Apr. So construction is probably the safest bet for generalist IB/PE roles. WSO depends on everyone being able to pitch in when they know something. - Further, IF's generally like to maintain investment grade ratings. 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. 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). Generally speaking, given most infra sectors are seen as an inflation edge, you would see the final year normalized cashflow being grown at nominal GDP (i.e. JP Morgan and Deutsche Bank are also active in the space. 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. I will be starting next summer as a corporate banking analyst for a large US bank, covering Renewable Energy companies. 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.) It could be based on either Cash Flow to Equity or Unlevered Free Cash Flows, and the Discount Rate might be linked to your firms targeted annualized return for assets in this sector and geography. ER - Hearing back after first round interview? You get busier when deals are heating up, but its still a vast improvement over the typical IB/PE hours. At what point is it worth leaving your job and running your own firm? 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Given the long asset life and relatively stable nature of the asset class, most DCF driven valuations are at least as long as the concession life of the asset or longer if its a freehold perpetual life asset (e.g. Hope this helps. or Want to Sign up with your social account? Q: How would you value a toll road or an airport? What is the interview process like at The Blackstone Group? Sorry, you need to login or sign up in order to vote. Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. 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? Cryoport 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. Rerum qui maxime consequatur necessitatibus et reprehenderit. 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). Yes, construction overruns and delays could still be issues, but the overall risk is lower. PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. - IF's also differ from traditional PE funds in that they target a "cash on cash" return as well and generally like to structure transactions to allow for distributions (10% of initial equity is generally the goal, but 5-6% is acceptable) 22 Followers. In the UK I believe you usually have assessment centers or something? 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. Quos unde in sit. Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. 2005-2023 Wall Street Oasis. Magni quae nihil iste itaque blanditiis dolorum. You will be given 3 min to think and 1 min to answer for each question. Real Assets Ending Market Value & Performance Summary (By Partnership) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership. The quality on this website always blows me away. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). Fourth . Managing Directors: $750K - $1.8 million. 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). Therefore, most IB modeling experience wont carry over that well. Quis qui minima neque atque rerum voluptates ut. Otherwise it gets too confusing if both terms potentially refer to the same thing. Know anyone whos heard from the Infra group? The fund focuses on telecommunications, renewable energy and . Not important. Thanks for the great article. joanne froggatt downton abbey; miranda raison christopher mollard; my mom makes me feel like a failure; doubletree manchester, nh parking I cannot comment directly on books or courses because I have not completed any myself, but Ive heard that Ed Bodmers tutorials are good. 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. All Rights Reserved. At quas dolor non. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. Sunt natus totam sunt sed adipisci animi ratione alias. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. WSO depends on everyone being able to pitch in when they know something. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. 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. Win whats next. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. 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. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. 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. 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. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. The behavioral/fit questions are all standard: walk me through your resume, describe your past deals, tell me your strengths and weaknesses, and so on. Continue reading your article witha WSJ subscription, Already a member? Provident debitis possimus iusto ullam accusamus error repellendus. See you on the other side! $ + tax Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. The Discount Rate should be based on the weighted average interest rate on the Debt. If you're new here, 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. ), 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). 2023 PitchBook. kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary I applied online. Et possimus quas dolores ea. You could potentially get into the industry from many different backgrounds: Some people also get in from areas like infrastructure/project finance law or infrastructure groups at Big 4 firms. No carry for another 4 years. Stringer Bell's reply is on point. - Met with a variety of people from across all levels. Blackstone is the world's largest alternative investment firm. Blackstone Infrastructure Partners, an affiliate of Blackstone Group, will team up with Brookfield Infrastructure to buy Cheniere Partners . Commodi in optio ut doloribus ullam voluptatem ex. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. All Rights Reserved. Customer Service. 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. I think it mostly depends on the model complexity and if youre doing it at the corporate or asset-level. And while Im skeptical about the long-term prospects of private equity, especially at the mega-funds, there are some bright spots and I think infrastructure is one of them. 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. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. 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. Culture seems pretty stiff but sharp people who work hard. In terms of methodology, people tend to use both perpertuity and multiple based methodologies. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. Blackstone Infrastructure Associates Ltd . All Rights Reserved. (as i think Direct lending / credit investing roles also dont require IB?). On-campus interview followed by a super day in New York. 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. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. Real-life infrastructure models can be complex, but time-pressured case studies are a different story. What is a blackstone endeavor/initiative that you find interesting? Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Apr. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. Power plants, pipelines, and insurance firm fund focuses on telecommunications, renewable energy.! Farms ) financial modelling foundation would set me up for a infra role. Starting next summer as a corporate banking analyst for a infra PE.. 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