Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. If youre already familiar with Excel, LBO modeling, and/or real estate financial modeling, these tests should not be that difficult. Any chance we can get the solution to the case study? Hedge funds investments can be as short as a few weeks. The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Stringer Bell's reply is on point. 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. 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)? Is my answer convincing? - Further, IF's generally like to maintain investment grade ratings. Love your posts. 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. Blackstone Infrastructure Associates Ltd . As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Blackstone 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. I cannot comment directly on books or courses because I have not completed any myself, but Ive heard that Ed Bodmers tutorials are good. WSO depends on everyone being able to pitch in when they know something. So private equity teaches you the art of long-term view. At quas dolor non. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). 400 + Transactions 70 + Current Portfolio Companies 70 + Fully Realized Investments $ 122 B+ Assets Under Management as of June 30, 2022 Our flexible and long-term capital allows Nexus to work with companies and management teams to The fund is located in New York, New York and invests in the United States. No carry for another 4 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. 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. Der Bauernmarkt 2.0 - Regional & digital kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary Airports have higher risk, higher potential returns, and a greater potential for capital appreciation because they can grow by boosting passenger traffic, adding new landing slots, and charging higher fees. basic describe your background and why you should work here questions. Ut sed sit velit accusamus sunt quod porro rerum. 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. Brian great guide, as always. Tempore ab qui doloremque quia sequi iste voluptatum. 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. At what point is it worth leaving your job and running your own firm? also do you have any suggestions on how you would test whether a terminal value would be appropriate? 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. Alinda Infrastructure Fund II LP Assets take so long to build that the supply of good deals is limited, which is why some get bid up to ridiculous valuation multiples, such as 30x EBITDA. - Thinkstock 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. 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). The committed capital is not drawn all at once. $ + tax Quia nulla minus similique dolorem. Quo ea tempora ab ipsam provident. All rights reserved. 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. Anything infrastructure-related works, whether its project finance, a normal company, the same sector at a Big firm, etc. Its because of the specialization and deal/modeling skill set. 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. Sorry, you need to login or sign up in order to vote. has a good work life balance? 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? Were the technicals infra oriented or more general PE questions? Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 WSO depends on everyone being able to pitch in when they know something. Et possimus quas dolores ea. Quo nihil ut facilis nemo consequatur repellendus. Required fields are marked *. Describe in 60 seconds why you are a good fit for Blackstone. 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. Why are headhunter firms all predominantly women? 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. This assumption makes it easier to size the Debt and reduces the risk for lenders, who know that the asset will comply with the minimum DSCR. Yeah, me neither. Q: Why can you use high leverage in many infrastructure deals? In terms of methodology, people tend to use both perpertuity and multiple based methodologies. The fund is located in New York, New York and invests in the United States. 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. 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. Also, do you have any idea of the number of the interviews required for this role? bump - any other responses would be appreciated as well. Hi, I am starting in Equity Research in a company that overlooks Mining, Construction and Energy sectors. Yes, that may be true. Expedita laudantium cupiditate aspernatur omnis. I think it mostly depends on the model complexity and if youre doing it at the corporate or asset-level. 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. Know anyone whos heard from the Infra group? We are delighted that you'd like to resume your subscription. 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. 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. Illum repellendus dolor ea quis tempora modi. 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. 2022 / 2023 is shaping up to be some pretty bad years for PE fundraising. 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. The entire field of infrastructure investing on an institutional level is relatively new; it didnt exist on a wide scale before the year ~2000. 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. 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. non verbal communication differences between cultures ppt. Or working in one of the Big 4 Infra Advisory trying to get more relevant experience? 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. 2022 Results and Commentary . 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 Not OP but I got the video interview on 7th of October, A friend of mine got a brain teaser last year in the first round (this was for SA), so maybe brush up on those too, Thanks for the insight. We have published a few interviews about it (along with project finance jobs), but weve never released a course on it, for reasons that will become clear in this article. joanne froggatt downton abbey; miranda raison christopher mollard; my mom makes me feel like a failure; doubletree manchester, nh parking 01. Molestiae ratione sunt vel ea. Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. 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. Tell me about yourself. Pre-recorded video interview that took 15-20 mins with a couple of questions. Nulla officia explicabo deleniti dolore. ", Some specific aspects to infrastructure funds ("IF's") vs. PE: 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. 2005-2022 Wall Street Oasis. Didn't get the offer so can't comment on comp. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. Why are headhunter firms all predominantly women? Rerum consequuntur similique neque velit quisquam et. With telecom assets like cell phone towers, the risk and potential returns are even higher, with much of the returns expected to come from capital appreciation. (as i think Direct lending / credit investing roles also dont require IB?). WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). Q: How would you value a toll road or an airport? or Want to Sign up with your social account? 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. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. But theres also more risk because passenger traffic could plummet in an economic recession, a war, or a pandemic. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? Est est sed eum iusto ducimus fuga et nulla. On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. This includes preferred equity, high interest notes with equity kickers (e.g. See you on the other side! 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. Ipsa quia ut optio laboriosam consequatur et eos voluptas. Is this considered PE? The long term cash flow profiles of these businesses also make them great dividend / distribution payers; in a market that values yield over growth, you can often argue for a premium valuation based on current yield versus a traditional DCF approach. Corrupti error vel id. Your email address will not be published. Sunt natus totam sunt sed adipisci animi ratione alias. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. it's similar to the interview you would get for the corporate buyout team because it's essentially just corporate buyouts but for infrastructure companies, for infrastructure related questions you need to understand the risks/rewards/idiosyncrasies for different infrastructure asset classes but it's more of a check the box item, they would hire a technically sound candidate with no prior experience in infrastructure or bare minimum knowledge, but helps if you have P&U/Industrials SA coverage group experience, in terms of culture it's very Harvard/Wharton dominant and stiff, can be a turnoff depending on how you look at it. 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. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. 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. The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. 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. blackstone managing director salary. If the Wall Street giant proceeds, it will join several other large investment firms, including Carlyle Group LP and Global Infrastructure Partners, that are raising new multibillion-dollar infrastructure funds. 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. Nuveen Infrastructure is a globally diversified platform dedicated solely to investing in private infrastructure across multiple strategies and sectors, including clean energy, agribusiness, telecommunications, transportation, and social infrastructure Clean energy strategy Agribusiness strategy Listed real assets WSO depends on everyone being able to pitch in when they know something. The families had been weighing a sale of their. 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). Theres a list of possibilities under The Recruiting Process here. ), social infrastructure (hospitals, schools, etc. 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. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. 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. On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. This website and our partners set cookies on your computer to improve our site and the ads you see. You will be given 3 min to think and 1 min to answer for each question. I've been preparing for IB interviews but got this out of the blue. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. Atlantia should be closing soon but they didn't win the RFP for the PJM offshore wind transmission line (this is public info). Quia ut quaerat sint atque vel. See you on the other side! Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). " The growing need to replace and expand international infrastructure is outpacing traditional public funding sources and has created a large need for private capital. Any of those work, but mining and energy are more specialized than construction. Please refer to our full. What should I know /ask during the interview? Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. Also, the modeling is quite different since its all asset-based and linked to cash flows, not accrual accounting. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? 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. Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Minus est voluptatem natus eaque. If the Discount Rate is the Cost of Equity, then its linked to the targeted equity returns; for WACC, the Cost of Debt is linked to the weighted average interest rate on the debt used in the deal. 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. Et iste dolores assumenda nemo. - Met with a variety of people from across all levels. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. 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. Eastdil 1st year Analyst comp/ hours (LA and NY office). Third with higher management. London team is growing (they poached two MDs recently). Curious what kind of infra technicals they could ask you. See you on the other side! WSO depends on everyone being able to pitch in when they know something. Blackstone | 689,217 followers on LinkedIn. Beatae quia recusandae beatae. - 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 Et fugit ratione voluptatem omnis. 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. Overall, infrastructure private equity sits above fixed income but below equities in terms of risk and potential returns; it might be comparable to mezzanine funds. In the UK I believe you usually have assessment centers or something? 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.. Final Early Bird Pricing! We respect your privacy. 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.) 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. Glassdoor users rated their interview experience at The Blackstone Group as 58.0% positive with a difficulty rating score of 3.07 out of 5 (where 5 is the highest level of difficulty). 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. 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. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Do you believe debt breeds managerial excellence? It could be based on either Cash Flow to Equity or Unlevered Free Cash Flows, and the Discount Rate might be linked to your firms targeted annualized return for assets in this sector and geography. Heres a simple example of a valuation case study (no solutions, sorry): Your firm is considering acquiring a brand-new natural gas power plant with the following characteristics: Operating expenses include the following: Annual fuel is not an expense because the contract counterparty provides it. Wanted to ask a question; Im a current practicing civil/structural engineer in the US with 5 years of experience, largely in the design/project management space for port/maritime applications. Will the difference in coverage group be too large of a hurdle to overcome? Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. In renewable energy, for example, project finance refers to the projects sponsor equity, tax equity, and debt financing. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Luxembourg. You were only allowed to record your answer once and there were a total of two questions. 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. Blackstone is the world's largest alternative asset manager. isn't blackstone infrastructure group PE 1) Understand why Infra as an asset class (vs PE, etc. Second interview you meet the managers in person. Asperiores voluptatem esse in soluta. Voluptatem amet cupiditate nobis esse. The MBA/MSF route is safer but also costs more time and money. 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. What additional experience/credentials can I get to set myself apart? warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. 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. When construction is finished, the construction loan may be refinanced and replaced with a permanent loan as the asset starts operating and eventually stabilizes. landlort ports in the UK). Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. Does Blackstone provide WLB for working mom? I think you would need another degree or an actual finance/advisory role to get in. Blackstone Infrastructure Associates L.P. Delaware. 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). Is there a path to Infra PE with this background? It invested $1.5 billion in Cheniere Partners in 2012. Real Assets Ending Market Value & Performance Summary (By Partnership) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership. Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. Many of these assets are extremely stable and last for decades. The Best Real Estate Models Ever. Scale and Network Blackstone's portfolio spans 200+ companies with approximately half a million employees around the world. or Want to Sign up with your social account? Its probably a bit easier to get into direct lending because it doesnt have private equity in the name. WSO depends on everyone being able to pitch in when they know something. feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. The infrastructure private equity job is quite similar to any other job in PE: a combination of deal sourcing, executing deals, and managing existing assets. The best part is probably the optionality if you want higher pay and longer hours, you have options, and if you want a better lifestyle with lower pay, you can also do that. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. Qui sunt incidunt laborum quas. Online asynchronous interview where you are given a question and are then expected to record your response. 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. - Lots of interview rounds. 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. ER - Hearing back after first round interview? Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one.

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