So, all else being equal, theyd prefer someone who knows infrastructure very well to someone with IB experience but in an unrelated group with no exposure to asset-level modeling. 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. Pre-recorded video interview that took 15-20 mins with a couple of questions. On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. See you on the other side! Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. Expedita laudantium cupiditate aspernatur omnis. Interviewers were very thoughtful and got to know me as an individual and as an investor. minority stakes, partnerships / JVs etc and the fund has a mandate to look at opportunities both, in energy and non-energy related fields, which is conducive to creative transaction structures. They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. 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. 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. What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. The main difference is slightly different names: greenfield refers to brand-new assets that a sponsor is building, while brownfield refers to existing assets that it is acquiring. Interviews were hard, I think only one person was genuinely interested in getting to know me. At quas dolor non. In the UK I believe you usually have assessment centers or something? You may cancel your subscription at anytime by calling As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Theres a list of possibilities under The Recruiting Process here. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. We are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. Really appreciate you taking the time to put this together. Does anyone know if compliance at Blackstone etc. 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. Yeah, me neither. 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.. Please refer to our full privacy policy. 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. Rerum qui maxime consequatur necessitatibus et reprehenderit. In renewable energy, for example, project finance refers to the projects sponsor equity, tax equity, and debt financing. We tend to refer to equity investing in the sector as infrastructure private equity and debt investing as project finance for clarity. 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 . Beatae quia recusandae beatae. 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. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Continue reading your article witha WSJ subscription, Already a member? Q: Walk me through a typical brownfield deal/model. Why Infrastructure / Energy Private Equity? Do you believe debt breeds managerial excellence? Glassdoor users rated their interview experience at. Hi, I am starting in Equity Research in a company that overlooks Mining, Construction and Energy sectors. Assumenda dolore ab id omnis. 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. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? Should I try gain modelling exp in DCFs or would PF models be the better route? I dont think there is one best option because people tend to get in from varied backgrounds. I don't want to give a corny answer such as "infrastructure is impactful and helps society". Networking and work experience are far more important. Experienced VP Interviews - Fit Questions. - Lots of interview rounds. Download Prospectus Interest on the debt is capitalized during the construction period. 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, Ace all your PE interview questions with the WSO Private Equity Prep Pack: http://www.wallstreetoasis.com/guide/private-equity-interview-prep-questions. Blackstone will invest $500 million in privately held Resolution Life and help it raise roughly $2.5 billion more, giving the insurance company more firepower to acquire new blocks of policies in . 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. London team is growing (they poached two MDs recently). Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. - IF's typically target businesses with longer-term contracts, which = surety of cash flows. Campbells Soup Sales Were Declining. 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 Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. The families had been weighing a sale of their. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. 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. Sint sint eos cumque eos fuga. Thanks! 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. Quia maiores quia iste cumque similique qui repellendus. We are delighted that you'd like to resume your subscription. What is something about you that we cannot see in your resume? ER - Hearing back after first round interview? Comparable projects cost $1,000/kW currently and are expected to increase in price at 2% per year, with a useful life of 40 years. All Rights Reserved. The biggest infrastructure investing firm worldwide is Macquarie Infrastructure and Real Assets (MIRA), which is a branch of the Australian bank Macquarie. 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)? 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). Would caveat that because of the higher prevalence of auctions due to pricings getting competitive the work-life balance I see is getting worse even on the pension fund end of the scale and so comp is adjusted accordingly. I've read about 10+ (!!!) The process took 1 day. The Best Real Estate Models Ever. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. Just like pensions, they also target lower returns, but they also have far more capital since theyre backed by governments in places like the Middle East and Asia. Blackstone Infrastructure Associates (Cayman) NQ L.P. Cayman Islands. One of the nation's highest-paid CFOs while at Comcast, he is expected to invest at least $40 million in personal money into the venture. 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. 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. Quia nulla minus similique dolorem. Commodi in optio ut doloribus ullam voluptatem ex. 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. Yes, maybe not equivalent, but similar. Et possimus quas dolores ea. 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). Apr. 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. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) Unlock with your social account. Nulla officia explicabo deleniti dolore. This may be the single best resource on the internet for an infrastructure finance overview. This website and our partners set cookies on your computer to improve our site and the ads you see. Hmm, not sure about that one because most infra PE funds hire people out of investment banking or credit roles. Many of the other large banks also do infrastructure investing, but they often use different names for their infra businesses (e.g., Goldman Sachs and West Street Infrastructure Partners or Morgan Stanley and North Haven Infrastructure Partners). Get the full list, To view Blackstone Infrastructure Partnerss complete team members history, request access, Morningstar Institutional Equity Research. julie dawson daughter of les dawson. Thoughts on ops role at PE firms like blackstone and kkr? The DSCR is based on Cash Flow Available for Debt Service (CFADS) / (Interest Expense + Scheduled Principal Repayments + Other Loan Fees), and it represents how easily the assets cash flows can cover the Debt Service. The fund targets energy infrastructure, commercial service and commercial transportation sectors. 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. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. So private equity teaches you the art of long-term view. 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