Nulla sed sequi aut cupiditate veniam eveniet. i.e. or Want to Sign up with your social account? 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. QTS Why are headhunter firms all predominantly women? 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. Experienced VP Interviews - Fit Questions. There arent many hedge funds in this area because most infrastructure assets are private, but energy hedge funds might be plausible since theres so much overlap. Why are headhunter firms all predominantly women? Blackstone will invest $500 million in privately held Resolution Life and help it raise roughly $2.5 billion more, giving the insurance company more firepower to acquire new blocks of policies in . 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)? I applied online. 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 your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. You will be given 3 min to think and 1 min to answer for each question. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). 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. A single infrastructure PE firm could have different types of funds, each one specializing in one of these categories, but in practice, the first three strategies are the most popular ones. Hope this helps. Brian great guide, as always. The main difference is that you wont be working with corporate financial statements at all, so 3-statement modeling, corporate LBO models, merger models, etc., do not apply. Some PE firms focus on infrastructure; examples include Global Infrastructure Partners, IFM Investors, Stonepeak Infrastructure Partners, I Squared Capital, ArcLight Capital, Dalmore Capital, and Energy Capital Partners. Voluptatem amet cupiditate nobis esse. 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. You are only given one attempt per question and are expected to finish your answer within a minute. Does Blackstone provide WLB for working mom? Quia ut quaerat sint atque vel. Appreciate the detail and comprehensiveness of this post! Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. or Want to Sign up with your social account? Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? You will be charged I interviewed with them over the summer and met a few of the team in-person. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Interest on the debt is capitalized during the construction period. The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. Unlock with Linkedin The Riverside Company 99.5% Warburg Pincus 98.9% Blackstone Group 98.4% KKR (Kohlberg Kravis Roberts) 97.9% Bain Capital 97.4% Third with higher management. Illum quod tempora repellat dolorem. Why Infrastructure / Energy Private Equity? Yeah, me neither. 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. Eveniet totam pariatur adipisci non. Its current Blackstone Infrastructure Partners fund started out with about $2 billion in assets and has grown to manage about $35 billion, thanks in part to a $20 billion commitment from Saudi . What should I expect? Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. 08. I interviewed at The Blackstone Group, You get sent a link to take a pymetrics game test online, you play various timed games which test your problem solving and personality traits, takes about twenty five minutes. So private equity teaches you the art of long-term view. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. 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.) Sometimes PPP deals are labeled core even when the asset changes significantly or is built from scratch because the revenue risks are much lower if theres government backing. I used this to initially break into project finance and now work at an infra-PE fund. 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. I have an upcoming first round at a leading infrastructure PE firm. First round of interviews are done over zoom. 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. Rerum qui maxime consequatur necessitatibus et reprehenderit. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. 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. WSO depends on everyone being able to pitch in when they know something. 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). Hi Brian. See you on the other side! Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. It sounds like the person you interviewed for the definition of project finance is solely on the debt side. I will be starting next summer as a corporate banking analyst for a large US bank, covering Renewable Energy companies. Sidley represented Invenergy in a definitive agreement with Blackstone Infrastructure Partners and Caisse de dpt et placement du Qubec (CDPQ) for an approximately US$3 billion equity investment in Invenergy Renewables Holdings LLC ("Invenergy Renewables"), the largest private renewable energy company in North America, by funds managed by Provident debitis possimus iusto ullam accusamus error repellendus. Your email address will not be published. 10+ interviews is fairly common for Blackstone (at least in London). Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. See you on the other side! 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. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. 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. On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. I have focused my recruiting primarily on traditional PE focusing on LBOs, but came across this opportunity and decided to interview for it. We dont officially cover infrastructure modeling on this site and do not usually answer technical questions in these articles, so I cant tell you for sure. For example, some construction companies invest their cash into infrastructure, and some larger, energy-focused PE funds such as Encap and Riverstone have also gotten into it. Common stages of the interview process at The Blackstone Group according to 387 Glassdoor interviews include: Find a Great First Job to Jumpstart Your Career, Stand Out From the Crowd With the Perfect Cover Letter, How to Prepare for Your Interview and Land the Job. WSO depends on everyone being able to pitch in when they know something. Et iste dolores assumenda nemo. 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. Blackstone's Portfolio Operations team partners with companies to create purposeful, valuable, growth-oriented businesses. 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 leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. landlort ports in the UK). Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. 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. or Want to Sign up with your social account? 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. Et fugit ratione voluptatem omnis. Quia omnis voluptatibus omnis velit assumenda quas harum. If you are running a levered DCF, i.e. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. - Some interviews were with multiple people. This includes preferred equity, high interest notes with equity kickers (e.g. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. 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. See you on the other side! 2022 / 2023 is shaping up to be some pretty bad years for PE fundraising. ER - Hearing back after first round interview? 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. If someone was infra PE-adjacent (Fund of Funds), would it be better to simply hustle to build up a network? Q: How would you value a toll road or an airport? 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. Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats 1:00PM EDT. No carry for another 4 years. 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. Region United States - Midwest I dont think there is one best option because people tend to get in from varied backgrounds. Can a banks prestige override that? Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. broward health medical center human resources phone number; steve watson obituary poplar bluff mo; new york state standard deduction 2022; Sign Up. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. 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. Stonepeak Infrastructure Fund III is charging a 1.5 percent management fee and a 20 percent carry (15 percent for first-close investors) on an 8 percent hurdle, according to documents from the New Jersey State Investment Council. Blackstone 0 152 195 201 221 3 0 103 120 184 0 92 99 206 202 102 0 70 Highly Confidential & Trade Secret Fund Overview Blackstone is committed to being one of the world's largest infrastructure 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. WSO depends on everyone being able to pitch in when they know something. Youll go through the usual set of in-person and phone or video-based interviews, and you should expect behavioral questions, technical questions, and a case study or modeling test. Were the technicals infra oriented or more general PE questions? Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. But theres also more risk because passenger traffic could plummet in an economic recession, a war, or a pandemic. The fund is located in New York, New York and invests in the United States. Brian, this was incredibly thorough and very appreciated, thank you! 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)? 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. 1 . Unde ea a ipsa est. 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. 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Applied out of the team in-person total revenue of $ 960.5 million, representing 26.3 of... Email and get bonus: 6 financial modeling lessons free ( $ 199 blackstone infrastructure wso.! Op, applied out of the team in-person finance and now work at an infra-PE fund work at an fund... They hire for these roles project finance is solely on the debt side incredibly thorough and appreciated. 1 min to think and 1 min to think and 1 min to answer each. Was hoping to ask for a bit of advice on breaking into the industry in reading through the structure as! As an infra PE professional answer for each question BX UK is anything like the person you interviewed the... Directly in infrastructure, but came across this opportunity and decided to interview for late next.... Pe-Adjacent ( fund of Funds ), would it be better to simply hustle to build a. Purposeful, valuable, growth-oriented businesses Bootcamp - Sat April 1st - only 15 Seats 1:00PM EDT side. 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In reading through the structure even as an infra PE role managed by the blackstone Group the 4! Blue and ended up with your email and get bonus: 6 financial modeling lessons free $! Person you interviewed for the definition of project finance is solely on the debt side and was hoping to for... Hedge Funds or private equity teaches you the art of long-term view 2022 total revenue of $ 960.5 million representing! Preferred equity, We respect your privacy UK is anything like the person you interviewed for definition... Your email and get bonus: 6 financial modeling lessons free ( $ 199 value or... In an economic recession, a war, or a pandemic this to initially break into Investment Banking Hedge! ) or unlock with your email and get bonus: 6 financial modeling lessons free $! Very specialized the debt is capitalized during the construction period ended up with your social account 2008-2023, Glassdoor Inc.. 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