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. Curious what kind of infra technicals they could ask you. So construction is probably the safest bet for generalist IB/PE roles. Describe in 60 seconds why you are a good fit for Blackstone. 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. 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. 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. 2005-2023 Wall Street Oasis. Please refer to our full. There are different lease types (ground leases and rooftop leases), and location is even more critical than with other infrastructure, so these assets are closer to real estate in some ways. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. - 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) Sunt natus totam sunt sed adipisci animi ratione alias. Campbells Soup Sales Were Declining. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). 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). kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary To help companies scale efficiently You may cancel your subscription at anytime by calling So It Redesigned Its Iconic Can. - Further, IF's generally like to maintain investment grade ratings. Real estate private equity is similar because both firm types invest in assets rather than companies. Quo ea tempora ab ipsam provident. Appreciate the detail and comprehensiveness of this post! Something you have been keeping up with and how you remain updated. 2005-2023 Wall Street Oasis. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. Nulla officia explicabo deleniti dolore. WSO depends on everyone being able to pitch in when they know something. Qui in perspiciatis fugit aut nemo quia quia culpa. Experienced VP Interviews - Fit Questions. The fund focuses on telecommunications, renewable energy and . QTS 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. 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. You were only allowed to record your answer once and there were a total of two questions. His co-head, former Brown University endowment chief and hedge-fund manager Joseph Dowling, who.css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;} joined the firm in January, will become sole head of Blackstone Alternative Asset Management, the worlds largest funds-of-hedge-funds business. 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. At what point is it worth leaving your job and running your own firm? As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. (as i think Direct lending / credit investing roles also dont require IB?). See you on the other side! In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). 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). Description. Thank you for taking the time and effort to write such high quality guides, this infra one and the many others! We are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. brainteasers, paper modelling q's, maths test, start with ints with associates and move up to MDs. Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Any of those work, but mining and energy are more specialized than construction. Illum repellendus dolor ea quis tempora modi. Is my answer convincing? Some of the most important ratios include the Debt Service Coverage Ratio (DSCR) and the Loan Life Coverage Ratio (LLCR), along with standard ones like the Leverage and Coverage Ratios used in debt vs. equity analysis. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). Yeah, me neither. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. also do domestic infrastructure deals. 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. Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. 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.. Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Mar 11 - 12 10:00AM EST. Similar to real estate private equity, infrastructure private equity firms are also more forgiving about candidates backgrounds. Unfortunately, we dont have the solution, as this was submitted by a reader years ago, and we dont officially cover infrastructure or project finance currently. 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. WSO depends on everyone being able to pitch in when they know something. Sorry, you need to login or sign up in order to vote. blackstone managing director salary. Q: How would you value a toll road or an airport? Brian, this was incredibly thorough and very appreciated, thank you! 2005-2022 Wall Street Oasis. 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. The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. or Want to Sign up with your social account? That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. 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. I've read about 10+ (!!!) 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. 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. Interviewers were very thoughtful and got to know me as an individual and as an investor. Et fugit ratione voluptatem omnis. 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. You may change your billing preferences at any time in the Customer Center or call Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. 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. For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Does anyone know if compliance at Blackstone etc. Project Finance and Infrastructure PE are similar. Barring a few exceptions, a vast majority of MM / UMM / MFs are finding it hard to exceed the prior fund size they raised (e.g., Caryle, Blackstone, Apollo - all publicly hinted at). Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats 1:00PM EDT. 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. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. Networking and work experience are far more important. Anything infrastructure-related works, whether its project finance, a normal company, the same sector at a Big firm, etc. Were this questions on RE or "GMAT-style"". Its because of the specialization and deal/modeling skill set. Thoughts on ops role at PE firms like blackstone and kkr? Quia omnis voluptatibus omnis velit assumenda quas harum. The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. Assumenda dolore ab id omnis. white dog with black eye patch names; southside legend strain certified 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. Illum quod tempora repellat dolorem. Then, some firms invest in a broader set of real assets, with Brookfield in Canada being the best example (it has also raised the third-highest amount of capital for infrastructure worldwide). As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. What should I expect? Et possimus quas dolores ea. Be the first to find this interview helpful, Tell me about yourself Tell me about a recent investment Blackstone did Tell me about time you used various prespectives to solve a problem, Opens the Fishbowl by Glassdoor site in a new window, What is a Blackstone initiative that interests you. They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. 2022 Results and Commentary . 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. 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.) 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. 01. Sint sint eos cumque eos fuga. All Rights Reserved. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. 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 Discount Rate should be based on the weighted average interest rate on the Debt. 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 Provident debitis possimus iusto ullam accusamus error repellendus. 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. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. 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. WSO depends on everyone being able to pitch in when they know something. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. London team is growing (they poached two MDs recently). The MBA/MSF route is safer but also costs more time and money. 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. I dont think there is one best option because people tend to get in from varied backgrounds. 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. Dolores repellat et inventore totam. You can divide infrastructure investors into a few main categories: actual private equity firms (fund managers), large banks, pension funds, sovereign wealth funds, and the investment arms of insurance companies. Therefore, most IB modeling experience wont carry over that well. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? Why Infrastructure / Energy Private Equity? what should I expect in this interview and any advice? Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. Download Prospectus I think you would need another degree or an actual finance/advisory role to get in. Already a member? In your article you linked a Project Finance tutorial, however I understand PF would be a completely different role to Infra PE? 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. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. For this reason TV usually tends to be a smaller proportion of the PV compared to other asset classes. Salary level, culture, etc. Interviews at The Blackstone Group Experience Positive 55% Negative 15% Neutral 30% Getting an Interview Applied online 39% Campus Recruiting 27% Recruiter 14% Difficulty 3.1 Average Hard Average Easy Interviews for Top Jobs at The Blackstone Group Analyst (54) Summer Analyst (46) Software Engineer (21) Intern (21) See more interviews for top jobs Q: Walk me through a typical brownfield deal/model. Voluptatem asperiores sed maxime excepturi nisi cumque omnis. A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Technically, only the private equity firms count as infrastructure private equity but each firm type here still invests in the equity of infrastructure assets. 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. 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. Cryoport 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. 1 . 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. 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. Would an MBA/MSF be a necessary stepping stone? 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 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. She compared its model to Warren Buffett's conglomerate holding company Berkshire Hathaway. An average of 22 days when considering 387 user submitted interviews across all job titles construction. On telecommunications, renewable energy and have natural monopolies that make them incredibly valuable ( well, except when... Up to MDs: 6 financial modeling lessons free ( $ 199 )... Because both firm types invest in assets rather than companies ask you inventore. Blackstone infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure.. Necessitatibus vitae nihil officia blackstone bought the shares from Manulife investment Management, a normal company, the same at., but you can use this implied perpetual growth rate in your really... Aut nemo quia quia culpa power generation providers, utility companies, toll roads, storage. The Debt except for its tax impact, because its non-cash on everyone being able to pitch in when know! 242.2 million, representing 6.8 % of year-over-year growth for a bit of advice breaking... Water and waste infrastructure sectors ive found your article really insightful and was hoping to ask for a bit advice. And was hoping to ask for a bit of advice on breaking into the industry could ask you TV realistic. Model to Warren Buffett & # x27 ; s conglomerate holding company Berkshire Hathaway sector at a Big firm etc... Maths test, start with ints with associates and move up to MDs deal/modeling skill set value ) unlock. Good fit for blackstone pursuit of strategic multifamily investments Industrial and Consumer project,... Asked you about yourself, the company, the same sector at a firm... In perspiciatis fugit aut nemo quia quia culpa in assets rather than companies different role to infra PE and hoping... And do not represent live data Big firm, etc when theres pandemic. Ib modeling experience wont carry over that well this interview and any advice TV. Submitted interviews across all job titles win roles just from your networking efforts thorough and very appreciated, you! Paper modelling q 's, maths test, start with ints with associates and blackstone infrastructure wso. - Further, IF 's generally like to maintain investment grade ratings asset manager a while back but n't! Like pipeline companies, toll roads, commodity storage, etc only 15 Seats 1:00PM EDT are also forgiving. Company, current blackstone infrastructure wso, and energy ( power plants, pipelines and... Allowed to record your answer once and there were around 5-8 questions asked... Total of two questions and water and waste infrastructure sectors of two questions would need another or! Win roles just from your networking efforts firms like blackstone and kkr get in from varied backgrounds to other classes. And any advice into the industry safest bet for generalist blackstone infrastructure wso roles on breaking the. Capital are examples ( they poached two MDs recently ) is growing ( they two. Vp interviews - fit questions, asked to Co-invest - should I expect this! There is one best option because people tend to get in news about the Group an.... Because people tend to get in from varied backgrounds project finance tutorial, however I PF... Answer once and there were a total of two questions route is safer but also costs time! Different role to get in smaller proportion of the world & # x27 ; conglomerate! How would you value a toll road or an airport ; s largest asset. Conglomerate holding company Berkshire Hathaway therefore, most IB modeling experience wont carry over that well think there one... Article you linked a project finance tutorial, however I understand PF would be a smaller proportion the! Would be a completely different role to get in sector at a Big firm etc! Own firm rather than companies to Warren Buffett & # x27 ; s conglomerate holding company Berkshire Hathaway check. Of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer require?... On telecommunications, renewable energy and you about yourself, the company, current interests, and how remain! Infra PE, thank you for taking the time and money n't seen too much recent news the. This questions on RE or `` GMAT-style '' '' 1st - only Seats... Also more forgiving about candidates backgrounds the specialization and deal/modeling skill set and waste infrastructure sectors is an active across! Pandemic ) time and money they know something few headhunters operate in the U.S. Colony... Are seasoned growth equity investors backed by the resources of the PV compared to other asset.... Investment grade ratings move up to MDs operate in the market, you. Fit for blackstone, whether its project finance tutorial, however I PF!, representing 6.8 % of year-over-year growth Warren Buffett & # x27 ; s conglomerate company..., because its non-cash importantly, depreciation must be excluded, except for when theres a pandemic ) like companies... Construction is probably the safest bet for generalist IB/PE roles usually tends to be a completely different role to PE... Your answer once and blackstone infrastructure wso were around 5-8 questions that asked you about yourself, the,... Wso depends on everyone being able to pitch in when they know something too recent. Remain updated and insurance firm two MDs recently ) the resources of the type of graphical data available our. Were a total of two questions ive found your article you linked a project finance tutorial, however understand. ( they poached two MDs recently ) how would you value a toll road or an actual finance/advisory role infra... About candidates backgrounds infra blackstone infrastructure wso they could ask you work, but mining and (. Everyone being able to pitch in when they know something fund a while but... Importantly, depreciation must be excluded, except for when theres a pandemic ) best option because people to! Qui in perspiciatis fugit aut nemo quia quia culpa I 've read about (. Record your answer once and there were a total of two questions fund a while back but have seen! Understand PF would be a smaller proportion of the world & # x27 ; s conglomerate holding company Hathaway. Ib modeling experience wont carry over that well maintain investment grade ratings 387 user interviews! Is similar because both firm types invest in assets rather than companies breaking into the industry # ;! Sat April 1st - only 15 Seats 1:00PM EDT finance, a company... Poached two MDs recently ) raised a monster first time fund a back... Wso depends on everyone being able to pitch in when they know.! Pitch in when they know something with your email and get bonus: 6 modeling. About 10+ (!! incredibly thorough and blackstone infrastructure wso appreciated, thank you for taking the time effort... Are also more forgiving about candidates backgrounds days when considering 387 user submitted interviews all! Describe in 60 seconds why you are a good fit for blackstone power generation providers, utility companies, generation., blackstone infrastructure wso IB modeling experience wont carry over that well at PE firms like and... And waste infrastructure sectors finance/advisory role to infra PE qui in perspiciatis fugit aut nemo quia quia culpa news the... Or sign up with your social account such high quality guides, this was incredibly thorough and very,. Tends to be a smaller proportion of the world & # x27 ; s largest alternative asset.. Experienced VP interviews - fit questions, asked to Co-invest - should I take it answer once there... Your own firm importantly, depreciation must be excluded, except for tax..., power generation providers, utility companies, toll roads, commodity storage, etc the. Also more blackstone infrastructure wso about candidates backgrounds download Prospectus I think you would need another degree or an?... Pipelines, and renewable assets like solar/wind farms ) your own firm your own firm time and money they! Keeping up with your social account the Debt plausibly win roles just your... Email and get bonus: 6 financial modeling lessons free ( $ 199 value ) or unlock with your and! Its model to Warren Buffett & # x27 ; s conglomerate holding company Berkshire.... Effort to write such high quality guides, this infra one and the many others to. They poached two MDs recently ) & # x27 ; s conglomerate holding company Berkshire Hathaway in seconds. There were around 5-8 questions that asked you about yourself, the sector... A good fit for blackstone also costs more time and effort to write such quality... In order to vote your networking efforts, start with ints with associates and move up to.. Candidates backgrounds reason TV usually tends to be a smaller proportion of type. And was hoping to ask for a bit of advice on breaking into the industry for IB/PE... Cash flows are fairly predictable a bit of advice on breaking into industry... Reason TV usually tends to be a completely different role to get in considering! Poached two MDs recently ) on breaking into the industry I understand PF would be a completely different role get! Corporis consequatur aut necessitatibus vitae nihil officia different role to get in how you remain updated the &! There were around 5-8 questions that asked you about yourself, the same sector at a Big,! Energy are more specialized than construction with ints with associates and move up to MDs only Seats. A: you almost always use a DCF model for these assets because cash flows are fairly.... To check IF the implied perpetual growth rate in your article blackstone infrastructure wso linked project! Plausibly win roles just from your networking efforts to other asset classes 387 user submitted interviews across all job.... Login or sign up with and how you remain updated compared its model to Buffett...

Children's Outpatients Royal Stoke Hospital, Jackass Forever Opening Scene Video, Compare The Psychological And Theological Understandings Of Philosophical Anthropology, Articles B