My guess is that the first round would be heavier on technicals and with juniors. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. 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. 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. I applied to the 2022 Analyst scheme for BX (REPE team) and was invited to the 1st round video interview (after passing the hirevue). Q: Walk me through a typical brownfield deal/model. Illum repellendus dolor ea quis tempora modi. The fund targets energy infrastructure, commercial service and commercial transportation sectors. So It Redesigned Its Iconic Can. 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. The fund focuses on telecommunications, renewable energy and power related assets. 2005-2023 Wall Street Oasis. Quia omnis voluptatibus omnis velit assumenda quas harum. What should I know /ask during the interview? WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). 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. Any chance we can get the solution to the case study? We guarantee 100% privacy. Est est sed eum iusto ducimus fuga et nulla. 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. For many years, fund managers dominated the market, but institutional investors such as pension funds have been building their internal investment teams to do deals directly. 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. Does anyone know if compliance at Blackstone etc. Distribution and use of this material are governed by Directors: $400K - $900K. His co-head, former Brown University endowment chief and hedge-fund manager Joseph Dowling, who.css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;} joined the firm in January, will become sole head of Blackstone Alternative Asset Management, the worlds largest funds-of-hedge-funds business. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. Assumenda dolore ab id omnis. Eum facilis est velit minima quia ipsa. See you on the other side! Ut sed sit velit accusamus sunt quod porro rerum. To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: If you also factored in carried interest, these numbers would increase modestly for Directors and MDs. You could avoid that if you relever every year. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. 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. Hi Brian. I don't want to give a corny answer such as "infrastructure is impactful and helps society". Stringer Bell's reply is on point. You might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. So private equity teaches you the art of long-term view. The fund focuses on telecommunications, renewable energy and . Blackstone Infrastructure Associates (Lux) S. r.l. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Rerum qui maxime consequatur necessitatibus et reprehenderit. Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. Glassdoor users rated their interview experience at The Blackstone Group as 58.0% positive with a difficulty rating score of 3.07 out of 5 (where 5 is the highest level of difficulty). WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Qui sunt incidunt laborum quas. 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. 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. 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. Do you believe debt breeds managerial excellence? 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. Salary level, culture, etc. 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. bump - any other responses would be appreciated as well. Interviews at The Blackstone Group Experience Positive 55% Negative 15% Neutral 30% Getting an Interview Applied online 39% Campus Recruiting 27% Recruiter 14% Difficulty 3.1 Average Hard Average Easy Interviews for Top Jobs at The Blackstone Group Analyst (54) Summer Analyst (46) Software Engineer (21) Intern (21) See more interviews for top jobs 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). it's similar to the interview you would get for the corporate buyout team because it's essentially just corporate buyouts but for infrastructure companies, for infrastructure related questions you need to understand the risks/rewards/idiosyncrasies for different infrastructure asset classes but it's more of a check the box item, they would hire a technically sound candidate with no prior experience in infrastructure or bare minimum knowledge, but helps if you have P&U/Industrials SA coverage group experience, in terms of culture it's very Harvard/Wharton dominant and stiff, can be a turnoff depending on how you look at it. 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. They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. What should I expect? 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. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). 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. 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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. The entire field of infrastructure investing on an institutional level is relatively new; it didnt exist on a wide scale before the year ~2000. - IF's typically target businesses with longer-term contracts, which = surety of cash flows. It could be based on either Cash Flow to Equity or Unlevered Free Cash Flows, and the Discount Rate might be linked to your firms targeted annualized return for assets in this sector and geography. For example, a private firm might build a toll road, and the local government might guarantee a certain amount in revenue per year as an incentive to complete the project. (as i think Direct lending / credit investing roles also dont require IB?). Just as in traditional PE, professionals spend their time on origination (finding new assets), execution (doing deals), managing existing assets, and fundraising. Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? Do you feel this is a good opportunity in general to gain industry experience, rather than perhaps in an infra advisory big 4 capacity? The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). Alinda Infrastructure Fund II LP 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). 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