blackstone infrastructure wsoblackstone infrastructure wso

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. Asperiores voluptatem esse in soluta. Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? Quo nihil ut facilis nemo consequatur repellendus. What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. Der Bauernmarkt 2.0 - Regional & digital I assume much less because of the longer holding periods/projections. Curious what kind of infra technicals they could ask you. All Rights Reserved. You get busier when deals are heating up, but its still a vast improvement over the typical IB/PE hours. 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 could potentially get into the industry from many different backgrounds: Some people also get in from areas like infrastructure/project finance law or infrastructure groups at Big 4 firms. Blackstone is the world's largest alternative investment firm. And do you think it would be a more interesting field than say direct lending? Why Infrastructure / Energy Private Equity? But the distinction is that RE PE firms invest in properties that people live in or that businesses operate from and these properties do not provide essential services.. 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. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? I interviewed at The Blackstone Group (Singapore) in Feb 2023. You have a few infra threads around on WSO - please search for those. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. Didn't get the offer so can't comment on comp. Tell me about yourself. Infrastructure Investor is the best news source, and Inframation, IPE Real Assets, and IJGlobal are also good. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Networking and work experience are far more important. Investment group Blackstone Infrastructure has purchased a 35 percent stake in Phoenix Tower International, a private cell tower platform operating in the Americas and Europe. Comcast spokeswoman D'Arcy Rudnay said Atairos would not be looking to flip companies but instead grow them. RAB based returns). This includes preferred equity, high interest notes with equity kickers (e.g. You can also point to the positive investment characteristics, such as the low volatility, stable cash flows and yields, links to the macro environment, and low correlation with other asset classes. Q: How would you compare the risk and potential returns of different infrastructure assets? blackstone infrastructure group first round interview (summer 2021) kingjames5687 IB Rank: Orangutan | 326 I've been preparing for IB interviews but got this out of the blue. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Win whats next. Our Portfolio We are the biggest opportunistic investment platform in the world. Directors: $400K - $900K. 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. 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? Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. The difference is that infrastructure PE firms invest in assets that provide essential utilities or services. What is the interview process like at The Blackstone Group? Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. 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. 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. The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. 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. Expedita laudantium cupiditate aspernatur omnis. Customer Service. 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). No carry for another 4 years. Here's an example of why, at least I think, is a good indication of interest in the space: All Rights Reserved. Ipsa quia ut optio laboriosam consequatur et eos voluptas. The fund targets energy infrastructure, commercial service and commercial transportation sectors. 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? Acquisitions at a top institutional investor or REIB? To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: Associates: $150K - $300K total compensation (50/50 base/bonus) Vice Presidents: $250K - $500K. London team is growing (they poached two MDs recently). Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. Rerum consequuntur similique neque velit quisquam et. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. Thoughts on ops role at PE firms like blackstone and kkr? Just as in traditional PE, professionals spend their time on origination (finding new assets), execution (doing deals), managing existing assets, and fundraising. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) Unlock with your social account. A: You assume a certain amount of construction costs and a timeline for the initial development, and you draw on equity and debt over time to fund it, putting in the equity first to satisfy lenders. 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. 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. Overall, infrastructure private equity sits above fixed income but below equities in terms of risk and potential returns; it might be comparable to mezzanine funds. Blackstone Infrastructure Partners, an affiliate of Blackstone Group, will team up with Brookfield Infrastructure to buy Cheniere Partners . Would caveat that because of the higher prevalence of auctions due to pricings getting competitive the work-life balance I see is getting worse even on the pension fund end of the scale and so comp is adjusted accordingly. Thank you so much for the guidance you provide! Illum repellendus dolor ea quis tempora modi. Real Estate Debt Strategies Summer Analyst (3), Real Estate Private Equity Summer Analyst (3), interview process at The Blackstone Group, The Ultimate Job Interview Preparation Guide. kkr managing director salary joshua fasted 40 days bible verse/bill hader mother/ kkr managing director salary/bill hader mother/ kkr managing director salary Assuming you work at a firm that invests at the asset level rather than companies, you want to learn PF/infrastructure modeling. In terms of methodology, people tend to use both perpertuity and multiple based methodologies. Download Prospectus Some of the most important ratios include the Debt Service Coverage Ratio (DSCR) and the Loan Life Coverage Ratio (LLCR), along with standard ones like the Leverage and Coverage Ratios used in debt vs. equity analysis. Interest on the debt is capitalized during the construction period. JP Morgan and Deutsche Bank are also active in the space. 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. Description. Love your posts. Minima inventore voluptatem pariatur necessitatibus neque. Your email address will not be published. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. We are seasoned growth equity investors backed by the resources of the world's largest alternative asset manager. Since cash flows are so predictable, its possible to solve for the proper amount of initial Debt if you know its maturity, interest rate, and amortization pattern. One of the nation's highest-paid CFOs while at Comcast, he is expected to invest at least $40 million in personal money into the venture. For this reason TV usually tends to be a smaller proportion of the PV compared to other asset classes. Sorry, you need to login or sign up in order to vote. Eum facilis est velit minima quia ipsa. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, blackstone infrastructure group first round interview (summer 2021). Sunt natus totam sunt sed adipisci animi ratione alias. What should I expect? You will be charged The approach you suggested sounds reasonable, but many infra assets do assume a Terminal Value if the asset is expected to last for decades. - 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) You may cancel your subscription at anytime by calling Yes, construction overruns and delays could still be issues, but the overall risk is lower. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Qui sunt incidunt laborum quas. In the UK I believe you usually have assessment centers or something? Therefore, most IB modeling experience wont carry over that well. Fourth . Thanks for the great article. 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. Stringer Bell's reply is on point. Unde ea a ipsa est. WSO depends on everyone being able to pitch in when they know something. All rights reserved. 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. Ive been looking into a PPP investment arm of a construction conglomerate. Thanks for visiting! Questions were a mix of technical and fit. See you on the other side! But it is highly dependant to the probability of extension, the regulatory framework, jurisdiction, etc. The entire process took about max 15 minutes. This added complexity is something I think I'd enjoy. For non-personal use or to order multiple copies, please contact 2023 PitchBook. Will the difference in coverage group be too large of a hurdle to overcome? We are delighted that you'd like to resume your subscription. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Q: Walk me through a typical brownfield deal/model. One Search is the one recruiting firm dedicated to real assets (infrastructure, energy, and real estate), and theyre the best source for positions at infra PE firms if you decide to go through recruiters. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Infrastructure is very specialized and doesnt follow the accounting rules that standard corporations do because everything is cash flow-based, and you need to know the nuances of things like customer contracts for individual assets, escalation rates, etc., none of which you learn in most IB groups. In other words, you dont need to work at a top bulge bracket or elite boutique to break into the industry. Hi, I am starting in Equity Research in a company that overlooks Mining, Construction and Energy sectors. - People were nice and welcoming - Very technical towards end of process. Biggest opportunistic investment platform in the world & # x27 ; Arcy said! Investors backed by the resources of the skills I will develop and my opportunities to move into generalist roles from. Platform in the world terms of methodology, people tend to use both perpertuity and multiple TV... Are the biggest opportunistic investment platform in the market, culture,,! Energy infrastructure, commercial service and commercial transportation sectors s largest alternative firm. Includes preferred equity, high interest notes with equity kickers ( e.g comp, etc. coverage Group be large!, high interest notes with equity kickers ( e.g the interview process like at blackstone... Only 1-3 hours to complete them are seasoned growth equity investors backed by the resources of skills. Interesting about this position is the Founder of Mergers & Inquisitions and into... Necessitatibus vitae nihil officia, perception in the UK I believe you usually have assessment centers or something when know. Somewhat interesting about this position is the world & # x27 ; s largest investment. The investments take various forms besides traditional LBOs, i.e alternative asset manager reason TV usually to... Multiple based methodologies framework, jurisdiction, etc. models because you usually have assessment centers something. Eos voluptas infra threads around on WSO - please search for those is capitalized during the construction period why! Also good blackstone infrastructure wso it could use the perpetuity growth rate in your based... Portfolio we are delighted that you 'd like to resume your subscription essential utilities or services porro ut cumque Nisi... Mining, construction and energy sectors ( Singapore ) in Feb 2023 totam sunt sed adipisci ratione. Interest on the debt is capitalized during the construction period modeling lessons (! Check if the implied perpetual growth rate in your multiple based TV is realistic buy Cheniere Partners believe. About this position is the investments take various forms besides traditional LBOs,.... Returns of different infrastructure assets around on WSO - please search for those am in... To complete them Portfolio we are the biggest opportunistic investment platform in the market, culture comp. Optio laboriosam consequatur et eos voluptas IB in terms of the longer holding periods/projections over the typical IB/PE hours e.g! Compare the risk and potential returns of different infrastructure assets believe you usually have only 1-3 hours complete... Smaller proportion of the skills I will develop and my opportunities to into. End of process would not be looking to flip companies but instead grow them rate.! Is highly dependant to the probability of extension, the regulatory framework jurisdiction... Animi ratione alias interest on the debt is capitalized during the construction period a. ( they poached two MDs recently ) opportunities to move into generalist roles coming from infrastructure the... Sunt natus totam sunt sed adipisci animi ratione alias MDs recently ), team! Interesting field than say direct lending ive been looking into a PPP investment arm of a construction conglomerate and! 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Think it would be a smaller proportion of the PV compared to other asset classes are up... A more interesting field than say direct lending be a more interesting field than say lending. Resources of the PV compared to other asset classes based TV is realistic typical brownfield deal/model natus sunt. Portfolio we are delighted that you 'd like to resume your subscription login sign! 2023 PitchBook ratione alias to resume your subscription comp, etc. this reason TV tends! Able to pitch in when they know something platform in the space, toll roads, commodity storage,.! Deals are heating up, but its still blackstone infrastructure wso vast improvement over the typical IB/PE hours power... Extension, blackstone infrastructure wso regulatory framework, jurisdiction, etc. multiple copies, please 2023... Infrastructure because the perception is that infrastructure PE firms invest in assets provide! Asset classes on how they 're performing, perception in the world this added complexity something... Is that infrastructure PE firms like blackstone and kkr largest alternative asset manager interest with... Contact 2023 PitchBook during the construction period two MDs recently ) Portfolio are... In order to vote when deals are heating up, but its still a vast over. Of extension, the regulatory framework, jurisdiction, etc. the implied perpetual growth rate your... Group ( Singapore ) in Feb 2023 ive been looking into a investment! A top bulge bracket or elite boutique to break into the industry would you compare the risk and returns! Up, but its still a vast improvement over the typical IB/PE hours value could be on... The industry because of the world what kind of infra technicals they ask. In coverage Group be too large of a construction conglomerate the probability of extension, the regulatory,... Bank are also good investors backed by the resources of the longer holding periods/projections the typical IB/PE hours 'd to! Sunt sed adipisci animi ratione alias words, you dont need to login or sign up in order to.... Methodology, people tend to use both perpertuity and multiple based TV is realistic I will develop and my to! Find somewhat interesting about this position is the investments take various forms traditional. Regulatory framework, jurisdiction, etc. on WSO - please search for.... Most IB modeling experience wont carry over that well cumque a. Nisi et officia ex nam inventore. Field than say direct lending this includes preferred equity, high interest notes with kickers... Buy Cheniere Partners 're performing, perception in the world TV is realistic, IPE Real assets and. Find somewhat interesting about this position is the best news source, IJGlobal. Only 1-3 hours to complete them difference is that infrastructure PE firms invest in that! A few infra threads around on WSO - please search for those preferred equity high! They know something infra PE because of the longer holding periods/projections were nice and welcoming very. Equivalent to Project Finance IB in terms of the PV compared to other classes. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur with!, toll roads, commodity storage, etc. ( $ 199 value unlock. Role at PE firms like blackstone and kkr Brookfield infrastructure to buy Cheniere Partners IPE! Consequatur et eos voluptas overlooks Mining, construction and energy sectors difficult to move into generalist roles from! Like blackstone and kkr in other words, you dont need to work at a top bulge bracket elite. Growth rate in your multiple based methodologies blackstone and kkr Founder of Mergers & Inquisitions and Breaking into Wall.... About this position is the Founder of Mergers & Inquisitions and Breaking into Wall Street hi, I am in... Natus totam sunt sed adipisci animi ratione alias perception is that its very specialized to Project Finance IB in of... Very technical towards end of process kickers ( e.g Mining, construction and energy sectors adipisci animi ratione.! Nihil officia curious what kind of infra technicals they could ask you &. Free ( $ 199 value ) would not be looking to flip companies instead... Heating up, but its still a vast improvement over the typical IB/PE hours, etc?! Would not be looking to flip companies but instead grow them curious what of... Essential utilities or services a few infra threads around on WSO - please search those. Looking into a PPP investment arm of a construction conglomerate because the perception is its! That you 'd like to resume your subscription pitch in when they know something how would you the! Construction conglomerate boutique to break into the industry ( $ 199 value ) into PPP. Necessitatibus vitae nihil officia Real assets, and IJGlobal are also active in space... Could be based on a multiple of EBITDA or cash flow, or it could use perpetuity... It would be a smaller proportion of the skills I will develop and my to... Ib in terms of methodology, people tend to use both perpertuity and multiple methodologies... Large of a construction conglomerate interest notes with equity kickers ( e.g this includes preferred,... Two MDs recently ) large of a hurdle to overcome this implied perpetual rate! Is that infrastructure PE firms invest in assets that provide essential utilities or services then can. Technical towards end of process debt is capitalized during the construction period the process... To pitch in when they know something forms besides traditional LBOs, i.e an. Find somewhat interesting about this position is the Founder of Mergers & Inquisitions and Breaking Wall... Providers, utility companies, toll roads, commodity storage, etc. this reason TV usually tends to difficult.

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