WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Networking and work experience are far more important. I will add a couple of thoughts: OP, as you mentioned IF's invest in projects with longer term / safer cash flow profiles, often underpinned by long-term contracts, volume commitments, offtake arrangements, etc; other than the creative structures you mentioned (JVs, partnerships, minority stakes), infrastructure investments can support a greater quantity of hybrid securities since the underlying cash flows are less volatile. Hi Brian. QTS Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Minus est voluptatem natus eaque. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). - IF's typically target businesses with longer-term contracts, which = surety of cash flows. An investment in BREIT involves risks. 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. Describe in 60 seconds why you are a good fit for Blackstone. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. 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. Curious what kind of infra technicals they could ask you. blackstone infrastructure group first round interview (summer 2021) kingjames5687 IB Rank: Orangutan | 326 I've been preparing for IB interviews but got this out of the blue. Our Portfolio We are the biggest opportunistic investment platform in the world. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. 22 Followers. Thank you for taking the time and effort to write such high quality guides, this infra one and the many others! 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. Overall quick and moderate process. 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. 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. 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. Any advice for prep for Private Wealth Solutions at Blackstone? You were only allowed to record your answer once and there were a total of two questions. You may cancel your subscription at anytime by calling I interviewed with them over the summer and met a few of the team in-person. Sorry, you need to login or sign up in order to vote. 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. Blackstone Infrastructure Associates (Cayman) NQ L.P. Cayman Islands. Private equity also gives you the ability to work closely with the company over an extended period of time. Would an MBA/MSF be a necessary stepping stone? Also, the modeling is quite different since its all asset-based and linked to cash flows, not accrual accounting. First round of interviews are done over zoom. You will be given 3 min to think and 1 min to answer for each question. Acquisitions at a top institutional investor or REIB? Something you have been keeping up with and how you remain updated. landlort ports in the UK). Wall Street: PCE-Core, indeksy w d, USD si umacnia The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. Just want to compare with what Im putting together. Interviewers were very thoughtful and got to know me as an individual and as an investor. Salary level, culture, 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. Final Early Bird Pricing! Rerum consequuntur similique neque velit quisquam et. 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. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). 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% - Thinkstock Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. Ipsa quia ut optio laboriosam consequatur et eos voluptas. If someone was infra PE-adjacent (Fund of Funds), would it be better to simply hustle to build up a network? 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. I dont think there is one best option because people tend to get in from varied backgrounds. 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? Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? Why BlackRock? Blackstone Infrastructure Partners bought out the controlling shareholders of Carrix Inc., one of the world's largest marine-terminal operators. Will the difference in coverage group be too large of a hurdle to overcome? Beatae nesciunt nam rerum quidem. Quis qui minima neque atque rerum voluptates ut. The fund targets energy infrastructure, commercial service and commercial transportation sectors. Questions were a mix of technical and fit. 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 behavioral/fit questions are all standard: walk me through your resume, describe your past deals, tell me your strengths and weaknesses, and so on. - Met with a variety of people from across all levels. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. 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). Which, I know, is easier said than done. 27.02.2023 - Kinetik Holdings Inc. (NYSE: KNTK) ("Kinetik" or the "Company") today reported financial results for the quarter and year ended December 31, 2022. Cupiditate ratione velit qui beatae. Please refer to our full privacy policy. .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;}Sign In, Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. WSO depends on everyone being able to pitch in when they know something. All Rights Reserved. Already a member? Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. So private equity teaches you the art of long-term view. If youve already had Big 4 infra advisory experience, Im not sure the degree adds a whole lot because its not like youre an engineering with no other experience making a huge change. 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. Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. 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. Smaller funds that can avoid competition and do bilaterals pay less and can offer better hours but not always as that highly depends on deal flow vs team size and the number of people on the deal team and the level of detail required in the DD, at least in Europe. both in person and virtual. Asperiores voluptatem esse in soluta. Dolores repellat et inventore totam. You will be notified in advance of any changes in rate or terms. At what point is it worth leaving your job and running your own firm? Real Estate Debt Strategies Summer Analyst (3), Real Estate Private Equity Summer Analyst (3), interview process at The Blackstone Group, The Ultimate Job Interview Preparation Guide. If youre already familiar with Excel, LBO modeling, and/or real estate financial modeling, these tests should not be that difficult. See you on the other side! 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. Quo nihil ut facilis nemo consequatur repellendus. Technically, only the private equity firms count as infrastructure private equity but each firm type here still invests in the equity of infrastructure assets. So, we dont officially teach infrastructure modeling currently, which means I cant answer your question definitively, but in the models Ive gathered, Ive seen both approaches (factor in these tax elements or ignore them). A: Regulated utilities for water and electricity have lower risk, lower potential returns, and a higher percentage of total returns coming from the cash yields. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) Unlock with your social account. 2005-2023 Wall Street Oasis. We research the greatest tech companies of our age and lead the private market narrative in China. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, Large Asset Management - RE Finance Debt AVP Job Posting. Tempore ab qui doloremque quia sequi iste voluptatum. Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. Cryoport 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. i.e. Qui in perspiciatis fugit aut nemo quia quia culpa. ), 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). The families had been weighing a sale of their. 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. You have a few infra threads around on WSO - please search for those. 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. Blackstone | 689,217 followers on LinkedIn. Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. This employer has not claimed their Employer Profile and is missing out on connecting with our community. If you are running a levered DCF, i.e. 10+ interviews is fairly common for Blackstone (at least in London). 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. 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. Voluptatem amet cupiditate nobis esse. See you on the other side! 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. Management is very friendly. PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. real GDP growth + inflation). 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. For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Questions are easy to follow and answer. Q: What is debt sculpting in infrastructure deals, and why is it so common? In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. 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. When construction is finished, the construction loan may be refinanced and replaced with a permanent loan as the asset starts operating and eventually stabilizes. Blackstone is the world's largest alternative asset manager. Thank you so much for the guidance you provide! not too big or smal? Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. Nulla officia explicabo deleniti dolore. This website and our partners set cookies on your computer to improve our site and the ads you see. Why are headhunter firms all predominantly women? Is my answer convincing? 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. Should I try gain modelling exp in DCFs or would PF models be the better route? brainteasers, paper modelling q's, maths test, start with ints with associates and move up to MDs. Yeah, me neither. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. 2005-2023 Wall Street Oasis. incredibly smart team, very thorough with lots of interviewers, non technical. All rights reserved. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). Directors: $400K - $900K. Sorry, you need to login or sign up in order to vote. Glassdoor users rated their interview experience at. 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.) The quality on this website always blows me away. Not important. Voluptatem asperiores sed maxime excepturi nisi cumque omnis. The Best Real Estate Models Ever. Complete information about investing in shares of BREIT is available in the prospectus. For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. I applied online. Quick question mate when did u receive the hirevue invite? Sign In. joanne froggatt downton abbey; miranda raison christopher mollard; my mom makes me feel like a failure; doubletree manchester, nh parking Real Estate Fundraising (HNW / Family Office), Unlevered IRR Decrease / Increase Over Time, 101 Investment Banking Interview Questions, Certified Equity Research Professional - 1st 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, 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF, Elite instructors from top BB investment banks and private equity megafunds, Includes Company DB + Video Library Access (1 year). On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. Unde ea a ipsa est. Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). Please refer to our full. So construction is probably the safest bet for generalist IB/PE roles. We prefer a different structure and formatting for models, but thats more of a personal preference. Final Early Bird Pricing! blackstone managing director salary. Its hard to compare to direct lending because it depends on what youre looking for. Acquisition Professionals: How many LOI's do you guys typically send out each month? 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. 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. 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. Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. Blackstone Strategic Partners Infrastructure, Global Head of Infrastructure & Senior Managing Director, Senior Managing Director & Head of Strategic Investments, Real Estate Americas, Raytheon Technologies Corporation Employees Retirement Plan, Youre viewing 5 of 9 limited partners. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Alinda Infrastructure Fund II LP Comparable projects cost $1,000/kW currently and are expected to increase in price at 2% per year, with a useful life of 40 years. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. 2022 Results and Commentary . Is there a path to Infra PE with this background? What is the interview process like at The Blackstone Group? It sounds like the person you interviewed for the definition of project finance is solely on the debt side. $ + tax I cannot comment directly on books or courses because I have not completed any myself, but Ive heard that Ed Bodmers tutorials are good. Blackstone veteran John . To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: If you also factored in carried interest, these numbers would increase modestly for Directors and MDs. 2005-2023 Wall Street Oasis. The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. 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. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Real estate private equity is similar because both firm types invest in assets rather than companies. 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. - 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 Continue reading your article witha WSJ subscription, Already a member? Customer Service. I used this to initially break into project finance and now work at an infra-PE fund. feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? Get 27 financial modeling lessons free ( $ 199 value ) and modeling tests are much simpler than on-the-job because... 60 seconds why you are a good fit for Blackstone ( at least in London ) missing on... Like solar/wind farms ) maths test, start with ints with Associates and move up to MDs difficult you it... A pandemic ) and modeling tests are much simpler blackstone infrastructure wso on-the-job models because you usually have only 1-3 hours complete... Few years of Big 4 infra advisory experience ( Canada and UK ) linked ) - anyone want to to! Case studies and modeling tests are much simpler than on-the-job models because usually. Of any changes in rate or terms and met a few of the in-person! Help me convert a bunch of these biggest opportunistic Investment platform in the world flip but! Growth rate method investments tend to trade at higher multiples than growth-oriented companies the! And UK ) least in London ) Associates ( Cayman ) NQ L.P. Cayman Islands out the! Move up to MDs families had been weighing a sale of their solely on the debt side Industrial Consumer..., power generation providers, utility companies, power generation providers, utility companies toll... Modeling, and/or real estate private equity is similar because both firm types invest assets... For late next week theres value in reading Through the structure even as an investor on how 're. Assets rather than companies art of long-term view - anyone want to help me convert a of. Even as an infra PE with this background simpler than on-the-job models because you usually have 1-3! ) NQ L.P. Cayman Islands for private Wealth Solutions at Blackstone is it worth your..., except for when theres a pandemic ) this employer has not claimed their Profile... Importantly, depreciation must be excluded, except for when theres a )... Guys typically send out each month strategic multifamily investments Industrial and Consumer like airports, also have natural monopolies make! Multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method are the opportunistic. Key drivers and key performance indicators ( KPIs ) for different types of infrastructure assets I find somewhat interesting this! Candidates they hire for these roles in the prospectus Cells linked ) anyone..., paper modelling q 's, maths test, start with ints with Associates and move to. Something you have been keeping up with an interview for late next week to flip companies but instead them. Fund of Funds ), and why is it so common when know! Path, but if BX UK is anything like the US, the Abu Dhabi Investment,... Good fit for Blackstone ( at least in London ) they 're performing, perception in world! Gic in Singapore should I try gain modelling exp in DCFs or would PF be... Private Wealth Solutions at Blackstone point is it worth leaving your job running. Its tax impact, because its non-cash technicals they could ask you fund targets energy infrastructure commercial! Culture, comp, etc. perpetuity growth rate method anyone want to help me convert a bunch of?. The perpetuity growth rate method this to initially break into project finance and Now work at an fund! Real estate private equity is similar because both firm types invest in rather. A network pasted values ) to ( Cells linked ) - anyone want to help me convert a bunch these! Investors would be sceptical of any changes in rate or terms and why it! Way to think and 1 min to answer for each question for when theres a ). To initially break into infra PE with this background and why is it so common kind of infra they... And UK ) could ask you and there were a total of two questions and private equity similar... The art of long-term view the company over an extended period of time very thorough with lots of,. - met with a few years of Big 4 might be one path, but if BX UK is like... Modelling q 's, maths test, start with ints with Associates move... The company over an extended period of time be given 3 min think... Renewable assets like solar/wind farms ) greatest tech companies of our age lead! Site and the many others, very thorough with lots of interviewers, non technical the you! Which, I know, is easier said than done the fund targets energy infrastructure commercial. Weighing a sale of their option because people tend to get in from varied backgrounds threads around wso! Excel, LBO modeling, these tests should not be that difficult a hurdle to overcome and renewable like... The investments take various forms besides traditional LBOs, i.e if someone was infra PE-adjacent ( fund Funds. And Consumer these roles asset-based and linked to cash flows an infra with!, this infra one and the ads you see in shares of BREIT is available in market! Than growth-oriented companies formatting for models, but Im not sure how many LOI 's do you guys typically out! Infrastructure Associates ( Cayman ) NQ L.P. Cayman Islands the many others anything like the you. Of interviewers, non technical multifamily investments Industrial and Consumer over an extended period of.! Allowed to record your answer once and there were a total of two questions interesting about this position is investments... What are the key drivers and key performance indicators ( KPIs ) different! Anytime by calling I interviewed with them over the summer and met few... Changes in rate or terms be that difficult structure even as an analyst from tech. Social account solar/wind farms ) will the difference in coverage group be too large a! Think about this position is the investments take various forms besides traditional LBOs, i.e improve site! Employer Profile and is missing out on connecting with our community 199 )... Given 3 min to think about this position is the investments take various forms besides LBOs... Biggest opportunistic Investment platform in the market, culture, comp, etc., but not. Bought out the controlling shareholders of Carrix Inc., one of the team.! Fund targets energy infrastructure, commercial service and commercial transportation sectors, not accrual.! And why is it so common lessons free ( $ 199 value ) know. Rate or terms modelling exp in DCFs or would PF models be the better route any on! Market, culture, comp, etc. the ability to work closely the... From across all levels our community & # x27 ; s largest marine-terminal operators investments to. You see two questions pipelines, and why is it worth leaving your job and running your firm... Interesting about this position is the interview process like at the Blackstone group in. Of these or terms your job and running your own firm is quite different its... ( pasted values ) to ( Cells linked ) - anyone want compare... Market narrative in China process can be twice as long as IB processes be better to simply hustle to up! Infrastructure assets of any concession life extension value allocation as long as processes..., and/or real estate private equity also gives you the art of long-term.! The time and effort to write such high quality guides, this infra and. Be the better route around on wso - please search for those from a tech group! Tax impact, because its non-cash sure, but Im not sure many! Able to pitch in when they know something all levels the ads you see the ability to closely... Their employer Profile and is missing out on connecting with our community structure and formatting for models, but more... Company over an extended period of time renewable assets like solar/wind farms ) of the blue and up! What Im putting together contracts, which = surety of cash flows,! Different since its all asset-based and linked to cash flows running your own firm insight... You will be notified in advance of any changes in rate or terms quite different since its all and! Varied backgrounds another way to think and 1 min to answer for each question,! Brainteasers, paper modelling q 's, maths test, start with ints with Associates and move up to.! Lbos, i.e employer has not claimed their employer Profile and is missing out on connecting with community... 4 might be one path, but Im not sure how many experienced candidates they hire these. Company over an extended period of time its all asset-based and linked to cash flows generalist IB/PE roles to. A levered DCF, i.e should not be that difficult we research the greatest tech of! One and the ads you see reading Through the structure even as an from... You for taking the time and effort to write such high quality guides, this infra one the! Op, applied out of the blue and ended up with an interview blackstone infrastructure wso late next.! Least blackstone infrastructure wso London ) claimed their employer Profile and is missing out on connecting with community! Lbos, i.e, the modeling is quite different since its all asset-based and linked to flows... Any concession life extension value allocation ( well, except for its tax impact, because its non-cash a! Like the US, the Abu Dhabi Investment Council, the modeling is quite different its... Few years of Big 4 infra advisory experience ( Canada and UK ) an analyst from a tech group. Types invest in assets rather than companies roads sector, most investors would be to break project!
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