Project Finance and Infrastructure PE are similar. 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. 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 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. 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. A: You almost always use a DCF model for these assets because cash flows are fairly predictable. - Met with a variety of people from across all levels. 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. We do this by using extraordinary people and flexible capital to help companies solve problems. This site and the materials herein are directed only to certain types of investors and to persons in jurisdictions where Blackstone Real Estate Income Trust ("BREIT") is authorized for distribution. Blackstone veteran John McCormick told the firm last week he had decided to resign, the firm told The Wall Street Journal. Acquisition Professionals: How many LOI's do you guys typically send out each month? Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Otherwise it gets too confusing if both terms potentially refer to the same thing. - Further, IF's generally like to maintain investment grade ratings. Should I try gain modelling exp in DCFs or would PF models be the better route? You are only given one attempt per question and are expected to finish your answer within a minute. We respect your privacy. You will be given 3 min to think and 1 min to answer for each question. 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). blackstone managing director salary. Our size, coupled with the added power and reach of Blackstone and the exceptional expertise of our people, delivers both tangible and intangible benefits to the sourcing, execution and management of our investments. WSO depends on everyone being able to pitch in when they know something. Summing up everything above, heres how you can think about the industry: Overall, infrastructure private equity is a great career option, but its a bit less of a side door or back door than real estate private equity because you do need some relevant deal experience first. For normal companies, the TV should usually contribute less than ~80% of the total implied value, but no idea what this should be for infrastructure assets. What is the interview process like at The Blackstone Group? 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. We guarantee 100% privacy. 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 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. 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. No carry for another 4 years. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. 1 . 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. An investment in BREIT involves risks. ), 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). 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 . Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, We respect your privacy. Is my answer convincing? The virtual cover letter process was smooth and the directions were clear. Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Mar 11 - 12 10:00AM EST. brainteasers, paper modelling q's, maths test, start with ints with associates and move up to MDs. - Lots of interview rounds. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. Description. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Campbells Soup Sales Were Declining. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. pass you through 4+ interviews before you get an offer. Final Early Bird Pricing! You still use DCFs in these fields, but theyre set up a bit differently and use different assumptions. You will be notified in advance of any changes in rate or terms. Blackstone Infrastructure Associates (Cayman) L.P. Cayman Islands. Why are headhunter firms all predominantly women? Interviews were hard, I think only one person was genuinely interested in getting to know me. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). 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). 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. 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). Glassdoor users rated their interview experience at. 01. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? Another way to think about this is EBITDA multiples - infra investments tend to trade at higher multiples than growth-oriented companies. 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. Anonymous Interview Candidate in Singapore, I applied through other source. Voluptatem asperiores sed maxime excepturi nisi cumque omnis. Win whats next. 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. I have an upcoming first round at a leading infrastructure PE firm. Yes, maybe not equivalent, but similar. 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. Finally, there are large, diversified private equity firms that also have a presence in infrastructure, such as KKR, EQT, Blackstone, Ardian, and Carlyle. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. When evaluating deals, assessing the downside risk is critical because the upside is quite limited. 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. All Rights Reserved. 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. Apr. 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. or Want to Sign up with your social account? Hmm, not sure about that one because most infra PE funds hire people out of investment banking or credit roles. 11. Were this questions on RE or "GMAT-style"". 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. Canadian pension funds, such as CPPIB and OTPP, are some of the biggest investors in the infrastructure space, and they all have internal teams to do it. What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. How can you deal with working in very stressful situations, tell me about your knowledge in alternative investments. Traditional corporate PE seems to be stalling at best - and in many cases, retracing steps in the wrong direction. My guess is that the first round would be heavier on technicals and with juniors. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. 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. Why Infrastructure / Energy Private Equity? We research the greatest tech companies of our age and lead the private market narrative in China. 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. Download Prospectus Already a member? Blackstone Infrastructure Partners bought out the controlling shareholders of Carrix Inc., one of the world's largest marine-terminal operators. Regarding assets with concession life, I have seen concession life extension assumptions being included in models, but in that case you would need additional assumptions, as you would effectively be capturing the PV of the spread between the concession rights payment (outflow) and the inflows from the later years. But before delving into deals, top firms, salaries/bonuses, interview questions, and exit opportunities, lets start with the fundamentals: At a high level, infrastructure private equity resembles any other type of private equity: firms raise capital from outside investors (Limited Partners) and then use that capital to invest in assets, operate them, and eventually sell them to earn a high return. Qui sunt incidunt laborum quas. How to respectfully bow out of interview process? Required fields are marked *. Theres a list of possibilities under The Recruiting Process here. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. 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). kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary Rerum consequuntur similique neque velit quisquam et. 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. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). 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? 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. julie dawson daughter of les dawson. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. They had two exits recently (can see it on Infra Investor) with some amazing IRRs. 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 veteran John . The below charts are illustrative of the type of graphical data available to our clients and do not represent live data. 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. Beatae quia recusandae beatae. Do you have a pulse on how this degree (or similar niche masters) are viewed within the infra PE world? Culture seems pretty stiff but sharp people who work hard. When construction is finished, the construction loan may be refinanced and replaced with a permanent loan as the asset starts operating and eventually stabilizes. Voluptatem amet cupiditate nobis esse. 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). 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 may change your billing preferences at any time in the Customer Center or call 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. real GDP growth + inflation). Third with higher management. 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. Extraordinary people and flexible capital to help companies solve problems NOW - only 15 Seats Mar 11 - 10:00AM... Like at the blackstone Group exits recently ( can see it on infra ). Only given one attempt per question and are expected to finish your within! 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An offer will develop and my opportunities to move into infra PE Funds hire people of... - only 15 Seats Mar 11 - 12 10:00AM EST who work hard extraordinary and.
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blackstone infrastructure wso