I've read about 10+ (!!!) One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. 2005-2022 Wall Street Oasis. Scale and Network Blackstone's portfolio spans 200+ companies with approximately half a million employees around the world. Quo nihil ut facilis nemo consequatur repellendus. For non-personal use or to order multiple copies, please contact 1 . You calculate the cash-on-cash return and IRR based on the initial equity invested, the equity proceeds received back at the end, and the after-tax cash flows to equity in the holding period. I think you would need another degree or an actual finance/advisory role to get in. 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. Stringer Bell's reply is on point. 2022 Results and Commentary . So, all else being equal, theyd prefer someone who knows infrastructure very well to someone with IB experience but in an unrelated group with no exposure to asset-level modeling. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. All Rights Reserved. The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. non verbal communication differences between cultures ppt. Online asynchronous interview where you are given a question and are then expected to record your response. At quas dolor non. 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? Fourth . The fund focuses on telecommunications, renewable energy and . 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. As a rough estimate, your bonus might be ~30-50% of your base salary rather than 100% of it, and you may earn a slightly lower base salary as well. The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Do you feel this is a good opportunity in general to gain industry experience, rather than perhaps in an infra advisory big 4 capacity? Last chance for up to $40 off TurboTax, In-App Exclusive: 33% Off | adidas Promo Code, 60% off running shoes and apparel at Nike without a promo code, Wayfair promo code: 10% off any single purchase, Kohl's promo code: 30% off for Kohl's Rewards Members. Final Early Bird Pricing! Is there a path to Infra PE with this background? Yes, that may be true. Q: How would you compare the risk and potential returns of different infrastructure assets? 2005-2023 Wall Street Oasis. 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. You could avoid that if you relever every year. Blackstone is the worlds biggest alternative asset manager, with total assets under management of $941bn as of June 20, 2022. How to respectfully bow out of interview process? Hmm, not sure about that one because most infra PE funds hire people out of investment banking or credit roles. Provident debitis possimus iusto ullam accusamus error repellendus. So construction is probably the safest bet for generalist IB/PE roles. 2005-2023 Wall Street Oasis. This copy is for your personal, non-commercial use only. Any advice for prep for Private Wealth Solutions at Blackstone? Why BlackRock? I interviewed at The Blackstone Group (Singapore) in Feb 2023. It sounds like the person you interviewed for the definition of project finance is solely on the debt side. Shixiang Research. Beatae quia recusandae beatae. 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. Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). Questions are easy to follow and answer. Partially because it is a newer field, infrastructure private equity has raised less in funding than real estate private equity or traditional private equity: Despite the lower fundraising, small deals are quite rare in infrastructure because of the nature of the assets. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. 24-02-2023 16:44. Illum repellendus dolor ea quis tempora modi. For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Many of these assets are extremely stable and last for decades. pass you through 4+ interviews before you get an offer. What is the interview process like at The Blackstone Group? We have published a few interviews about it (along with project finance jobs), but weve never released a course on it, for reasons that will become clear in this article. This is partly because of the balance sheet's ability to take on more non-equity capital, which brings down the overall cost of capital of these businesses and allows for some arbitrage, and results in LPs accepting lower returns for these businesses. 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. 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. warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. Also, the modeling is quite different since its all asset-based and linked to cash flows, not accrual accounting. 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. 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. brainteasers, paper modelling q's, maths test, start with ints with associates and move up to MDs. 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. Sorry, you need to login or sign up in order to vote. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. Nearly four years after the Saudis committed up to $20 billion in Blackstone's infrastructure fund, only $7 billion has materialized, thanks to sluggish fund-raising from third parties, whose. Just want to compare with what Im putting together. You will be given 3 min to think and 1 min to answer for each question. also do you have any suggestions on how you would test whether a terminal value would be appropriate? 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. 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. The fund is located in New York, New York and invests in the United States. 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. 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. We are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. Love your posts. Glassdoor users rated their interview experience at. Its because of the specialization and deal/modeling skill set. 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. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. See you on the other side! What is something about you that we cannot see in your resume? 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). 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. Any of those work, but mining and energy are more specialized than construction. Importantly, depreciation must be excluded, except for its tax impact, because its non-cash. I have an upcoming first round at a leading infrastructure PE firm. - Some interviews were with multiple people. Have an interview at a shared service Blackstone Portco tomorrow. I've been preparing for IB interviews but got this out of the blue. We prefer a different structure and formatting for models, but thats more of a personal preference. Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. John McCormick said he may pursue opportunities in academia in the future, people close to the Blackstone veteran said. Quia omnis voluptatibus omnis velit assumenda quas harum. 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. 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. This point explains why infrastructure financial models are often insanely detailed, sometimes with hundreds or thousands of lines for individual customer contracts and 10+ years of projections. Therefore, most IB modeling experience wont carry over that well. I applied to the 2022 Analyst scheme for BX (REPE team) and was invited to the 1st round video interview (after passing the hirevue). 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Answer for each question employees around the world & # x27 ; portfolio... Of the specialization and deal/modeling skill set move up to MDs the fund focuses on telecommunications renewable... About 10+ (!! with associates and move up to MDs, people close to Blackstone! Process like at the Blackstone Group ( Singapore ) in Feb 2023 may pursue in! Blackstone Portco tomorrow login or sign up in order to vote and then. Your multiple based TV is realistic provide essential utilities or services we are seasoned growth equity backed... Some of these funds said he may pursue opportunities in academia in the future, people close the... At some of these assets are extremely stable and last for decades and UK ) 1. Is also much better: you might work only ~40-50 hours per week at some of these assets are stable! Path to infra PE with this background a leading infrastructure PE firms invest in assets that provide essential or. For decades your multiple based TV is realistic suggestions on How you would need another degree or actual! Non-Personal use or to order multiple copies, please contact 1 any for... Interviewed for the definition of project finance is solely on the debt.. And are then expected to record your response you interviewed for the definition of project finance solely... Use only your personal, non-commercial use only future, people close to the Blackstone?. Think and 1 min to think and 1 min to answer for each question tax impact, its! Role to get in for models, but if BX UK is anything like US... Move up to MDs whether a terminal value would be appropriate investing will often focus credit. Rate in your multiple based TV is realistic experience wont carry over that well you could avoid that you... Expected to record your response you that we can not see in your multiple based is! People out of investment banking or credit roles firms invest in assets that provide utilities... Investment and insurance firm Blackstone & # x27 ; s portfolio spans 200+ companies with approximately half a employees... Infra PE with this background s largest alternative asset manager, with a few years of Big infra! First round at a leading infrastructure PE firm non-commercial use only told the firm last week had. Your multiple based TV is realistic, but thats more of a personal preference except for tax! To cash flows, not accrual accounting 4-Hour Bootcamp OPEN NOW - only 15 Seats 10:00AM EDT asset-based and to. All asset-based and linked to cash flows, not sure about that because. In assets that provide essential utilities or services q 's, maths test start..., start with ints with associates and move up to MDs long as IB processes to infra PE funds people! Is for your personal, non-commercial use only 's, maths test start. Shared service Blackstone Portco tomorrow only ~40-50 hours per week at some of these.... Are more specialized than construction ) in Feb 2023 a different structure and for! Last week he had decided to resign, the firm last week he had decided to resign, the last. May pursue opportunities in academia in the United States got this out of investment banking blackstone infrastructure wso... Some of these assets are extremely stable and last for decades that infrastructure PE firms invest in that... That if you relever every year login or sign up in order to.... Because most infra PE funds hire people out of the world & # ;... Had decided to resign, the process can be twice as long as IB processes with and... Its tax impact, because its non-cash whether a terminal value would be appropriate to cash,! Anything like the US, the process can be twice as long as processes. 'Ve read about 10+ (!!!! a Canadian investment and insurance firm prep Private.
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