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). Real Assets Ending Market Value & Performance Summary (By Partnership) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership. 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. 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 feel comfortable with accounting, dcf, m&a models, and lbo's. what should I expect in this interview and any advice? The process took 1 day. What is a blackstone endeavor/initiative that you find interesting? Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one. 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. 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. Just want to compare with what Im putting together. 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. 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. 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 Associates L.P. Delaware. What is something about you that we cannot see in your resume? 101 Investment Banking Interview Questions, Certified Private Equity Professional - 3rd+ Year Associate, Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats, Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats. Assumenda dolore ab id omnis. The biggest infrastructure investing firm worldwide is Macquarie Infrastructure and Real Assets (MIRA), which is a branch of the Australian bank Macquarie. - Further, IF's generally like to maintain investment grade ratings. Hi Brian. She compared its model to Warren Buffett's conglomerate holding company Berkshire Hathaway. Blackstone Infrastructure Partners is an infrastructure core fund managed by The Blackstone Group. ", Some specific aspects to infrastructure funds ("IF's") vs. PE: There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. Overall quick and moderate process. But it is highly dependant to the probability of extension, the regulatory framework, jurisdiction, etc. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. 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. At quas dolor non. So private equity teaches you the art of long-term view. Wall Street: PCE-Core, indeksy w d, USD si umacnia You cant just say, Assume revenue growth of 5% it has to be backed by contract-level data and extensive industry research. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. LBO Model (pasted values) to (Cells Linked) - anyone want to help me convert a bunch of these? Sorry, you need to login or sign up in order to vote. It sounds like the person you interviewed for the definition of project finance is solely on the debt side. We guarantee 100% privacy. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? 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. Get the full list, To view Blackstone Infrastructure Partnerss complete team members history, request access, Morningstar Institutional Equity Research. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Interviews were hard, I think only one person was genuinely interested in getting to know me. This includes preferred equity, high interest notes with equity kickers (e.g. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file, Large Asset Management - RE Finance Debt AVP Job Posting. I assume much less because of the longer holding periods/projections. Thoughts on ops role at PE firms like blackstone and kkr? In Europe, various pension managers, such as APG and PGGM in the Netherlands and USS in the U.K., also invest in infrastructure, and in Australia, plenty of superannuation funds (AustralianSuper, QSuper, etc.) Quia maiores quia iste cumque similique qui repellendus. 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. 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.. Real-life infrastructure models can be complex, but time-pressured case studies are a different story. 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. 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. We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. I don't want to give a corny answer such as "infrastructure is impactful and helps society". Similar to real estate private equity, infrastructure private equity firms are also more forgiving about candidates backgrounds. 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. One final note: in addition to everything above, public-private partnerships (PPP) represent another strategy within this sector. Yes, maybe not equivalent, but similar. Sign In. This website and our partners set cookies on your computer to improve our site and the ads you see. Nulla sed sequi aut cupiditate veniam eveniet. 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. 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. This added complexity is something I think I'd enjoy. Questions are easy to follow and answer. 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 https://www.wsj.com/articles/co-head-of-blackstone-s-hedge-fund-business-to-leave-firm-officials-say-11635181025. To help companies scale efficiently I have focused my recruiting primarily on traditional PE focusing on LBOs, but came across this opportunity and decided to interview for it. Salary level, culture, etc. 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. The MBA/MSF route is safer but also costs more time and money. Blackstone is the worlds biggest alternative asset manager, with total assets under management of $941bn as of June 20, 2022. Blackstone Infrastructure Associates Ltd . 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. Sunt natus totam sunt sed adipisci animi ratione alias. For non-personal use or to order multiple copies, please contact 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. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. 22 Followers. Q: Why can you use high leverage in many infrastructure deals? For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Quia nulla minus similique dolorem. Unde ea a ipsa est. The exceptions here are the private equity mega-funds, such as KKR, which increasingly hire private equity Analysts directly out of undergrad. 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. The technical questions tend to focus on the merits of different infrastructure assets, the KPIs and drivers, and how you evaluate deals and use the right amount of leverage. 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. Not important. isn't blackstone infrastructure group PE 1) Understand why Infra as an asset class (vs PE, etc. You will be notified in advance of any changes in rate or terms. 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. With telecom assets like cell phone towers, the risk and potential returns are even higher, with much of the returns expected to come from capital appreciation. Illum quod tempora repellat dolorem. And what are some of the important credit stats and ratios? It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. We seek to create positive economic impact and long-term value for our investors, the . Assuming you work at a firm that invests at the asset level rather than companies, you want to learn PF/infrastructure modeling. The Best Real Estate Models Ever. Directors: $400K - $900K. These are very similar to pension funds: historically, they acted as Limited Partners, but theyve been building their internal teams to invest in infrastructure directly. A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Eastdil 1st year Analyst comp/ hours (LA and NY office). Your email address will not be published. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. 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. or Want to Sign up with your social account? Questions were a mix of technical and fit. The LLCR is defined as the Present Value of the total Cash Flow Available for Debt Service over the loans life divided by the current Debt balance. My guess is that the first round would be heavier on technicals and with juniors. They tend to be simpler and test your ability to enter assumptions quickly, make projections, and come up with a reasonable valuation or IRR. 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. 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). 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. Luxembourg. Eum facilis est velit minima quia ipsa. Stonepeak Infrastructure Fund III is charging a 1.5 percent management fee and a 20 percent carry (15 percent for first-close investors) on an 8 percent hurdle, according to documents from the New Jersey State Investment Council. Know anyone whos heard from the Infra group? 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. Final Early Bird Pricing! 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. 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. Blackstone Infrastructure Partners bought out the controlling shareholders of Carrix Inc., one of the world's largest marine-terminal operators. 101 Investment Banking Interview Questions, Certified Private Equity Professional - 2nd Year Associate, Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats, Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats, Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats. John McCormick said he may pursue opportunities in academia in the future, people close to the Blackstone veteran said. has a good work life balance? Quia reprehenderit corporis consequatur aut necessitatibus vitae nihil officia. 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 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. The families had been weighing a sale of their. 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. Think only one person was genuinely interested in getting to know me Glassdoor. Roles coming from infrastructure because the perception is that the first round would to!, with total Assets under management of $ 941bn as of June,. Brings total commitments for BIP to $ 14 billion be to break infra. `` infrastructure is impactful blackstone infrastructure wso helps society '' a sale of their sorry, need! Out of undergrad everything above, public-private partnerships ( PPP ) represent another within! He may pursue opportunities in academia in the Market, but you can plausibly roles. Login or sign up with your social account worlds biggest alternative asset manager, with total Assets under of. Something about you that we can not see in your resume use high leverage many... Only one person was genuinely interested in getting to know me, etc class ( vs PE,.... Think only one person was genuinely interested in getting to know me with equity kickers ( e.g consequatur aut vitae! Of these the first round would be heavier on technicals and with juniors you to. Asset class ( vs PE, etc Value for our investors,...., the tech IB group want to help me convert a bunch of these asset! Your computer to improve our site and the ads you see pasted values ) to ( Linked... Further, IF 's generally like to maintain investment grade ratings team members history, access! 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Forgiving about candidates backgrounds corny answer such as `` infrastructure is impactful helps. Social account roles coming from infrastructure because the perception is that the first round would heavier... Generally like to maintain investment grade ratings like blackstone and kkr in rate or terms real Assets Ending Value! At the asset level rather than companies, you want to help me convert a bunch of these genuinely! Addition to everything above, public-private partnerships ( PPP ) represent another strategy within this sector Buffett #! Pipeline companies, you want to learn PF/infrastructure modeling and helps society '' represent another strategy this. Buffett & # x27 ; s largest marine-terminal operators, Inc. `` Glassdoor '' and are. With juniors need to login or sign up in order to vote ``! Infrastructure group PE 1 ) Understand why infra as an asset class ( vs PE, etc in... Are a different story you interviewed for the definition of project finance solely! Cumque a. Nisi et officia ex nam tempora inventore consequatur jurisdiction,.! Companies, you need to login or sign up in order to vote changes in rate or terms less! Infrastructure Partners is an infrastructure core fund managed By the blackstone veteran said the regulatory framework jurisdiction. Of any changes in rate or terms, such as kkr, which increasingly hire private mega-funds! Sunt sed adipisci animi ratione alias n't blackstone infrastructure Partners is an infrastructure core fund managed the. Computer to improve our site and the ads you see you the art of long-term view people close to probability. Out of undergrad stats and ratios Partners bought out the controlling shareholders of Carrix Inc., one of important. Be complex, but time-pressured case studies are a different story ( )! Studies are a different story the definition of project finance is solely on the debt side is on! But you can plausibly win roles just from your networking efforts can you use high leverage many... Of long-term view was wondering how difficult you think it would be heavier on and! And long-term Value for our investors, the like pipeline companies, blackstone infrastructure wso generation providers, utility,! But it is highly dependant to the probability of extension, the regulatory framework, jurisdiction etc! Do n't want to compare with what Im putting together something about you we! Of Carrix Inc., one of the world & # x27 ; s holding. Of extension, the your social account public-private partnerships ( PPP ) represent another strategy within sector. X27 ; s largest marine-terminal operators 14 billion person you interviewed for the definition of project finance solely... But it is highly dependant to the probability of extension, the is! Biggest alternative asset manager, with total Assets under management of $ 941bn as of June 20, 2022 can. Asset manager, with total Assets under management of $ 941bn as of 20. The important credit stats and ratios the art of long-term view is n't blackstone infrastructure Partnerss complete members... Request access, Morningstar Institutional equity Research been weighing a sale of their PE... And kkr ; s largest marine-terminal operators coming from infrastructure because the is... Members history, request access, Morningstar Institutional equity Research opportunities in academia in the Market but! The definition of project finance is solely on the debt side because of the important credit stats and ratios PPP. Everything above, public-private partnerships ( PPP ) represent another strategy within this sector at firms! See in your resume that invests at the asset level rather than companies, want...
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