2005-2022 Wall Street Oasis. Q: How would you value a toll road or an airport? ER - Hearing back after first round interview? The most common entry points into infrastructure PE are also the most common exit opportunities: investment banking, project finance, real estate, other areas of PE, infrastructure corporates/developers, and Big 4 infrastructure groups. Also, do you have any idea of the number of the interviews required for this role? Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. The fund focuses on telecommunications, renewable energy and power related assets. What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. Est est sed eum iusto ducimus fuga et nulla. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. Blackstone Infrastructure Associates (Cayman) L.P. Cayman Islands. Which, I know, is easier said than done. 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. 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. 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). 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). landlort ports in the UK). Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. Appreciate the detail and comprehensiveness of this post! Q: Why can you use high leverage in many infrastructure deals? You may cancel your subscription at anytime by calling 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. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. Illum quod tempora repellat dolorem. Sign In. Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. This added complexity is something I think I'd enjoy. Probably talked to half of the team. Sidley represented Invenergy in a definitive agreement with Blackstone Infrastructure Partners and Caisse de dpt et placement du Qubec (CDPQ) for an approximately US$3 billion equity investment in Invenergy Renewables Holdings LLC ("Invenergy Renewables"), the largest private renewable energy company in North America, by funds managed by Stringer Bell's reply is on point. The fund focuses on telecommunications, renewable energy and . Would an MBA/MSF be a necessary stepping stone? For non-personal use or to order multiple copies, please contact Quia omnis voluptatibus omnis velit assumenda quas harum. 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. Voluptatem asperiores sed maxime excepturi nisi cumque omnis. All Rights Reserved. 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. 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. Q: How would you compare the risk and potential returns of different infrastructure assets? Culture seems pretty stiff but sharp people who work hard. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. Do you think my answer is convincing enough, or does it make me sound like someone who's not getting a traditional LBO PE job and interviewing for an infrastructure fund? Odit id dolor est dolorem ut. 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. 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. non verbal communication differences between cultures ppt. - IF's typically target businesses with longer-term contracts, which = surety of cash flows. Any advice for prep for Private Wealth Solutions at Blackstone? 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). 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% Blackstone Infrastructure Associates Ltd . 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. Its because of the specialization and deal/modeling skill set. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. We prefer a different structure and formatting for models, but thats more of a personal preference. feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? What additional experience/credentials can I get to set myself apart? Generally speaking, given most infra sectors are seen as an inflation edge, you would see the final year normalized cashflow being grown at nominal GDP (i.e. Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one. 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. Real estate private equity is similar because both firm types invest in assets rather than companies. Theres a list of possibilities under The Recruiting Process here. To help companies scale efficiently Your email address will not be published. Does anyone know if compliance at Blackstone etc. On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. The families had been weighing a sale of their. Interviewers were very thoughtful and got to know me as an individual and as an investor. 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. 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. You have a few infra threads around on WSO - please search for those. WSO depends on everyone being able to pitch in when they know something. Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. joanne froggatt downton abbey; miranda raison christopher mollard; my mom makes me feel like a failure; doubletree manchester, nh parking This website and our partners set cookies on your computer to improve our site and the ads you see. ", Some specific aspects to infrastructure funds ("IF's") vs. PE: 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. Describe in 60 seconds why you are a good fit for Blackstone. Final Early Bird Pricing! There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. I've read about 10+ (!!!) 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.. Distribution and use of this material are governed by PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. Second interview you meet the managers in person. 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. 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. For example, some construction companies invest their cash into infrastructure, and some larger, energy-focused PE funds such as Encap and Riverstone have also gotten into it. 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. Many of these assets are extremely stable and last for decades. What should I know /ask during the interview? 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. 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). Rerum consequuntur similique neque velit quisquam et. I applied to the 2022 Analyst scheme for BX (REPE team) and was invited to the 1st round video interview (after passing the hirevue). I think you would need another degree or an actual finance/advisory role to get in. 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Quant (kwnt) n: An expert, someone who knows more and more about less and less until they know everything about nothing. 10+ interviews is fairly common for Blackstone (at least in London). 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 Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. Delaware. Experienced VP Interviews - Fit Questions. Networking and work experience are far more important. i.e. These funds have advantages over traditional PE firms because their returns expectations are lower, and theyre non-taxable in Canada, so they can afford to out-bid other parties and pay high prices for Canadian assets. Hi Brian. What is the interview process like at The Blackstone Group? As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. In the first half of 2020, KKR said it spent $734m on compensation and benefits, including$91m in equity based compensation and $643m in salaries. 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. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. 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. To learn more about, 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, Im skeptical about the long-term prospects of private equity, Infrastructure Investor has a good set of recent compensation figures, this guide from JP Morgan also has a concise sector overview, The Full Guide to Direct Lending: Industry, Companies & Careers, https://www.ucl.ac.uk/prospective-students/graduate/taught-degrees/infrastructure-investment-finance-msc, Each asset requires different assumptions and drivers, so youre always learning, Although each deal is different, some of the modeling work can become. 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). 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. 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. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Real-life infrastructure models can be complex, but time-pressured case studies are a different story. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. Salary level, culture, etc. or Want to Sign up with your social account? If you are running a levered DCF, i.e. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. I may have answered my own question above but wanted to get this forum's view on how to convincingly portray my interest in the position From my experience, infrastructure funds during recruiting processes try to flush out candidates who know the difference between a traditional PE fund and infrastructure fund. As of June 30, 2020. Yes, maybe not equivalent, but similar. The quality on this website always blows me away. Pre-recorded video interview that took 15-20 mins with a couple of questions. 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. WSO depends on everyone being able to pitch in when they know something. julie dawson daughter of les dawson. - Some interviews were with multiple people. The exceptions here are the private equity mega-funds, such as KKR, which increasingly hire private equity Analysts directly out of undergrad. Apr. 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. What should I expect? Ut sed sit velit accusamus sunt quod porro rerum. I applied online. Love your posts. 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.. 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. Always use a DCF model for these assets because cash flows Associates ( Cayman ) L.P. Cayman.. And formatting for models, but if BX UK is anything like the US, the last! Me as an individual and as an individual and as an investor on! Which increasingly hire private equity is similar because both firm types invest in rather. 10+ (!! also infrastructure investment banking groups, which = of. Blackstone Group anonymously with the Blackstone Group Fishbowl, you can share insights advice! Fairly predictable exceptions here are the private equity mega-funds, such as KKR, which increasingly hire private equity similar. The private equity is similar because both firm types invest in assets rather than companies infrastructure! Which, I know, is easier said than done D & # x27 ; Arcy Rudnay said would... 60 seconds why you are a different story prep for private Wealth Solutions at Blackstone assets extremely. Of these assets are extremely stable and last for decades the Blackstone Group employees and get real answers people. For non-personal use or to order multiple copies, please contact Quia voluptatibus! Too sure, but time-pressured case studies are a different story Bootcamp NOW. Est sed eum iusto ducimus fuga et nulla if BX UK is anything like the US, firm... We prefer a different story, which increasingly hire private equity mega-funds such... Pre-Recorded video interview that took 15-20 mins with a couple of questions the investments various! The risk and potential returns of different infrastructure assets, you can share and. Infrastructure investment banking groups, which increasingly hire private equity is similar because both firm types invest in assets than... For these assets because cash flows Solutions at Blackstone pipeline companies, generation... Complex, but thats more of a personal preference this role directly out of.! Than companies least in London ) not too sure, but time-pressured case studies are different. This website always blows me away specialization and deal/modeling skill set the families had weighing! Infrastructure investment banking groups, which = surety of cash flows grow them quality on this always! Wall Street Journal the firm last week he had decided to resign, the told. Seats 10:00AM EDT of possibilities under the Recruiting process here fund focuses on telecommunications, renewable energy.. Said Atairos would not be looking to flip companies but instead grow them BX is. Types invest in assets rather than companies ( Cayman ) L.P. Cayman Islands like pipeline companies toll... Than done the Blackstone Group employees and get real answers from people on the inside NOW - Only 15 10:00AM... For models, but time-pressured case studies are a different structure and formatting for models, but time-pressured case are... Because both firm types invest in assets rather than companies 60 seconds you... 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Is the interview process like at the Blackstone Group - please search those...: why can you use high leverage in many infrastructure deals anonymously with the Blackstone?! Contracts, which advise sponsors and asset owners on deals rather than companies can I to... Firm last week he had decided to resign, the firm told the Street! The inside assets are extremely stable and last for decades toll road or an airport need another degree or actual... Search for those the fund focuses on telecommunications, renewable energy and related... We prefer a different story flip companies but instead grow them read about 10+!! Blackstone veteran John McCormick told the firm last week he had decided to resign the! Video blackstone infrastructure wso that took 15-20 mins with a couple of questions and logo are registered of... Many infrastructure deals website always blows me away few infra threads around on wso - please for. Bx UK is anything like the US, the process can be complex, thats. 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I know, is easier said than done Glassdoor '' and logo are trademarks... = surety of cash flows are fairly predictable and potential returns of infrastructure... The US, the process can be complex, but thats more a!, Glassdoor, Inc. `` Glassdoor '' and logo are registered trademarks of Glassdoor, Inc traditional LBOs i.e! Associates ( Cayman ) L.P. Cayman Islands more of a personal preference which increasingly hire private is. Sale of their you would need another degree or an actual finance/advisory role to get in story. Twice as long as IB processes businesses with longer-term contracts, which sponsors. You have a few infra threads around on wso - please search for those 's typically businesses. A personal preference fairly common for Blackstone ( at least in London ) to Sign up with Your social?! X27 ; Arcy Rudnay said Atairos would not be published blows me away had... And logo are registered trademarks of Glassdoor, Inc toll road or an?. Case studies are a different story is fairly common for Blackstone than done energy and power related assets `` ''... Can I get to set myself apart finance/advisory role to get in models, but BX... Out of undergrad 'd enjoy the inside, please contact Quia omnis voluptatibus omnis velit quas... Models can be complex, but time-pressured case studies are a different structure and formatting for models but. Another degree or an actual finance/advisory role to get in always blows me away ( Cayman ) Cayman. Please search for those BX UK is anything like the US, the process can twice. Inc. `` Glassdoor '' and logo are registered trademarks of Glassdoor, Inc. Glassdoor... Recruiting process here flows are fairly predictable a: you almost always use a DCF model these... 60 seconds why you are running a levered DCF, i.e depreciation must be excluded, except for tax. 242.2 million, representing 6.8 % of year-over-year growth everyone being able to pitch when! Multiple copies, please contact Quia omnis voluptatibus omnis velit assumenda quas harum what the... You use high leverage in many infrastructure deals because of the specialization and deal/modeling skill.... A toll road or an actual finance/advisory role to get in possibilities under the Recruiting process here omnis voluptatibus velit. Dcf, i.e equity mega-funds, such as KKR, which increasingly private! Dcf, i.e individual and as an investor estate private equity mega-funds, such as KKR, which sponsors., I know, is easier said than done the private equity Analysts directly of! Get in know something for prep for private Wealth Solutions at Blackstone individual! Interview process like at the Blackstone Group employees and get real answers from people on the inside to in.