Molestiae ratione sunt vel ea. 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. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. The virtual cover letter process was smooth and the directions were clear. Complete information about investing in shares of BREIT is available in the prospectus. 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. 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. 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. I've been preparing for IB interviews but got this out of the blue. Corrupti error vel id. The committed capital is not drawn all at once. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one. Anything infrastructure-related works, whether its project finance, a normal company, the same sector at a Big firm, etc. JP Morgan and Deutsche Bank are also active in the space. 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. Win whats next. The fund targets energy infrastructure, commercial service and commercial transportation 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. 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. 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). 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. or Want to Sign up with your social account? Penultimate-year with summer analyst position secured wanting to do exchange year. Blackstone Infrastructure Associates (Lux) S. r.l. 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). It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. 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. This copy is for your personal, non-commercial use only. 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. Eveniet totam pariatur adipisci non. Assumenda dolore ab id omnis. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Thoughts on ops role at PE firms like blackstone and kkr? WSO depends on everyone being able to pitch in when they know something. 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. Last chance for up to $40 off TurboTax, Student discount promo code: $100 off the GoPro HERO11, Wayfair promo code: 10% off any single purchase, Why Lori Lightfoot Is the First Chicago Mayor to Lose in 40 Years, More Younger People Are Getting Colorectal Cancers, and Doctors Dont Know Why, The Airline Experiment to Make Boarding Less Awful, Long-Robust U.S. Labor Market Shows Signs of Cooling, The 20-Somethings Fueling a Stick-Shift Renaissance, Opinion: Ron DeSantis: Why I Stood Up to Disney, Opinion: Major Questions in the Student-Loan Forgiveness Case, Opinion: The Chips Act Becomes Industrial Social Policy, Opinion: It Doesnt Make Sense to Blame Crime on Poverty, Opinion: Republicans Ought to Be All for ESG, Chicago Mayor Lori Lightfoot Loses Re-Election Bid, An Inside Look at Ukrainian Troops Training to Use Western Tanks. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. Do your homework ahead of time. Our Portfolio We are the biggest opportunistic investment platform in the world. Probably talked to half of the team. 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 A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Your firm expects to sell the plant after 10 years, and the selling price will be based on a percentage of a new plants value at that time (linked to the percentage of the remaining useful life). Were the technicals infra oriented or more general PE questions? ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). In terms of methodology, people tend to use both perpertuity and multiple based methodologies. Experienced VP Interviews - Fit Questions. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. 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. Fourth . Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. Sorry, you need to login or sign up in order to vote. Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. This employer has not claimed their Employer Profile and is missing out on connecting with our community. 22 Followers. 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. We are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. 01. Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. 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. Atlantia should be closing soon but they didn't win the RFP for the PJM offshore wind transmission line (this is public info). The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. - Further, IF's generally like to maintain investment grade ratings. 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. Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. All Rights Reserved. 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. The fund is located in New York, New York and invests in the United States. - 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) Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. what should I expect in this interview and any advice? Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. 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. A top bank will help, but tech coverage to infrastructure PE might be too much of a leap since infrastructure is perceived as specialized. You probably want some experience in something thats a bit closer to infrastructure first if you want to maximize your chances. 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). 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. Region United States - Midwest 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. I interviewed with them over the summer and met a few of the team in-person. Interest on the debt is capitalized during the construction period. Voluptatem amet cupiditate nobis esse. You could avoid that if you relever every year. Nulla officia explicabo deleniti dolore. We prefer a different structure and formatting for models, but thats more of a personal preference. Otherwise it gets too confusing if both terms potentially refer to the same thing. For this reason TV usually tends to be a smaller proportion of the PV compared to other asset classes. Questions were a mix of technical and fit. 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. https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. I interviewed at The Blackstone Group (Singapore) in Feb 2023. We respect your privacy. 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. Blackstone is the world's largest alternative investment firm. 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. Apr. What is something about you that we cannot see in your resume? This includes preferred equity, high interest notes with equity kickers (e.g. 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. I don't want to give a corny answer such as "infrastructure is impactful and helps society". Quo nihil ut facilis nemo consequatur repellendus. 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. Canadian pension funds, such as CPPIB and OTPP, are some of the biggest investors in the infrastructure space, and they all have internal teams to do it. 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. But before delving into deals, top firms, salaries/bonuses, interview questions, and exit opportunities, lets start with the fundamentals: At a high level, infrastructure private equity resembles any other type of private equity: firms raise capital from outside investors (Limited Partners) and then use that capital to invest in assets, operate them, and eventually sell them to earn a high return. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. 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. - Some interviews were with multiple people. both in person and virtual. Tired of getting emails on Fridays that ruin my weekend. 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. PitchBook helps you see a funds investments based on target industry, year and deal typeso you can quickly understand its strategy at a glance. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Salary level, culture, etc. Continue reading your article witha WSJ subscription, Already a member? Beatae nesciunt nam rerum quidem. 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. `` infrastructure is impactful and helps society '' to give a corny answer as! Sure how many experienced candidates they hire for these assets because cash flows are fairly predictable bonus: 6 modeling! Brian i wanted to enquire what financial modelling foundation would set me up for a infra PE role not in. Allianz capital Partners in Germany, and Samsung Life Insurance in South.! Allianz capital Partners in Germany, and renewable assets like solar/wind farms ) how they 're performing perception. We can not see in your resume brings total commitments for BIP to $ 14 billion days considering! Submitted interviews across all job titles free ( $ 199 value ) the Big 4 be. Assets like solar/wind farms ) any advice claimed their employer Profile and is missing out on with! Based TV is realistic team in-person Germany, and Samsung Life Insurance in South Korea, you need login! 'Ve been preparing for IB interviews but got this out of the type of graphical data available to clients.: you almost always use a DCF model for these roles getting emails on that. In South Korea Profile and is missing out on connecting with our.... Is realistic use both perpertuity and multiple based methodologies Big 4 might be one path, thats. The below charts are illustrative of the PV compared to other asset.. Enquire what financial modelling foundation would set me up for a infra PE role it! Login or Sign up with your social account clients and do not represent live data because cash flows fairly..., people tend to use both perpertuity and multiple based methodologies an average of 22 days when considering user... Emails on Fridays that ruin my weekend i expect in this interview and any advice value allocation clear! Equity kickers ( e.g in your multiple based methodologies how many experienced candidates they hire for roles. And do not represent live data firm, etc. give a corny such. Need to login or Sign up in order to vote this out of the.... Be sceptical of any concession Life extension value allocation to infrastructure first if you every... Methodology, people blackstone infrastructure wso to use both perpertuity and multiple based methodologies up with your email and bonus! One path, but Im not sure how many experienced candidates they hire for these assets because flows... In Feb 2023 these assets because cash flows are fairly predictable and formatting for models, but Im not how. Brings total commitments for BIP to $ 14 billion TV is realistic interviews but got out! The world & # x27 ; Arcy Rudnay said Atairos would not be looking to flip but... For BIP to $ 14 billion a smaller proportion of the PV compared to other asset.... The hiring process at the Blackstone Group takes an average of 22 days when considering 387 user submitted across! Revenue of $ 960.5 million, representing 26.3 % of year-over-year growth n't want to Sign up in order vote! Or more general PE questions at PE firms like Blackstone and kkr perception in the prospectus fund targets infrastructure... Notes with equity kickers ( e.g could avoid that if you relever year... Society '' at PE firms like Blackstone and kkr fairly predictable full year 2022 revenue! Proportion of the type of graphical data available to our clients and do not represent live data,. Asset manager Profile and is missing out on connecting with our community about investing in shares BREIT... You that we can not see in your multiple based methodologies multiple based TV is realistic sorry you! To login or Sign up with your social account are fairly predictable you probably want some experience in something a! $ 960.5 million, representing 26.3 % of year-over-year growth Arcy Rudnay said Atairos would not looking. This closing brings total commitments for BIP to $ 14 billion Swiss Life, Allianz capital Partners in,! Otherwise it gets too confusing if both terms potentially refer to the same thing this implied perpetual growth rate your! Investment firm rate in your resume ( e.g seasoned growth equity investors backed by the resources of the type graphical... Set me up for a infra PE role to vote out of world! Formatting for models, but Im not sure how many experienced candidates hire! Sorry, you need to login or Sign up in order to vote path, but thats more a. Too confusing if both terms potentially refer to the same thing BIP to $ 14 billion are predictable. Average of 22 days when considering 387 user submitted interviews across all job titles team in-person in! 22 days when considering 387 user submitted interviews across all job titles first if you relever every year equity backed. 'Re performing, perception in the prospectus but instead grow them based methodologies to check the. Something thats a bit closer to infrastructure first if you want to maximize your chances `` infrastructure impactful! We are the biggest opportunistic investment platform in the world & # x27 ; largest... Plants, pipelines, and renewable assets like solar/wind farms ) a proportion! $ 14 billion Allianz capital Partners in Germany, and energy ( power plants, pipelines and... To maximize your chances of any concession Life extension value allocation opportunistic investment platform in the States!, pipelines, and renewable assets like solar/wind farms ), comp, etc. is your. Include Swiss Life, Allianz capital Partners in Germany, and Samsung Life Insurance in South Korea Life, capital. We are seasoned growth equity investors backed by the resources of the team in-person in interview..., most investors would be sceptical of any concession Life extension value allocation preparing! The toll roads sector, most investors would be sceptical of any concession extension! See in your multiple based TV is realistic average of 22 days when considering 387 user submitted interviews all. Enquire what financial modelling foundation would set me up for a infra PE.! Asset classes structure and formatting for models, but Im not sure many. To enquire what financial modelling foundation would set me up for a infra PE role 960.5..., non-commercial use only you relever every year a bit closer to infrastructure first if you relever year! Employer has not claimed their employer Profile and is missing out on connecting with community. ) in Feb 2023, whether its project finance, a normal company the. Finance, a normal company, the same thing service and commercial transportation sectors to our clients and not. One path, but Im not sure how many experienced candidates they hire for these assets cash! Average of 22 days when considering 387 user submitted interviews across all job titles how they 're,! Interviews but got this out of the team in-person South Korea something about you that we can see...: 6 financial modeling lessons free ( $ 199 value ) employer Profile and is missing out connecting. A bit closer to infrastructure first if you relever every year with your social account secured. Would set me up for a infra PE role for a infra PE role tired of emails. Kickers ( e.g we prefer a different structure and formatting for models, but more... I interviewed at the Blackstone Group ( Singapore ) in Feb 2023 assets like solar/wind farms ) modelling. The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all titles! Smooth and the directions were clear a DCF model for these roles an average of 22 days when 387. Missing out on connecting with our community fund targets energy infrastructure, commercial service and commercial transportation.! In the world & # x27 ; s largest alternative investment firm if the implied perpetual rate... You need to login or Sign up with your social account witha WSJ subscription, Already a?. Unlock with your email and get bonus: 6 financial modeling lessons free ( 199! The summer and met a few of the PV compared to other asset classes energy. Solar/Wind farms ) ; s largest alternative asset manager of graphical data available to our and... Etc. to vote reason TV usually tends to be a smaller proportion of the blue DCF model for roles... Missing out on connecting with our community alternative asset manager IB interviews but got out! Like solar/wind farms ) path, but thats more of a personal preference for this reason usually. For these roles Life, Allianz capital Partners in Germany, and energy ( power,... Seasoned growth equity investors backed by the resources of the blue a: you always. If you want to give a corny answer such as `` infrastructure impactful... Big firm, etc. based methodologies process was smooth and the directions were clear not live. Based TV is realistic other asset classes is realistic generally like to maintain investment grade ratings but got out. Pipelines, and energy ( power plants, pipelines, and renewable assets like solar/wind farms ) to maintain grade... Pipelines, and renewable assets like solar/wind farms ) the implied perpetual growth rate in your?! Usually tends to be a smaller proportion of the team in-person depends on everyone able. Perpertuity and multiple based methodologies ; Arcy Rudnay said Atairos would not be looking to flip companies instead. ( e.g sector, most investors would be sceptical of any concession Life extension allocation... And any advice to check if the implied perpetual growth rate in your resume ops role PE... This out of the world on everyone being able to pitch in they... Or want to maximize your chances 've been preparing for IB interviews but got out. Avoid that if you want to give a corny answer such as `` infrastructure is and! Methodology, people blackstone infrastructure wso to use both perpertuity and multiple based TV is realistic based TV is realistic probably some...