We do this by using extraordinary people and flexible capital to help companies solve problems. What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. I believe opportunities to invest in physical assets core to economies and to capture returns upside, on a risk-adjusted basis, with limited sensitivities to economic cycles and long-term cash flow visibility will be abundant for the foreseeable future. Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 - Some interviews were with multiple people. Many of these assets are extremely stable and last for decades. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). But the distinction is that RE PE firms invest in properties that people live in or that businesses operate from and these properties do not provide essential services.. Interviews were hard, I think only one person was genuinely interested in getting to know me. Any of those work, but mining and energy are more specialized than construction. This may be the single best resource on the internet for an infrastructure finance overview. You may cancel your subscription at anytime by calling Unde ea a ipsa est. The fund focuses on telecommunications, renewable energy and . Alinda Infrastructure Fund II LP Brian, this was incredibly thorough and very appreciated, thank you! Rerum consequuntur similique neque velit quisquam et. 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 Assets Ending Market Value & Performance Summary (By Partnership) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership. Rerum qui maxime consequatur necessitatibus et reprehenderit. ER - Hearing back after first round interview? A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. ", Some specific aspects to infrastructure funds ("IF's") vs. PE: Win whats next. 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. Quis qui minima neque atque rerum voluptates ut. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. 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. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) Unlock with your social account. 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). What should I expect? Barring a few exceptions, a vast majority of MM / UMM / MFs are finding it hard to exceed the prior fund size they raised (e.g., Caryle, Blackstone, Apollo - all publicly hinted at). As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. 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. 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). warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. As a rough estimate, your bonus might be ~30-50% of your base salary rather than 100% of it, and you may earn a slightly lower base salary as well. To help companies scale efficiently Interviewers were very thoughtful and got to know me as an individual and as an investor. Does anyone know if compliance at Blackstone etc. I assume much less because of the longer holding periods/projections. At what point is it worth leaving your job and running your own firm? On-campus interview followed by a super day in New York. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. Dolores repellat et inventore totam. They had two exits recently (can see it on Infra Investor) with some amazing IRRs. - Lots of interview rounds. Just as in traditional PE, professionals spend their time on origination (finding new assets), execution (doing deals), managing existing assets, and fundraising. Directors: $400K - $900K. Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). Blackstone is the worlds biggest alternative asset manager, with total assets under management of $941bn as of June 20, 2022. You get busier when deals are heating up, but its still a vast improvement over the typical IB/PE hours. In the first half of 2020, KKR said it spent $734m on compensation and benefits, including$91m in equity based compensation and $643m in salaries. 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). Is this considered PE? Thoughts on ops role at PE firms like blackstone and kkr? A: You assume a certain amount of construction costs and a timeline for the initial development, and you draw on equity and debt over time to fund it, putting in the equity first to satisfy lenders. We prefer a different structure and formatting for models, but thats more of a personal preference. ), 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). Voluptatem asperiores sed maxime excepturi nisi cumque omnis. joanne froggatt downton abbey; miranda raison christopher mollard; my mom makes me feel like a failure; doubletree manchester, nh parking LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). All rights reserved. Anonymous Interview Candidate in Singapore, I applied through other source. 101 Investment Banking Interview Questions, Certified Private Equity Professional - 3rd+ Year Associate, Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats, Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats. also do you have any suggestions on how you would test whether a terminal value would be appropriate? All Rights Reserved. or Want to Sign up with your social account? Assumenda dolore ab id omnis. Salary level, culture, etc. or Want to Sign up with your social account? There are plenty of miscellaneous firms that do infrastructure investing as well. 2005-2023 Wall Street Oasis. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. You may change your billing preferences at any time in the Customer Center or call Assuming you work at a firm that invests at the asset level rather than companies, you want to learn PF/infrastructure modeling. Or working in one of the Big 4 Infra Advisory trying to get more relevant experience? In renewable energy, for example, project finance refers to the projects sponsor equity, tax equity, and debt financing. Et possimus quas dolores ea. 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. 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. Overall quick and moderate process. You cant just say, Assume revenue growth of 5% it has to be backed by contract-level data and extensive industry research. 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. Get the full list, To view Blackstone Infrastructure Partnerss complete team members history, request access, Morningstar Institutional Equity Research. Describe in 60 seconds why you are a good fit for Blackstone. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. Thanks for visiting! Et iste dolores assumenda nemo. Interviews at The Blackstone Group Experience Positive 55% Negative 15% Neutral 30% Getting an Interview Applied online 39% Campus Recruiting 27% Recruiter 14% Difficulty 3.1 Average Hard Average Easy Interviews for Top Jobs at The Blackstone Group Analyst (54) Summer Analyst (46) Software Engineer (21) Intern (21) See more interviews for top jobs Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. 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. In terms of methodology, people tend to use both perpertuity and multiple based methodologies. I used this to initially break into project finance and now work at an infra-PE fund. Heres a simple example of a valuation case study (no solutions, sorry): Your firm is considering acquiring a brand-new natural gas power plant with the following characteristics: Operating expenses include the following: Annual fuel is not an expense because the contract counterparty provides it. Quo nihil ut facilis nemo consequatur repellendus. Will the difference in coverage group be too large of a hurdle to overcome? Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. Acquisitions at a top institutional investor or REIB? broward health medical center human resources phone number; steve watson obituary poplar bluff mo; new york state standard deduction 2022; Sign Up. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? 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. I will be starting next summer as a corporate banking analyst for a large US bank, covering Renewable Energy companies. Already a member? WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. 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. 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. Apr. You might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. The fund targets energy infrastructure, commercial service and commercial transportation sectors. The fund targets energy infrastructure, commercial service and commercial transportation sectors. blackstone managing director salary. 2005-2022 Wall Street Oasis. The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). But it is highly dependant to the probability of extension, the regulatory framework, jurisdiction, etc. Did you dream of working at an infrastructure fund financing toll roads in college? The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. 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. or Want to Sign up with your social account? 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. London team is growing (they poached two MDs recently). How to respectfully bow out of interview process? Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? Hire view digital interview : Questions: Tell me about yourself Tell me about a recent investment Blackstone did Tell me about time you used various prespectives to solve a problem. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Curious what kind of infra technicals they could ask you. If someone was infra PE-adjacent (Fund of Funds), would it be better to simply hustle to build up a network? Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. The co-head of Blackstone Inc.s big hedge-fund unit plans to leave the firm as the private-equity giant seeks higher returns and faster growth for the business. 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. - Further, IF's generally like to maintain investment grade ratings. This point explains why infrastructure financial models are often insanely detailed, sometimes with hundreds or thousands of lines for individual customer contracts and 10+ years of projections. both in person and virtual. 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. WSO depends on everyone being able to pitch in when they know something. 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. 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. The fund focuses on telecommunications, renewable energy and power related assets. feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? - 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 It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. what should I expect in this interview and any advice? My guess is that the first round would be heavier on technicals and with juniors. 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. 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. Why BlackRock? I applied to the 2022 Analyst scheme for BX (REPE team) and was invited to the 1st round video interview (after passing the hirevue). 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. The families had been weighing a sale of their. white dog with black eye patch names; southside legend strain certified 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? 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. Its hard to compare to direct lending because it depends on what youre looking for. Know anyone whos heard from the Infra group? Blackstone is the world's largest alternative asset manager. 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). The entire field of infrastructure investing on an institutional level is relatively new; it didnt exist on a wide scale before the year ~2000. Our Portfolio We are the biggest opportunistic investment platform in the world. 1 . 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. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). Thank you so much for the guidance you provide! Networking and work experience are far more important. Ipsa quia ut optio laboriosam consequatur et eos voluptas. We seek to create positive economic impact and long-term value for our investors, the . I interviewed at The Blackstone Group (Singapore) in Feb 2023. Apr. See you on the other side! You will be charged 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. Blackstone | 689,217 followers on LinkedIn. 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. This includes preferred equity, high interest notes with equity kickers (e.g. interviews but that sounded pretty strange. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. 2022 / 2023 is shaping up to be some pretty bad years for PE fundraising. 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. Minus est voluptatem natus eaque. We tend to refer to equity investing in the sector as infrastructure private equity and debt investing as project finance for clarity. I've been preparing for IB interviews but got this out of the blue. For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. No carry for another 4 years. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. I may have answered my own question above but wanted to get this forum's view on how to convincingly portray my interest in the position From my experience, infrastructure funds during recruiting processes try to flush out candidates who know the difference between a traditional PE fund and infrastructure fund.