly all the work they do is project financing for new solar and wind farms. Thoughts on ops role at PE firms like blackstone and kkr? Love your posts. - With a longer holding period and a lower return threshold (generally 10-15%), IF's can pay significantly more than a private equity sponsor for certain deals Win whats next. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. You may cancel your subscription at anytime by calling What should I expect? WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Airports have higher risk, higher potential returns, and a greater potential for capital appreciation because they can grow by boosting passenger traffic, adding new landing slots, and charging higher fees. I interviewed at The Blackstone Group (Singapore) in Feb 2023. One thing on the definition of project finance, I am used to hearing a much broader definition that includes the entire capital stack of a separate legal entity (the project), all of which have senior claims over the (multiple) parent owners equity holders or debtors. On-campus interview followed by a super day in New York. 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. 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. All Rights Reserved. 08. 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. Assumenda dolore ab id omnis. At quas dolor non. We seek to create positive economic impact and long-term value for our investors, the . Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? 2005-2023 Wall Street Oasis. Blackstone Infrastructure Associates (Lux) S. r.l. 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. Penultimate-year with summer analyst position secured wanting to do exchange year. Rerum consequuntur similique neque velit quisquam et. Sunt natus totam sunt sed adipisci animi ratione alias. My guess is that the first round would be heavier on technicals and with juniors. Thanks for visiting! The fund is located in New York, New York and invests in the United States. 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. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Project Finance and Infrastructure PE are similar. Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. Cryoport This copy is for your personal, non-commercial use only. Assuming you work at a firm that invests at the asset level rather than companies, you want to learn PF/infrastructure modeling. Ive been looking at the MSc Infra Investment & Finance from University College London as a degree that is directly relevant to my current role, and potentially a good pivot point into infra PE. I interviewed with them over the summer and met a few of the team in-person. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Something you have been keeping up with and how you remain updated. also do domestic infrastructure deals. Thank you so much for the guidance you provide! The fund focuses on telecommunications, renewable energy and . The MBA/MSF route is safer but also costs more time and money. 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. Its hard to compare to direct lending because it depends on what youre looking for. Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? At the end of the holding period, you assume an exit based on a percentage of the assets initial value or a multiple of EBITDA or cash flow. You are only given one attempt per question and are expected to finish your answer within a minute. 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. Although the role is more so as a developer (conducting market research, competition analysis, coordinating bids) there is some opportunity to support the project finance team as well. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? 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? When evaluating deals, assessing the downside risk is critical because the upside is quite limited. Do you feel this is a good opportunity in general to gain industry experience, rather than perhaps in an infra advisory big 4 capacity? 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. The biggest infrastructure investing firm worldwide is Macquarie Infrastructure and Real Assets (MIRA), which is a branch of the Australian bank Macquarie. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. 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. Provident debitis possimus iusto ullam accusamus error repellendus. Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. Summing up everything above, heres how you can think about the industry: Overall, infrastructure private equity is a great career option, but its a bit less of a side door or back door than real estate private equity because you do need some relevant deal experience first. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. The Best Real Estate Models Ever. https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. 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. 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. Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. If youre already familiar with Excel, LBO modeling, and/or real estate financial modeling, these tests should not be that difficult.
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