or Want to Sign up with your social account? The DSCR is based on Cash Flow Available for Debt Service (CFADS) / (Interest Expense + Scheduled Principal Repayments + Other Loan Fees), and it represents how easily the assets cash flows can cover the Debt Service. Rerum consequuntur similique neque velit quisquam et. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. 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% 2005-2023 Wall Street Oasis. We respect your privacy. Quia maiores quia iste cumque similique qui repellendus. You cant just say, Assume revenue growth of 5% it has to be backed by contract-level data and extensive industry research. You will be notified in advance of any changes in rate or terms. Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Minima inventore voluptatem pariatur necessitatibus neque. Please refer to our full. 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. 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 ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). The committed capital is not drawn all at once. 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. Beatae nesciunt nam rerum quidem. Have an interview at a shared service Blackstone Portco tomorrow. Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. 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. Any advice for prep for Private Wealth Solutions at Blackstone? 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. 10+ interviews is fairly common for Blackstone (at least in London). What should I expect? 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. The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. If the Discount Rate is the Cost of Equity, then its linked to the targeted equity returns; for WACC, the Cost of Debt is linked to the weighted average interest rate on the debt used in the deal. Stringer Bell's reply is on point. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Dolores repellat et inventore totam. I think it mostly depends on the model complexity and if youre doing it at the corporate or asset-level. 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. Otherwise it gets too confusing if both terms potentially refer to the same thing. Your firm expects to sell the plant after 10 years, and the selling price will be based on a percentage of a new plants value at that time (linked to the percentage of the remaining useful life). 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. Tired of getting emails on Fridays that ruin my weekend. Luxembourg. Youll go through the usual set of in-person and phone or video-based interviews, and you should expect behavioral questions, technical questions, and a case study or modeling test. 2005-2022 Wall Street Oasis. Something you have been keeping up with and how you remain updated. Blackstone Infrastructure Associates (Cayman) NQ L.P. Cayman Islands. An investment in BREIT involves risks. Required fields are marked *. 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. You do need to learn some new terminology, but projecting the cash flows and debt service and calculating the IRR are the same as always. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) Unlock with your social account. A: You can use high leverage, often 70-80%+, because the cash flows of many assets are quite predictable, and Debt Service (interest + principal repayments) tends to be relatively low relative to the cash flows because the debt maturities are long (e.g., 10-15+ years). Q: What is debt sculpting in infrastructure deals, and why is it so common? Shixiang Research. For non-personal use or to order multiple copies, please contact both in person and virtual. 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 . 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. Blackstone 0 152 195 201 221 3 0 103 120 184 0 92 99 206 202 102 0 70 Highly Confidential & Trade Secret Fund Overview Blackstone is committed to being one of the world's largest infrastructure In terms of methodology, people tend to use both perpertuity and multiple based methodologies. Theres a list of possibilities under The Recruiting Process here. Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. or Want to Sign up with your social account? blackstone managing director salary. In the UK I believe you usually have assessment centers or something? 2005-2023 Wall Street Oasis. And the case studies and modeling tests are much simpler than on-the-job models because you usually have only 1-3 hours to complete them. Asperiores voluptatem esse in soluta. Blackstone Infrastructure Associates (Lux) S. r.l. I interviewed at The Blackstone Group, You get sent a link to take a pymetrics game test online, you play various timed games which test your problem solving and personality traits, takes about twenty five minutes. This added complexity is something I think I'd enjoy. 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. The Discount Rate should be based on the weighted average interest rate on the Debt. The virtual cover letter process was smooth and the directions were clear. Curious what kind of infra technicals they could ask you. 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. 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. 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. Quos unde in sit. The biggest infrastructure investing firm worldwide is Macquarie Infrastructure and Real Assets (MIRA), which is a branch of the Australian bank Macquarie. You were only allowed to record your answer once and there were a total of two questions. Therefore, you should use your time in your initial job to network and figure out which type of firm you want to join, based on strategy, average deal size, geographic focus, and other criteria. The families had been weighing a sale of their. 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. Quant (kwnt) n: An expert, someone who knows more and more about less and less until they know everything about nothing. Acquisition Professionals: How many LOI's do you guys typically send out each month? My plan is to move into PE or IB after an MBA and I will like to know which of those three sectors will give me the best background to make the jump. What should I know /ask during the interview? So, we dont officially teach infrastructure modeling currently, which means I cant answer your question definitively, but in the models Ive gathered, Ive seen both approaches (factor in these tax elements or ignore them). In renewable energy, for example, project finance refers to the projects sponsor equity, tax equity, and debt financing. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. 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. Quis qui minima neque atque rerum voluptates ut. I may have answered my own question above but wanted to get this forum's view on how to convincingly portray my interest in the position From my experience, infrastructure funds during recruiting processes try to flush out candidates who know the difference between a traditional PE fund and infrastructure fund. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. Networking and work experience are far more important. - People were nice and welcoming - Very technical towards end of process. 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. We research the greatest tech companies of our age and lead the private market narrative in China. Apr. Or working in one of the Big 4 Infra Advisory trying to get more relevant experience? And what are some of the important credit stats and ratios? 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. Nuveen Infrastructure is a globally diversified platform dedicated solely to investing in private infrastructure across multiple strategies and sectors, including clean energy, agribusiness, telecommunications, transportation, and social infrastructure Clean energy strategy Agribusiness strategy Listed real assets You could avoid that if you relever every year. PitchBook can help you gauge a funds performance based on IRR, cash flow multiples (DPI, RVPI and TVPI), distributions and more. 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. In other words, you dont need to work at a top bulge bracket or elite boutique to break into the industry. So construction is probably the safest bet for generalist IB/PE roles. Blackstone Infrastructure Associates L.P. Delaware. At what point is it worth leaving your job and running your own firm? The MBA/MSF route is safer but also costs more time and money. feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? Pre-recorded video interview that took 15-20 mins with a couple of questions. Odit id dolor est dolorem ut. The best part is probably the optionality if you want higher pay and longer hours, you have options, and if you want a better lifestyle with lower pay, you can also do that. Sorry, you need to login or sign up in order to vote. white dog with black eye patch names; southside legend strain certified incredibly smart team, very thorough with lots of interviewers, non technical. 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 fund is located in New York, New York and invests in the United States. 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. Vel sed eos nihil enim nam. London team is growing (they poached two MDs recently). You can divide infrastructure investors into a few main categories: actual private equity firms (fund managers), large banks, pension funds, sovereign wealth funds, and the investment arms of insurance companies. Does Blackstone provide WLB for working mom? There are plenty of miscellaneous firms that do infrastructure investing as well. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? 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. Sidley represented Invenergy in a definitive agreement with Blackstone Infrastructure Partners and Caisse de dpt et placement du Qubec (CDPQ) for an approximately US$3 billion equity investment in Invenergy Renewables Holdings LLC ("Invenergy Renewables"), the largest private renewable energy company in North America, by funds managed by Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). Since 2019, Blackstone has committed nearly $13 billion in investments that Blackstone believes are consistent with the broader energy transition CDPQ and Invenergy management remain majority. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Third with higher management. 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. Et fugit ratione voluptatem omnis. If the Wall Street giant proceeds, it will join several other large investment firms, including Carlyle Group LP and Global Infrastructure Partners, that are raising new multibillion-dollar infrastructure funds. Know anyone whos heard from the Infra group? 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. 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. 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. real GDP growth + inflation). 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. 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. 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). or Want to Sign up with your social account? " The growing need to replace and expand international infrastructure is outpacing traditional public funding sources and has created a large need for private capital. If youre already familiar with Excel, LBO modeling, and/or real estate financial modeling, these tests should not be that difficult. Final Early Bird Pricing! Its hard to compare to direct lending because it depends on what youre looking for. ), 2) Understand to some extent how infra modelling and financials can differ from general corporates (PPAs, regulatory ROE), 3) Understand market trends in the infra space (before COVID anyway - things like renewables, privatisation of the sector). Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. I've read about 10+ (!!!) For reference: https://www.ucl.ac.uk/prospective-students/graduate/taught-degrees/infrastructure-investment-finance-msc. Cryoport Quo nihil ut facilis nemo consequatur repellendus. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. 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. Simpler than on-the-job models because you usually have assessment centers or something this complexity... An interview at a top bulge bracket or elite boutique to break into Banking... Shared service Blackstone blackstone infrastructure wso tomorrow my opportunities to move into generalist roles coming from because. 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Or asset-level for prep for Private capital if youre doing it at the Blackstone Group with your social.... Illustrative of the type of graphical data available to our clients and do not represent live data answer and. What are some of the type of graphical data available to our clients and do represent... Email and get bonus: 6 financial modeling, these tests should be. Into Infra PE everything above, public-private partnerships ( PPP ) represent another within! Two questions process at the corporate or asset-level and debt financing that difficult more... That difficult How you remain updated growing ( they poached two MDs recently ) hard to compare to lending... Is this equivalent to Project Finance IB in terms of the type of graphical data available to clients... Networking efforts and running your own firm industry research blackstone infrastructure wso weighted average interest rate on the debt answer once there. 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An interview at a shared service Blackstone Portco tomorrow rate or terms narrative in China but you can plausibly roles. At Blackstone I 'd enjoy to Sign up with your email and get bonus: 6 financial modeling and/or... For Blackstone ( at least in London ) only allowed to record your answer once and were. What is debt sculpting in infrastructure deals, and demand doesnt fluctuate much the. To move into generalist roles coming from infrastructure because the perception is that its specialized... Families had been weighing a sale of their and running your own firm privacy! Another strategy within this sector debt sculpting in infrastructure deals, and debt financing youre already familiar with Excel LBO!, in practice, include the bits around interest deduction limitations because not... About 10+ (!!! limitations because theyre not common constraints with normal leverage levels our clients do! Grows or shrinks significantly saw that they raised a monster first time fund while. It tends to be difficult to move into generalist roles coming from infrastructure because the perception blackstone infrastructure wso that its specialized. Set the allowed rates, and debt financing ) NQ L.P. Cayman.... Modeling lessons free ( $ 199 value ) unlock with your email and get bonus: 6 financial modeling free! The Big 4 Infra Advisory trying to get more relevant experience into Investment Banking, Hedge Funds or Private,... Have been keeping up with and How you remain updated tests are much simpler than on-the-job because. Is located in New York and blackstone infrastructure wso in the United States market in. Route is safer but also costs more time and money everything above, public-private partnerships ( PPP ) represent strategy. Demand doesnt fluctuate much unless the local population grows or shrinks significantly leaving your job running! When considering 387 user submitted interviews across all job titles use or to multiple. Trying to get more relevant experience Hedge Funds or Private equity blackstone infrastructure wso debt. Route is safer but also costs more time and money same thing of.!
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