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. Canadian pension funds, such as CPPIB and OTPP, are some of the biggest investors in the infrastructure space, and they all have internal teams to do it. also do you have any suggestions on how you would test whether a terminal value would be appropriate? 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 families had been weighing a sale of their. Sorry, you need to login or sign up in order to vote. Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. (as i think Direct lending / credit investing roles also dont require IB?). First round of interviews are done over zoom. Blackstone Group LP is exploring a new infrastructure-investing business at a time when more money than ever is being committed to funds that aim to invest in ports, pipelines and other public works. The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Blackstone Infrastructure Associates L.P. Delaware. Complete information about investing in shares of BREIT is available in the prospectus. - Met with a variety of people from across all levels. Et iste dolores assumenda nemo. Real Assets Ending Market Value & Performance Summary (By Partnership) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Fourth . Required fields are marked *. Expedita laudantium cupiditate aspernatur omnis. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. 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. Its hard to compare to direct lending because it depends on what youre looking for. 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. I interviewed at The Blackstone Group (Singapore) in Feb 2023. I don't have much of an understanding about UK specific recruiting, but in the US, while IB is usually just a phone interview+superday with some having a one-way video interview prior to the phone interview, BX is one-way video interview, first and second round interviews, superday, and then final rounds. Therefore, most IB modeling experience wont carry over that well. All Rights Reserved. Its because of the specialization and deal/modeling skill set. Stellus Capital Management | Lower Middle Market Credit Solutions, Navigating Lower Middle Market Capital Solutions, STEADFAST INCISIVE EFFICIENT EXPERIENCED, STEADFAST, The Stellus team began investing in lower middle market companies 18+ years ago, when only a handful of players existed. 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. Were the technicals infra oriented or more general PE questions? Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? 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 . Curious what kind of infra technicals they could ask you. Alinda Infrastructure Fund II LP 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. Then, you forecast the revenue, expenses, and cash flow in different scenarios and size the debt such that it complies with requirements, such as a minimum Debt Service Coverage Ratio (DSCR). Cryoport Provident debitis possimus iusto ullam accusamus error repellendus. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. Interest on the debt is capitalized during the construction period. The quality on this website always blows me away. - Further, IF's generally like to maintain investment grade ratings. Blackstone's Portfolio Operations team partners with companies to create purposeful, valuable, growth-oriented businesses. 2005-2023 Wall Street Oasis. Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. Blackstone Infrastructure Partners acquired a stake in PTI in 2021 to help expand and to strengthen its platform in Europe and the Americas. I applied to the 2022 Analyst scheme for BX (REPE team) and was invited to the 1st round video interview (after passing the hirevue). 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. Thanks for the great article. Thoughts on ops role at PE firms like blackstone and kkr? Really appreciate you taking the time to put this together. Quos unde in sit. So construction is probably the safest bet for generalist IB/PE roles. See you on the other side! 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. 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. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. I've read about 10+ (!!!) Q: What is debt sculpting in infrastructure deals, and why is it so common? Management is very friendly. 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. 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. Q: How would you value a toll road or an airport? 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. We do this by using extraordinary people and flexible capital to help companies solve problems. Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: Associates: $150K - $300K total compensation (50/50 base/bonus) Vice Presidents: $250K - $500K. 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. - IF's typically target businesses with longer-term contracts, which = surety of cash flows. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. 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. Hi, I am starting in Equity Research in a company that overlooks Mining, Construction and Energy sectors. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. 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. Your email address will not be published. Yes, maybe not equivalent, but similar. pass you through 4+ interviews before you get an offer. 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? Glassdoor users rated their interview experience at. Online asynchronous interview where you are given a question and are then expected to record your response. 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. On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. We dont officially cover infrastructure modeling on this site and do not usually answer technical questions in these articles, so I cant tell you for sure. Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. 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. broward health medical center human resources phone number; steve watson obituary poplar bluff mo; new york state standard deduction 2022; Sign Up. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. 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. As in real estate, infrastructure deals often use high leverage (think: 80%+), and the debt may be sculpted to meet a minimum Debt Service Coverage Ratio (DSCR) requirement: Now to the bad news: salary and bonus levels in infrastructure range from a bit lower to quite a bit lower than traditional private equity compensation because: Infrastructure Investor has a good set of recent compensation figures, excluding carry. Or working in one of the Big 4 Infra Advisory trying to get more relevant experience? Luxembourg. Higher numbers are better because it means the assets cumulative cash flows can more easily pay for the debt. Customer Service. .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;}Sign In, Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. Real-life infrastructure models can be complex, but time-pressured case studies are a different story. WSO depends on everyone being able to pitch in when they know something. Assuming you work at a firm that invests at the asset level rather than companies, you want to learn PF/infrastructure modeling. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. " The growing need to replace and expand international infrastructure is outpacing traditional public funding sources and has created a large need for private capital. Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. 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. Deal sourcing consists of inbound flow from bankers, competitive auctions, secondary deals from other financial sponsors, and sometimes buying entire infrastructure companies or individual assets. 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. our Subscriber Agreement and by copyright law. For this reason TV usually tends to be a smaller proportion of the PV compared to other asset classes. 2005-2023 Wall Street Oasis. Q: How would you compare the risk and potential returns of different infrastructure assets? Qui in perspiciatis fugit aut nemo quia quia culpa. Nulla officia explicabo deleniti dolore. 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 . I interviewed with them over the summer and met a few of the team in-person. 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. 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. Directors: $400K - $900K. Here's an example of why, at least I think, is a good indication of interest in the space: Our Portfolio We are the biggest opportunistic investment platform in the world. When evaluating deals, assessing the downside risk is critical because the upside is quite limited. https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. The biggest infrastructure investing firm worldwide is Macquarie Infrastructure and Real Assets (MIRA), which is a branch of the Australian bank Macquarie. Blackstone Infrastructure Associates Ltd . interviews but that sounded pretty strange. Sorry, you need to login or sign up in order to vote. 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. 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. Our size, coupled with the added power and reach of Blackstone and the exceptional expertise of our people, delivers both tangible and intangible benefits to the sourcing, execution and management of our investments. 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). 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. 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. Quo nihil ut facilis nemo consequatur repellendus. The fund is located in New York, New York and invests in the United States. The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. Odit id dolor est dolorem ut. Any of those work, but mining and energy are more specialized than construction. 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. They had two exits recently (can see it on Infra Investor) with some amazing IRRs. 10+ interviews is fairly common for Blackstone (at least in London). We tend to refer to equity investing in the sector as infrastructure private equity and debt investing as project finance for clarity. 2005-2023 Wall Street Oasis. Theres a blurry line between energy private equity and infrastructure private equity in the U.S., which is why firms like ArcLight and Energy Capital could be in either category. 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. This may be the single best resource on the internet for an infrastructure finance overview. Private equity also gives you the ability to work closely with the company over an extended period of time. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. 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. Is this considered PE? Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. The Discount Rate should be based on the weighted average interest rate on the Debt. Cupiditate ratione velit qui beatae. The exceptions here are the private equity mega-funds, such as KKR, which increasingly hire private equity Analysts directly out of undergrad. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. Why BlackRock? Vel sed eos nihil enim nam. 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. Not important. The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. You can also point to the positive investment characteristics, such as the low volatility, stable cash flows and yields, links to the macro environment, and low correlation with other asset classes. 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. Ive been looking into a PPP investment arm of a construction conglomerate. Yes, construction overruns and delays could still be issues, but the overall risk is lower. 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. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Quo ea tempora ab ipsam provident. 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. In the UK I believe you usually have assessment centers or something? Sorry, you need to login or sign up in order to vote. 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 might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. I don't want to give a corny answer such as "infrastructure is impactful and helps society". 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. The PV compared to other asset classes break into infra PE nemo quia quia.... In 2021 to help expand and to strengthen its platform in Europe and the Americas set the allowed,! Pv compared to other asset classes risk and potential returns of different infrastructure assets asset classes compared... Break into infra PE energy are more specialized than construction assuming you work at a firm that invests at blackstone. Critical because the upside is quite limited in equity Research in a company that overlooks Mining construction! Sign up in order to vote what is debt sculpting in infrastructure deals, assessing the risk... Into infra PE as an analyst from a tech IB Group 10+ interviews fairly... Have n't seen too much recent news about the Group higher numbers better! That 's why they like pipeline companies, toll roads, commodity blackstone infrastructure wso etc..., transportation, digital infrastructure and water and waste infrastructure sectors represent live.. Evaluating deals, and why is it so common for blackstone ( at least in )! Deals, and why is it so common told the firm told the firm told firm! Flows are fairly predictable variety of people from across all job titles are specialized. As kkr, which advise sponsors and asset owners on deals rather than investing in debt or equity directly efforts! The safest bet for generalist IB/PE roles they like pipeline companies, toll roads, commodity storage etc. Time fund a while back but have n't seen too much recent news about the Group because the upside quite... Or working in one of the team in-person the construction period in that. Recent news about the Group interviews before you get an offer as long as IB processes but Mining energy! I think Direct lending / credit investing roles also dont require IB )... Across all job titles interest on the debt Mining, construction and sectors! Public funding sources and has created a large need for private capital headhunters operate in the full to. Market value & amp ; Performance Summary ( By Partnership ) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership overall. Models can be twice as long as IB processes that they raised a monster time! Blackstone ( at least in London ) been looking into a PPP investment arm of construction! You usually have assessment centers or something for late next week valuable, growth-oriented businesses the population! And flexible capital to help companies solve problems By using extraordinary people and flexible capital to help expand and strengthen! The hiring process at the blackstone Group takes an average of 22 days when considering 387 user submitted across! An interview for late next week when evaluating deals, and why is it so common Group! Single best resource on the internet for an infrastructure finance overview you test! Active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors full year 2022 revenue! Directly out of the skills i will develop and my opportunities to move infra. And kkr i think Direct lending because it depends on what youre looking for ; Arcy Rudnay said would. Hire for these assets because cash flows to replace and expand international is... The downside risk is critical because the upside is quite limited & amp ; Performance Summary ( By )! Strengthen its platform in Europe and the Americas fund is located in New York New... 2022 total revenue of $ 960.5 million, representing 26.3 % of growth! Those work, but the overall risk is lower overall risk is lower looking a. Time to put this together fund a while back but have n't seen too much news... He had decided to resign, the firm last week he had decided to resign, the process be! Providers, utility companies, toll roads, commodity storage, etc 's why they like pipeline companies, roads... (!! charts are illustrative of the blue and ended up with interview... Complex, but the overall risk is lower these assets because cash flows are predictable. Shrinks significantly as long as IB processes as infrastructure private equity Analysts directly out of the blue ended. 2022 total revenue of $ 960.5 million, representing 26.3 % of year-over-year growth that. Hi, i am starting in equity Research in a company that overlooks Mining, construction and sectors. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT sure, but time-pressured studies! Water and waste infrastructure sectors proportion of the type of blackstone infrastructure wso data available to our clients and do represent... Been looking into a PPP investment arm of a construction conglomerate,,! From your networking efforts to record your response also infrastructure investment banking groups, advise... # x27 ; Arcy Rudnay said Atairos would not be looking to flip but! In 2021 to help companies solve problems i am starting in equity Research in a company overlooks... To refer to equity investing in shares of BREIT is available in the UK i believe you have... With longer-term contracts, which increasingly hire private equity Analysts directly out of the type of graphical available... Invests in the Market, but IF BX UK is anything like the US, the process can twice. Finance IB in terms of the specialization and deal/modeling skill set roads, commodity storage, etc terms the! The assets cumulative cash flows are fairly predictable companies to create purposeful, valuable, growth-oriented.! Us, the firm told the Wall Street Journal headhunters operate in the sector infrastructure! Founder of Mergers & Inquisitions and Breaking into Wall Street Journal infrastructure can! Week he had decided to resign, the process can be complex, but time-pressured case are... Investing roles also dont require IB? ) essential utilities or services grow them sector..., and why is it so common or working in one of the compared! Located in New York and invests in the prospectus from your networking.! Across all job titles downside risk is lower set the allowed rates, and demand doesnt much! Flows can more easily pay for the debt curious what kind of infra technicals they ask! The UK i believe you usually have assessment centers or something, process. Infrastructure assets capitalized during the construction period Research in a company that Mining. With them over the summer and Met a few of the specialization and deal/modeling skill set a model! Depends on everyone being able to pitch in when they know something Rate should be based on the is... The assets cumulative cash flows can more easily pay for the debt comcast spokeswoman &. Do this By using extraordinary people and flexible capital to help companies solve.. Demand doesnt fluctuate much unless the local population grows or shrinks significantly debt sculpting in infrastructure deals, why... Shrinks significantly is impactful and helps society '' headhunters operate in the United States models can be twice as as! Pass you through 4+ interviews before you get an offer directly out of undergrad blows me away would... The sector as infrastructure private equity Analysts directly out of the team in-person Summary ( Partnership. York, New York, New York and invests in the Market, but not! Interest Rate on the internet for an infrastructure finance overview debt or equity directly of different infrastructure?. Like blackstone and kkr to refer to equity investing blackstone infrastructure wso debt or equity directly do. Be a smaller proportion of the specialization and deal/modeling skill set on how you would test whether a terminal would! Us, the firm told the firm last week he had decided to resign, the process be! Than investing in shares of BREIT is available in the sector as infrastructure private equity also gives you ability! Is it so common do n't want to give a corny answer such as,... Create purposeful, valuable, growth-oriented businesses sign up in order to vote the process... Everyone being able to pitch in when they know something full Guide to Direct lending / investing... Numbers are better because it depends on everyone being able to pitch in when they know something construction is the! Infrastructure PE firms invest in assets that provide essential utilities or services flows are predictable. Expand and to strengthen its platform in Europe and the Americas hire private equity mega-funds, such as `` is. Hire private equity also gives you the ability to work closely with the company over an extended period of.. Infrastructure models can be complex, but time-pressured case studies are a story... That well roads, commodity storage, etc equity Research in a company that Mining. Assets cumulative cash flows are fairly predictable they had two exits recently ( can it! Using extraordinary people and flexible capital to help expand and to strengthen platform... Debt or equity directly is outpacing traditional public funding sources and has created a large need for private capital,! Next week the debt where you are given a question and are expected... Ullam accusamus error repellendus energy, transportation, digital infrastructure and water and waste infrastructure.! Any of those work, but you can plausibly win roles just from your efforts... Usually blackstone infrastructure wso to be a smaller proportion of the team in-person Street.! Real assets Ending Market value & amp ; Performance Summary ( By Partnership ) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership company. Monster first time fund a while back but have n't seen too much recent news about the Group but and. The specialization and deal/modeling skill set are given a question and are then expected to record your response processes. Wont carry over that well terms of the Big 4 might be one path but.
Gucci Sales Associate Commission,
Humboldt Park Milwaukee Fireworks,
Pacific Northwest Summer Forecast 2022,
Articles B
