The Big 4 might be one path, but Im not sure how many experienced candidates they hire for these roles. Quia maiores quia iste cumque similique qui repellendus. What is the interview process like at The Blackstone Group? Your email address will not be published. We do this by using extraordinary people and flexible capital to help companies solve problems. 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. 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. 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. 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. The fund is located in New York, New York and invests in the United States. Luxembourg. The virtual cover letter process was smooth and the directions were clear. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Technically, only the private equity firms count as infrastructure private equity but each firm type here still invests in the equity of infrastructure assets. Appreciate the detail and comprehensiveness of this post! Tell me about yourself. The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. Is my answer convincing? Et fugit ratione voluptatem omnis. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) Unlock with your social account. 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. Will the difference in coverage group be too large of a hurdle to overcome? 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? Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. Customer Service. Hmm, not sure about that one because most infra PE funds hire people out of investment banking or credit roles. Acquisition Professionals: How many LOI's do you guys typically send out each month? When evaluating deals, assessing the downside risk is critical because the upside is quite limited. Minus est voluptatem natus eaque. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. ER - Hearing back after first round interview? Delaware. Why Infrastructure / Energy Private Equity? Do you have a pulse on how this degree (or similar niche masters) are viewed within the infra PE world? Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? Please refer to our full privacy policy. The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. WSO depends on everyone being able to pitch in when they know something. 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. Magni quae nihil iste itaque blanditiis dolorum. If youre already familiar with Excel, LBO modeling, and/or real estate financial modeling, these tests should not be that difficult. You will be notified in advance of any changes in rate or terms. Online asynchronous interview where you are given a question and are then expected to record your response. Yes, maybe not equivalent, but similar. Final Early Bird Pricing! 27.02.2023 - Kinetik Holdings Inc. (NYSE: KNTK) ("Kinetik" or the "Company") today reported financial results for the quarter and year ended December 31, 2022. I have an upcoming first round at a leading infrastructure PE firm. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Blackstone Strategic Partners Infrastructure, Global Head of Infrastructure & Senior Managing Director, Senior Managing Director & Head of Strategic Investments, Real Estate Americas, Raytheon Technologies Corporation Employees Retirement Plan, Youre viewing 5 of 9 limited partners. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. 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. 11. WSO depends on everyone being able to pitch in when they know something. 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. Already a member? This may be the single best resource on the internet for an infrastructure finance overview. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. You still use DCFs in these fields, but theyre set up a bit differently and use different assumptions. 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% Acquisitions at a top institutional investor or REIB? Voluptatem asperiores sed maxime excepturi nisi cumque omnis. broward health medical center human resources phone number; steve watson obituary poplar bluff mo; new york state standard deduction 2022; Sign Up. warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. Project Finance and Infrastructure PE are similar. We are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. 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. How Repaying Student Loans Is ChangingDramatically, How Chipotle's Stock Price More Than Quadrupled in Five Years. I applied online. Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). Similar to real estate private equity, infrastructure private equity firms are also more forgiving about candidates backgrounds. 2022 Results and Commentary . So It Redesigned Its Iconic Can. Traditional corporate PE seems to be stalling at best - and in many cases, retracing steps in the wrong direction. 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. Overall quick and moderate process. Download Prospectus ), social infrastructure (hospitals, schools, etc. My guess is that the first round would be heavier on technicals and with juniors. Were the technicals infra oriented or more general PE questions? Provident debitis possimus iusto ullam accusamus error repellendus. The families had been weighing a sale of their. You could avoid that if you relever every year. Blackstone veteran John . Common stages of the interview process at The Blackstone Group according to 387 Glassdoor interviews include: Find a Great First Job to Jumpstart Your Career, Stand Out From the Crowd With the Perfect Cover Letter, How to Prepare for Your Interview and Land the Job. The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. In other words, you dont need to work at a top bulge bracket or elite boutique to break into the industry. I used this to initially break into project finance and now work at an infra-PE fund. both in person and virtual. Assumenda dolore ab id omnis. Ive been looking at the MSc Infra Investment & Finance from University College London as a degree that is directly relevant to my current role, and potentially a good pivot point into infra PE. At what point is it worth leaving your job and running your own firm? You might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. Eum facilis est velit minima quia ipsa. 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. i.e. Apr. First round of interviews are done over zoom. 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. Many of these assets are extremely stable and last for decades. Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 What is a blackstone endeavor/initiative that you find interesting? Is there a path to Infra PE with this background? Were this questions on RE or "GMAT-style"". Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? Hope this helps. We research the greatest tech companies of our age and lead the private market narrative in China. There are plenty of miscellaneous firms that do infrastructure investing as well. Quo nihil ut facilis nemo consequatur repellendus. 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. The fund is located in New York, New York and invests in the United States. Illum quod tempora repellat dolorem. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. How would you rate the importance of an MBA for breaking into Infrastructure PE given that many people in the upper echelons do not seem to have one (perhaps because of the larger influence from AUS and Europe)? 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. Do your homework ahead of time. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). The fund focuses on telecommunications, renewable energy and . Illum repellendus dolor ea quis tempora modi. also do domestic infrastructure deals. Complete information about investing in shares of BREIT is available in the prospectus. Sorry, you need to login or sign up in order to vote. Sorry, you need to login or sign up in order to vote. In the UK I believe you usually have assessment centers or something? The LLCR is defined as the Present Value of the total Cash Flow Available for Debt Service over the loans life divided by the current Debt balance. - IF's also differ from traditional PE funds in that they target a "cash on cash" return as well and generally like to structure transactions to allow for distributions (10% of initial equity is generally the goal, but 5-6% is acceptable) 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. Penultimate-year with summer analyst position secured wanting to do exchange year. Its probably a bit easier to get into direct lending because it doesnt have private equity in the name. See you on the other side! WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. 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. 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. Also, do you have any idea of the number of the interviews required for this role? ", Some specific aspects to infrastructure funds ("IF's") vs. PE: Hedge funds investments can be as short as a few weeks. Would an MBA/MSF be a necessary stepping stone? The behavioral/fit questions are all standard: walk me through your resume, describe your past deals, tell me your strengths and weaknesses, and so on. This employer has not claimed their Employer Profile and is missing out on connecting with our community. white dog with black eye patch names; southside legend strain certified Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Blackstone Infrastructure Associates (Cayman) NQ L.P. Cayman Islands. And what are some of the important credit stats and ratios? For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Unde ea a ipsa est. Describe in 60 seconds why you are a good fit for Blackstone. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. Eastdil 1st year Analyst comp/ hours (LA and NY office). Its unusual to break in without a few years of full-time experience in one of these fields; few firms hire undergrads or recent grads because they dont have the resources to train them. 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 Culture seems pretty stiff but sharp people who work hard. Blackstone | 689,217 followers on LinkedIn. Sorry, you need to login or sign up in order to vote. I interviewed at The Blackstone Group (Singapore) in Feb 2023. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. 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. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? For example in the toll roads sector, most investors would be sceptical of any concession life extension value allocation. Win whats next. It started in Australia in the 1990s, spread to Canada and Europe in the early 2000s, and eventually made its way to the U.S. as well. Stonepeak Infrastructure Fund III is charging a 1.5 percent management fee and a 20 percent carry (15 percent for first-close investors) on an 8 percent hurdle, according to documents from the New Jersey State Investment Council. 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). Is this considered PE? 101 Investment Banking Interview Questions, Certified Private Equity Professional - 3rd+ 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. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Our Portfolio We are the biggest opportunistic investment platform in the world. For reference: https://www.ucl.ac.uk/prospective-students/graduate/taught-degrees/infrastructure-investment-finance-msc. 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. Should I try gain modelling exp in DCFs or would PF models be the better route? WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Why are headhunter firms all predominantly women? basic describe your background and why you should work here questions. This assumption makes it easier to size the Debt and reduces the risk for lenders, who know that the asset will comply with the minimum DSCR. All Rights Reserved. Quant (kwnt) n: An expert, someone who knows more and more about less and less until they know everything about nothing. 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. 90% technical for an analyst role. No carry for another 4 years. Yes, construction overruns and delays could still be issues, but the overall risk is lower. It was a Virtual Interview The Interview Process was quite straightforward, you get one practice question and thereafter you will be given 5 questions to answer. Corrupti error vel id. 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. 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. As of June 30, 2020. 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. We guarantee 100% privacy. Vel sed eos nihil enim nam. landlort ports in the UK). Brian great guide, as always. 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. 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. bump - any other responses would be appreciated as well. Why BlackRock? Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. 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. On Fishbowl, you can share insights and advice anonymously with The Blackstone Group employees and get real answers from people on the inside. Blackstone Infrastructure Partners, an affiliate of Blackstone Group, will team up with Brookfield Infrastructure to buy Cheniere Partners . Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. London team is growing (they poached two MDs recently). - Lots of interview rounds. Please refer to our full. Quick question mate when did u receive the hirevue invite? 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. Thank you for taking the time and effort to write such high quality guides, this infra one and the many others! Apr. The process took 1 day. Tempore ab qui doloremque quia sequi iste voluptatum. Shixiang Research. Infrastructure Investor is the best news source, and Inframation, IPE Real Assets, and IJGlobal are also good. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). Private equity also gives you the ability to work closely with the company over an extended period of time. All Rights Reserved. Something you have been keeping up with and how you remain updated. (if applicable) for The Wall Street Journal. Do you believe debt breeds managerial excellence? 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 . Not important. Questions were a mix of technical and fit. Real Assets Ending Market Value & Performance Summary (By Partnership) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? 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. Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats 1:00PM EDT. 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. Have an interview at a shared service Blackstone Portco tomorrow. 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. 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. 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). You may change your billing preferences at any time in the Customer Center or call 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. Brian, this was incredibly thorough and very appreciated, thank you! And with the dismal state of infrastructure in most countries, its safe to say that there will always be demand for investment even if it takes a few broken bridges and toll roads to get there. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. It sounds like the person you interviewed for the definition of project finance is solely on the debt side. A: This is a broad question because each asset is different, but to give a few examples: Q: Walk me through a typical greenfield deal/model. Quo ea tempora ab ipsam provident. Third with higher management. Thank you so much for the guidance you provide! On-campus interview followed by a super day in New York. See you on the other side! Your information will not be shared. 2022 / 2023 is shaping up to be some pretty bad years for PE fundraising. 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. Blackstone Infrastructure Associates L.P. Delaware. feel comfortable with accounting, dcf, m&a models, and lbo's. Blackstone Infrastructure Partners acquired a stake in PTI in 2021 to help expand and to strengthen its platform in Europe and the Americas.