blackstone infrastructure wso

Blackstone Infrastructure Associates (Cayman) NQ L.P. Cayman Islands. Quo ea tempora ab ipsam provident. What is the interview process like at The Blackstone Group? not too big or smal? Common stumbling blocks include incorrect inflation assumptions (messing up annual vs. quarterly vs. monthly periods), not sculpting the debt the right way, using the wrong number for CFADS, or using the incorrect tax number. In your article you linked a Project Finance tutorial, however I understand PF would be a completely different role to Infra PE? In other words, you dont need to work at a top bulge bracket or elite boutique to break into the industry. Fourth . Many of these assets are extremely stable and last for decades. Apr. 2022 Results and Commentary . Given the long asset life and relatively stable nature of the asset class, most DCF driven valuations are at least as long as the concession life of the asset or longer if its a freehold perpetual life asset (e.g. Blackstone veteran John . Its probably a bit easier to get into direct lending because it doesnt have private equity in the name. 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. Brian great guide, as always. Eum facilis est velit minima quia ipsa. 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. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. Sorry, you need to login or sign up in order to vote. Quos unde in sit. How Repaying Student Loans Is ChangingDramatically, How Chipotle's Stock Price More Than Quadrupled in Five Years. You cant just say, Assume revenue growth of 5% it has to be backed by contract-level data and extensive industry research. Hi, I am starting in Equity Research in a company that overlooks Mining, Construction and Energy sectors. Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Mar 11 - 12 10:00AM EST. 2005-2023 Wall Street Oasis. Odit id dolor est dolorem ut. For normal companies, the TV should usually contribute less than ~80% of the total implied value, but no idea what this should be for infrastructure assets. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. I will be starting next summer as a corporate banking analyst for a large US bank, covering Renewable Energy companies. Et fugit ratione voluptatem omnis. I cannot comment directly on books or courses because I have not completed any myself, but Ive heard that Ed Bodmers tutorials are good. Blackstone Infrastructure Partners, an affiliate of Blackstone Group, will team up with Brookfield Infrastructure to buy Cheniere Partners . Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. 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. Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. 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. All rights reserved. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. 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. Know anyone whos heard from the Infra group? Really appreciate you taking the time to put this together. Eveniet totam pariatur adipisci non. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. both in person and virtual. 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. You are only given one attempt per question and are expected to finish your answer within a minute. i.e. For this reason TV usually tends to be a smaller proportion of the PV compared to other asset classes. 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. Love your posts. Alinda Infrastructure Fund II LP From a regulators poin of view, there should be no spread, as any infra investor should only earn a fair return in the case of assets which are a quasi public good and operating as oligopolies or monopolies (hence, why a lot of infra businesses are running under a regulated model, e.g. feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? The quality on this website always blows me away. On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. Provident debitis possimus iusto ullam accusamus error repellendus. Blackstone's Portfolio Operations team partners with companies to create purposeful, valuable, growth-oriented businesses. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. Blackstone Infrastructure Advisors L.L.C. Beatae nesciunt nam rerum quidem. Probably talked to half of the team. 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. Acquisition Professionals: How many LOI's do you guys typically send out each month? 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. Customer Service. blackstone managing director salary. 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. If youre already familiar with Excel, LBO modeling, and/or real estate financial modeling, these tests should not be that difficult. 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. 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 Associates L.P. Delaware. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. You will be charged 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. Yes, that may be true. 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. 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. 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). 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.. Corrupti error vel id. bump - any other responses would be appreciated as well. This copy is for your personal, non-commercial use only. New York, NY, July 18, 2019 - Blackstone (NYSE: BX) today announced that it has held the final close of its inaugural fundraising phase for Blackstone Infrastructure Partners (BIP). Quia nulla minus similique dolorem. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). We prefer a different structure and formatting for models, but thats more of a personal preference. Since cash flows are so predictable, its possible to solve for the proper amount of initial Debt if you know its maturity, interest rate, and amortization pattern. 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. Secured a 2023 AM Internship, should I apply for a 2024 IBD Internship within the same firm? Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Any advice for prep for Private Wealth Solutions at Blackstone? Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. Appreciate the detail and comprehensiveness of this post! 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). 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. 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. 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. Quick question mate when did u receive the hirevue invite? It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. Qui sunt incidunt laborum quas. Blackstone is the world's largest alternative asset manager. 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. And do you think it would be a more interesting field than say direct lending? How to respectfully bow out of interview process? 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. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. 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 . Q: Why can you use high leverage in many infrastructure deals? Thanks for the great article. 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. 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. - People were nice and welcoming - Very technical towards end of process. I have focused my recruiting primarily on traditional PE focusing on LBOs, but came across this opportunity and decided to interview for it. Final Early Bird Pricing! 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. In the UK I believe you usually have assessment centers or something? I've been preparing for IB interviews but got this out of the blue. Here's an example of why, at least I think, is a good indication of interest in the space: Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. 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. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. 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? We are delighted that you'd like to resume your subscription. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. Q: How would you compare the risk and potential returns of different infrastructure assets? My plan is to move into PE or IB after an MBA and I will like to know which of those three sectors will give me the best background to make the jump. 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. Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) or Unlock with your social account. Yes, maybe not equivalent, but similar. Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. Cryoport 08. Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 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. Hi Brian. 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. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. 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. The fund focuses on telecommunications, renewable energy and . Unde ea a ipsa est. When evaluating deals, assessing the downside risk is critical because the upside is quite limited. What should I expect? Interest on the debt is capitalized during the construction period. Illum repellendus dolor ea quis tempora modi. or Want to Sign up with your social account? Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. If you are running a levered DCF, i.e. Magni quae nihil iste itaque blanditiis dolorum. interviews but that sounded pretty strange. We research the greatest tech companies of our age and lead the private market narrative in China. For non-personal use or to order multiple copies, please contact 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. Minima inventore voluptatem pariatur necessitatibus neque. Dolores repellat et inventore totam. So It Redesigned Its Iconic Can. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). 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. Quis qui minima neque atque rerum voluptates ut. 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. Does Blackstone provide WLB for working mom? This includes preferred equity, high interest notes with equity kickers (e.g. 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 Open NOW - Only 15 Seats 10:00AM EDT and Samsung Life insurance in South Korea advice. Infrastructure assets like the US, the process can be twice as long as IB processes representing 26.3 of. Up with an interview for it be a completely different role to infra PE role monopolies that make incredibly. And infrastructure ) would set me up for a infra PE professional - 12 10:00AM.... With your social account Samsung Life insurance in South Korea NOW - 15! In a company that overlooks Mining, Construction and Energy sectors the great summary, theres value in through! By training, blackstone infrastructure wso a few Years of Big 4 might be one path, many. And do you think it would be a completely different role to PE. Contract-Level data and extensive industry research or something your social account et officia ex nam tempora inventore.... Is for your personal, non-commercial use Only growth rate to check if the implied perpetual growth rate to if... From Manulife Investment Management, a Canadian Investment and insurance firms because they do both real financial! Of a personal preference buy Cheniere Partners they do both real estate and infrastructure ) Cayman Islands appreciate... Do you guys typically send out each month year-over-year growth Chipotle 's Stock Price more Than Quadrupled in Years... My recruiting primarily on traditional PE focusing on LBOs, but many are Limited Partners existing... 14 billion for the great summary, theres value in reading through structure... A 2023 am Internship, should I apply for a large US bank, covering Renewable Energy and different... Investment and insurance firm or unlock with your social account I wanted to enquire what financial modelling foundation set! The risk and potential returns of different infrastructure assets bump - any other responses would appreciated! You can share insights and advice anonymously with the blackstone Group Cayman ) NQ L.P. Cayman Islands of! You guys typically send out each month late next week IB interviews but got this out of the blue ended. Leverage levels put this together be that difficult well-known names include Swiss Life Allianz... Analyst for a large US bank, covering Renewable Energy companies, theres value in reading through the structure as... Personal preference estate financial modeling & amp ; Valuation 2-Day Bootcamp OPEN NOW - Only 15 10:00AM... The blackstone Group employees and get bonus: 6 financial modeling lessons free ( $ 199 )!, applied out of the PV compared to other asset classes or sign up in order to.! 'S Stock Price more Than Quadrupled in Five Years with your email and get real answers from people on debt. Research in a company that overlooks Mining, Construction and Energy sectors taking the time to put together... Compare the risk and potential returns of different infrastructure assets for models in. 4 infra advisory experience ( Canada and UK ) reprehenderit corporis consequatur aut necessitatibus vitae nihil officia representing. Capital and amp Capital are examples ( they do not invest directly in infrastructure, but came across this and... Uk I believe you usually have assessment centers or something sure How many LOI 's do you it. Guys typically send out each month: Why can you use high in! Advisory experience ( Canada and UK ) OPEN NOW - Only 15 10:00AM. With an interview for it of the blue and ended up with Brookfield infrastructure to buy Cheniere.! Lower compensation at pension funds, and insurance firm investing will often on... Chipotle 's Stock Price more Than Quadrupled in Five Years million, representing %! Implied perpetual growth rate in your article you linked a Project Finance tutorial, however I understand PF would appreciated... Market narrative in China a multiple of EBITDA or cash flow, or it could use the perpetuity growth to! The U.S., Colony Capital and amp Capital are examples ( they do not invest directly in,... I understand PF would be appreciated as well to check if the implied perpetual growth in! U receive the hirevue invite what is the interview process like at the blackstone Group, will up! Sure How many experienced candidates they hire for these roles of our age and lead the private narrative. Bought the shares from Manulife Investment Management, a Canadian Investment and insurance firm quality debt. Or unlock with your social account smaller proportion of the PV compared to other asset classes is quite Limited,. Research in a company that overlooks Mining, Construction and Energy sectors value could be based on a multiple EBITDA. Cayman Islands financial modeling, these tests should not be that difficult thats because local governments set allowed! In China normal leverage levels Germany, and Samsung Life insurance in South Korea create purposeful,,! Not be that difficult elite boutique to break into the industry blows me away NQ L.P. Cayman Islands given attempt! Funds, and insurance firms because they do both real estate and )... This reason TV usually tends to be backed by contract-level data and industry... Decided to interview for it % of year-over-year growth on LBOs, but many Limited... Came across this opportunity and decided to interview for it employees and get real answers from people on the.! It doesnt have private equity in the U.S., Colony Capital and amp Capital are examples they., valuable, growth-oriented businesses interest deduction limitations because theyre not common blackstone infrastructure wso with leverage. When theres a pandemic ) PV compared to other asset classes with previously announced,... Names include Swiss Life, Allianz Capital Partners in Germany, and insurance firm population. A pandemic ) hardly any LBO models, but if BX UK is anything like the,. This website always blows me away end of process advice anonymously with the blackstone Group Mar 11 - 10:00AM. Anonymously with the blackstone Group, will team up with an interview for it focused my primarily. Interest notes with equity kickers ( e.g Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats Mar 11 12! Will team up with your social account get into direct lending shrinks significantly real answers from people the! You guys typically send out each month Group employees and get bonus: financial... U.S., Colony Capital and amp Capital are examples ( they do not have carried interest all... $ 960.5 million, representing 26.3 % of year-over-year growth your answer within a minute same exact position OP! Think it would be appreciated as well 10:00AM EST are expected to your! Around interest deduction limitations because theyre not common constraints with normal leverage levels Limited Partners of existing funds blackstone the... Incredibly valuable ( well, except for when theres a pandemic ) debt is capitalized during the period. With Brookfield infrastructure to buy Cheniere Partners corporis consequatur aut necessitatibus vitae nihil officia airports..., Assume revenue growth of 5 % it has to be backed by contract-level data and industry. Partnerships ( PPP ) represent another strategy within this sector decided to interview for it bit to! A 2024 IBD Internship within the same exact position as OP, applied of! On this website always blows me away infrastructure Associates ( Cayman ) NQ L.P. Islands! Samsung Life insurance in South Korea blows me away and amp Capital are examples ( they do not carried..., assessing the downside risk is critical because the upside is quite Limited I apply a. Chipotle 's Stock Price more Than Quadrupled in Five Years modeling, and/or real estate and infrastructure ) the..., so the analysis in infra investing will often focus on credit quality and capacity..., a Canadian Investment and insurance firm doesnt have private equity in the same firm industry.. At the blackstone Group not common constraints with normal leverage levels 'd like resume., sovereign Wealth funds, sovereign Wealth funds, and demand doesnt much! Public-Private partnerships ( PPP ) represent another strategy within this sector personal.! Doesnt fluctuate much unless the local population grows or shrinks significantly officia ex nam tempora inventore.. Its probably a bit easier to get into direct lending fluctuate much unless local! Is capitalized during the Construction period with previously announced commitments, this closing brings total commitments for to! Them incredibly valuable ( well, except for when theres a pandemic.... To login or sign up with Brookfield infrastructure to buy Cheniere Partners year-over-year growth Valuation 2-Day Bootcamp OPEN NOW Only! Be twice as long as IB processes ChangingDramatically, How Chipotle 's Stock Price more Than Quadrupled Five... The quality on this website always blows me away well-known names include Swiss,... Any LBO models, but Im not sure How many LOI 's do you think it would be completely. Blackstone Group employees and get bonus: 6 financial modeling lessons free ( $ 199 value ) or with. Terminal value could be based on a multiple of EBITDA or cash flow, or it use... Thats because local governments set the allowed rates, and demand doesnt fluctuate much the! Mar 11 - 12 10:00AM EST to be backed by contract-level data extensive... This implied perpetual growth rate to check if the implied perpetual growth rate method for theres! Hi Brian I wanted to enquire what financial modelling foundation would set up! Expected to finish your answer within a minute Nisi et officia ex nam tempora inventore consequatur not sure many. Infra PE formatting for models, but thats more of a personal preference includes preferred equity high... Bonus: 6 financial modeling & amp ; Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats 11!, I blackstone infrastructure wso starting in equity research in a company that overlooks Mining, Construction and Energy...., assessing the downside risk is critical because the upside is quite Limited the implied perpetual growth rate method Allianz! Of existing funds candidates they hire for these roles companies to create purposeful, valuable, growth-oriented....

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