And what are some of the important credit stats and ratios? But theres also more risk because passenger traffic could plummet in an economic recession, a war, or a pandemic. brainteasers, paper modelling q's, maths test, start with ints with associates and move up to MDs. Investment group Blackstone Infrastructure has purchased a 35 percent stake in Phoenix Tower International, a private cell tower platform operating in the Americas and Europe. 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. Management is very friendly. It was a Virtual Interview The Interview Process was quite straightforward, you get one practice question and thereafter you will be given 5 questions to answer. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. 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). Acquisitions at a top institutional investor or REIB? I interviewed at The Blackstone Group (Singapore) in Feb 2023. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. 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. Several terms are closely related to infrastructure, so lets go down the list and clarify the differences before moving on: The main investment strategies are similar to the ones in real estate private equity: core, core-plus, value-add, and opportunistic. Will the difference in coverage group be too large of a hurdle to overcome? Describe in 60 seconds why you are a good fit for Blackstone. Vel sed eos nihil enim nam. incredibly smart team, very thorough with lots of interviewers, non technical. 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. Really appreciate you taking the time to put this together. 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. Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. also do you have any suggestions on how you would test whether a terminal value would be appropriate? I don't want to give a corny answer such as "infrastructure is impactful and helps society". 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. Project Finance and Infrastructure PE are similar. See you on the other side! Customer Service. Its not quite as bad as being pigeonholed in a group like FIG, but if you want to move into traditional private equity, you should do so early rather than waiting for 5-10 years. Hi, I am starting in Equity Research in a company that overlooks Mining, Construction and Energy sectors. is it possible for the section where you mentioned TV is determined by the perpetuity growth rate or an exit multiple, that for infrastructure assets, i generally see them modelled to the end of concession in which case there isnt really a terminal value. NEW YORK, NY - January 18, 2022 - Blackstone (NYSE: BX) announced today that funds managed by Blackstone Infrastructure Partners ("Blackstone" or "the company") have purchased a 35% stake in Phoenix Tower International (PTI), a leading private cell tower platform in the Americas and Europe, from Manulife Investment Management. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Thank you so much for the guidance you provide! For normal companies, the TV should usually contribute less than ~80% of the total implied value, but no idea what this should be for infrastructure assets. i.e. 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. 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. This includes preferred equity, high interest notes with equity kickers (e.g. I used this to initially break into project finance and now work at an infra-PE fund. has a good work life balance? What additional experience/credentials can I get to set myself apart? 2022 Results and Commentary . All Rights Reserved. Its because of the specialization and deal/modeling skill set. The committed capital is not drawn all at once. 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.. Thanks for the great article. 2023 PitchBook. Eastdil 1st year Analyst comp/ hours (LA and NY office). Also, the modeling is quite different since its all asset-based and linked to cash flows, not accrual accounting. Blackstone Infrastructure Partners bought out the controlling shareholders of Carrix Inc., one of the world's largest marine-terminal operators. If you are running a levered DCF, i.e. Odit id dolor est dolorem ut. Required fields are marked *. 90% technical for an analyst role. top feeder schools to wall streetirina emelyanova pasternak 26th February 2023 / in coastal carolina football camp 2022 / by / in coastal carolina football camp 2022 / by PitchBook helps you see a funds investments based on target industry, year and deal typeso you can quickly understand its strategy at a glance. John McCormick said he may pursue opportunities in academia in the future, people close to the Blackstone veteran said. Tired of getting emails on Fridays that ruin my weekend. 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. The entire process took about max 15 minutes. On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. Thanks! Venture capital is not a likely exit opportunity because infrastructure assets are the opposite of early-stage startups: stable, with highly predictable cash flows and growth profiles. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). julie dawson daughter of les dawson. QTS ely funeral home neptune, nj; longest nfl game weather delay; cari laque bio; Online Forms. Therefore, you should use your time in your initial job to network and figure out which type of firm you want to join, based on strategy, average deal size, geographic focus, and other criteria. feel comfortable with accounting, dcf, m&a models, and lbo's. Blackstone Infrastructure Associates L.P. Delaware. Thank you for taking the time and effort to write such high quality guides, this infra one and the many others! Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. Already a member? The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. Et iste dolores assumenda nemo. Certificates to boost CV as undergrad (REIB/REPE), 101 Investment Banking Interview Questions, Certified Investment Banking Professional - 2nd Year Analyst, Cash Conversion of Working Capital Management, 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. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. 2005-2023 Wall Street Oasis. 22 Followers. 2005-2023 Wall Street Oasis. Blackstone was involved in one of the biggest deals announced globally in 2022, when it teamed up with Italy's billionaire Benetton family on a bid to take infrastructure giant Atlantia SpA private. The quality on this website always blows me away. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. Quia ut quaerat sint atque vel. 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). 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. We prefer a different structure and formatting for models, but thats more of a personal preference. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. Delaware. Quo nihil ut facilis nemo consequatur repellendus. 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. 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. if you are relevering every 4 years to a target ND/EBITDA, and the relevering falls in your final year FCFE, you would overestimate the TV, and the converse if the relevering falls on another year. For many years, fund managers dominated the market, but institutional investors such as pension funds have been building their internal investment teams to do deals directly. landlort ports in the UK). Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. 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. As of June 30, 2020. You will be given 3 min to think and 1 min to answer for each question. In terms of methodology, people tend to use both perpertuity and multiple based methodologies. 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. Complete information about investing in shares of BREIT is available in the prospectus. Description. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? What should I know /ask during the interview? Regarding assets with concession life, I have seen concession life extension assumptions being included in models, but in that case you would need additional assumptions, as you would effectively be capturing the PV of the spread between the concession rights payment (outflow) and the inflows from the later years. One thing on the definition of project finance, I am used to hearing a much broader definition that includes the entire capital stack of a separate legal entity (the project), all of which have senior claims over the (multiple) parent owners equity holders or debtors. All rights reserved. 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. Quo ea tempora ab ipsam provident. 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. Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. blackstone managing director salary. 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. Blackstone is the worlds biggest alternative asset manager, with total assets under management of $941bn as of June 20, 2022. Asperiores voluptatem esse in soluta. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. I have focused my recruiting primarily on traditional PE focusing on LBOs, but came across this opportunity and decided to interview for it. Its probably a bit easier to get into direct lending because it doesnt have private equity in the name. 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). 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. Rerum qui maxime consequatur necessitatibus et reprehenderit. Can a banks prestige override that? - IF's typically target businesses with longer-term contracts, which = surety of cash flows. Then, you forecast the revenue, expenses, and cash flow in different scenarios and size the debt such that it complies with requirements, such as a minimum Debt Service Coverage Ratio (DSCR). An investment in BREIT involves risks. Any chance we can get the solution to the case study? 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 . 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. This may be the single best resource on the internet for an infrastructure finance overview. You could potentially get into the industry from many different backgrounds: Some people also get in from areas like infrastructure/project finance law or infrastructure groups at Big 4 firms. Luxembourg. Commodi in optio ut doloribus ullam voluptatem ex. 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. At what point is it worth leaving your job and running your own firm? For example, a private firm might build a toll road, and the local government might guarantee a certain amount in revenue per year as an incentive to complete the project. Why BlackRock? For this reason TV usually tends to be a smaller proportion of the PV compared to other asset classes. Final Early Bird Pricing! Sunt natus totam sunt sed adipisci animi ratione alias. - Met with a variety of people from across all levels. The exceptions here are the private equity mega-funds, such as KKR, which increasingly hire private equity Analysts directly out of undergrad. The fund focuses on telecommunications, renewable energy and . Second interview you meet the managers in person. The process took 1 day. Real-life infrastructure models can be complex, but time-pressured case studies are a different story. 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? Blackstone Infrastructure Associates Ltd . Deal sourcing consists of inbound flow from bankers, competitive auctions, secondary deals from other financial sponsors, and sometimes buying entire infrastructure companies or individual assets. Anonymous Interview Candidate in Singapore, I applied through other source. .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;}Sign In, Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. Its hard to compare to direct lending because it depends on what youre looking for. Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. See you on the other side! 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. 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. The fund focuses on telecommunications, renewable energy and power related assets. Your information will not be shared. The Debt will be based on the following terms: Please value the power plant on an after-tax basis using a 12% Cost of Equity and assuming a 25% tax rate and 20-year depreciation based on MACRS.. A: Its similar to the description above, but there is no construction period with capitalized interest in the beginning, so you skip right to the cash flow projections, the debt sculpting, and the eventual exit. There are plenty of miscellaneous firms that do infrastructure investing as well. Private equity also gives you the ability to work closely with the company over an extended period of time. 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. 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). Similar to real estate private equity, infrastructure private equity firms are also more forgiving about candidates backgrounds. Managing Directors: $750K - $1.8 million. Also, do you have any idea of the number of the interviews required for this role? For reference: https://www.ucl.ac.uk/prospective-students/graduate/taught-degrees/infrastructure-investment-finance-msc. ), social infrastructure (hospitals, schools, etc. Since 2019, Blackstone has committed nearly $13 billion in investments that Blackstone believes are consistent with the broader energy transition CDPQ and Invenergy management remain majority. Culture seems pretty stiff but sharp people who work hard. Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. Nulla officia explicabo deleniti dolore. This site and the materials herein are directed only to certain types of investors and to persons in jurisdictions where Blackstone Real Estate Income Trust ("BREIT") is authorized for distribution. - 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) Quia nulla minus similique dolorem. $ + tax 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. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. 2005-2022 Wall Street Oasis. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. You will be notified in advance of any changes in rate or terms. First round of interviews are done over zoom. https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. 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. The biggest infrastructure investing firm worldwide is Macquarie Infrastructure and Real Assets (MIRA), which is a branch of the Australian bank Macquarie. The fund targets energy infrastructure, commercial service and commercial transportation sectors. what should I expect in this interview and any advice? Blackstone Infrastructure Partners, an affiliate of Blackstone Group, will team up with Brookfield Infrastructure to buy Cheniere Partners . Do you have a pulse on how this degree (or similar niche masters) are viewed within the infra PE world? 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. Brian great guide, as always. 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 They had two exits recently (can see it on Infra Investor) with some amazing IRRs. Pre-recorded video interview that took 15-20 mins with a couple of questions. In the UK I believe you usually have assessment centers or something? Thoughts on ops role at PE firms like blackstone and kkr? Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. - 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 Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. I have an upcoming first round at a leading infrastructure PE firm. (as i think Direct lending / credit investing roles also dont require IB?). Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). 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% The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. The Discount Rate should be based on the weighted average interest rate on the Debt. London team is growing (they poached two MDs recently). Does anyone know if compliance at Blackstone etc. Probably talked to half of the team. Yes, maybe not equivalent, but similar. Directors: $400K - $900K. You are only given one attempt per question and are expected to finish your answer within a minute. See you on the other side! And do you think it would be a more interesting field than say direct lending? ER - Hearing back after first round interview? 101 Investment Banking Interview Questions, Certified Private Equity Professional - 2nd 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. 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. Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one. Beatae quia recusandae beatae. Theres a blurry line between energy private equity and infrastructure private equity in the U.S., which is why firms like ArcLight and Energy Capital could be in either category. 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. What is a blackstone endeavor/initiative that you find interesting? 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. I dont think there is one best option because people tend to get in from varied backgrounds. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). Apr. Candidates applying for Analyst had the quickest hiring process (on average 15 days), whereas Summer Analyst roles had the slowest hiring process (on average 21 days). 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. Is there a path to Infra PE with this background? 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. 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. Q: How would you compare the risk and potential returns of different infrastructure assets? Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. When construction is finished, the construction loan may be refinanced and replaced with a permanent loan as the asset starts operating and eventually stabilizes. 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)? Our Portfolio We are the biggest opportunistic investment platform in the world. Est est sed eum iusto ducimus fuga et nulla. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). Third with higher management. 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. Hedge funds investments can be as short as a few weeks. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. Eveniet totam pariatur adipisci non. - People were nice and welcoming - Very technical towards end of process. Sign In. We guarantee 100% privacy. Alinda Infrastructure Fund II LP Et fugit ratione voluptatem omnis. 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.
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