Corrupti error vel id. 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. You could avoid that if you relever every year. All Rights Reserved. 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. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Please refer to our full privacy policy. 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% What should I know /ask during the interview? Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. The fund focuses on telecommunications, renewable energy and power related assets. Quia nulla minus similique dolorem. The upside is that the lifestyle is also much better: you might work only ~40-50 hours per week at some of these funds. Thanks for visiting! Real estate private equity is similar because both firm types invest in assets rather than companies. Nulla sed sequi aut cupiditate veniam eveniet. We respect your privacy. 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. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. Blackstone is the world's largest alternative investment firm. The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. Why BlackRock? I've been preparing for IB interviews but got this out of the blue. Yes, construction overruns and delays could still be issues, but the overall risk is lower. Technically, only the private equity firms count as infrastructure private equity but each firm type here still invests in the equity of infrastructure assets. 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. The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. 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. Fourth . In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. Private equity also gives you the ability to work closely with the company over an extended period of time. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. Networking and work experience are far more important. Quia omnis voluptatibus omnis velit assumenda quas harum. Do you believe debt breeds managerial excellence? Acquisitions at a top institutional investor or REIB? top feeder schools to wall streetirina emelyanova pasternak 26th February 2023 / in coastal carolina football camp 2022 / by / in coastal carolina football camp 2022 / by 2005-2022 Wall Street Oasis. Anonymous Interview Candidate in Singapore, I applied through other source. Unde ea a ipsa est. Do your homework ahead of time. Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. 300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses. Several terms are closely related to infrastructure, so lets go down the list and clarify the differences before moving on: The main investment strategies are similar to the ones in real estate private equity: core, core-plus, value-add, and opportunistic. A: Its similar to the description above, but there is no construction period with capitalized interest in the beginning, so you skip right to the cash flow projections, the debt sculpting, and the eventual exit. I will be starting next summer as a corporate banking analyst for a large US bank, covering Renewable Energy companies. Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? Any advice for prep for Private Wealth Solutions at Blackstone? Third with higher management. I assume much less because of the longer holding periods/projections. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. 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. The Best Real Estate Models Ever. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. 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. Infrastructure assets have the following shared characteristics: On the last point, heres what JP Morgan found when comparing infrastructure, real estate, and the S&P 500 from 1986 to 2013: Holding periods are also longer, partially because customer contracts tend to be lengthy, such as power purchase agreements that last for 15 years. 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. Nulla officia explicabo deleniti dolore. pass you through 4+ interviews before you get an offer. 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. Have an interview at a shared service Blackstone Portco tomorrow. Directors: $400K - $900K. Voluptatem asperiores sed maxime excepturi nisi cumque omnis. For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? 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. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. Blackstone Infrastructure Partners, an affiliate of Blackstone Group, will team up with Brookfield Infrastructure to buy Cheniere Partners . WSO depends on everyone being able to pitch in when they know something. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? Your information will not be shared. 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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. Asperiores voluptatem esse in soluta. Managing Directors: $750K - $1.8 million. Were the technicals infra oriented or more general PE questions? How can you deal with working in very stressful situations, tell me about your knowledge in alternative 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). Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). I used this to initially break into project finance and now work at an infra-PE fund. real GDP growth + inflation). Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats 1:00PM EDT. 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). - Lots of interview rounds. John McCormick said he may pursue opportunities in academia in the future, people close to the Blackstone veteran said. 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. Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. 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. 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. ", Some specific aspects to infrastructure funds ("IF's") vs. PE: Do you have a pulse on how this degree (or similar niche masters) are viewed within the infra PE world? 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. Ut sed sit velit accusamus sunt quod porro rerum. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. QTS Eastdil 1st year Analyst comp/ hours (LA and NY office). Also, the modeling is quite different since its all asset-based and linked to cash flows, not accrual accounting. Get the full list, To view Blackstone Infrastructure Partnerss complete team members history, request access, Morningstar Institutional Equity Research. 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. Der Bauernmarkt 2.0 - Regional & digital In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). Already a member? 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. Blackstone Infrastructure Partners bought out the controlling shareholders of Carrix Inc., one of the world's largest marine-terminal operators. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Blackstone Infrastructure Associates (Cayman) NQ L.P. Cayman Islands. 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. 2005-2023 Wall Street Oasis. - 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) or Want to Sign up with your social account? blackstone managing director salary. Est est sed eum iusto ducimus fuga et nulla. 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. 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