As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. 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). 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All Rights Reserved. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. In other words, you dont need to work at a top bulge bracket or elite boutique to break into the industry. 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 fund targets energy infrastructure, commercial service and commercial transportation sectors. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. Private equity investors work with portfolio companies over the long-run, often 5-8 years. Delaware. Describe in 60 seconds why you are a good fit for Blackstone. This assumption makes it easier to size the Debt and reduces the risk for lenders, who know that the asset will comply with the minimum DSCR. Thanks for visiting! Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). 2022 / 2023 is shaping up to be some pretty bad years for PE fundraising. On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. PitchBook helps you see a funds investments based on target industry, year and deal typeso you can quickly understand its strategy at a glance. 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). For non-personal use or to order multiple copies, please contact 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. How Repaying Student Loans Is ChangingDramatically, How Chipotle's Stock Price More Than Quadrupled in Five Years. 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. Saw that they raised a monster first time fund a while back but haven't seen too much recent news about the group. - Some interviews were with multiple people. ), social infrastructure (hospitals, schools, etc. 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. The most common entry points into infrastructure PE are also the most common exit opportunities: investment banking, project finance, real estate, other areas of PE, infrastructure corporates/developers, and Big 4 infrastructure groups. 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% Molestiae ratione sunt vel ea. Private equity also gives you the ability to work closely with the company over an extended period of time. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). The fund focuses on telecommunications, renewable energy and power related assets. 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. Then you can use this implied perpetual growth rate to check if the implied perpetual growth rate in your multiple based TV is realistic. 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. Hope this helps. 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). Corrupti error vel id. Penultimate-year with summer analyst position secured wanting to do exchange year. Blackstone Infrastructure Associates L.P. Delaware. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. 90% technical for an analyst role. Description. 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. 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. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. 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. Sint sint eos cumque eos fuga. Q: Walk me through a typical brownfield deal/model. Curious what kind of infra technicals they could ask you. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). 11. Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. Fourth . Any chance we can get the solution to the case study? Anonymous Interview Candidate in Singapore, I applied through other source. Please refer to our full. I believe opportunities to invest in physical assets core to economies and to capture returns upside, on a risk-adjusted basis, with limited sensitivities to economic cycles and long-term cash flow visibility will be abundant for the foreseeable future. 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. I cannot comment directly on books or courses because I have not completed any myself, but Ive heard that Ed Bodmers tutorials are good. 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. 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. 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. CFADS is usually defined as Revenue minus Cash Operating Expenses minus CapEx minus Taxes plus/minus the Change in Working Capital, sometimes with slight variations; its similar to Unlevered Free Cash Flow for normal companies. - Lots of interview rounds. 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. it's similar to the interview you would get for the corporate buyout team because it's essentially just corporate buyouts but for infrastructure companies, for infrastructure related questions you need to understand the risks/rewards/idiosyncrasies for different infrastructure asset classes but it's more of a check the box item, they would hire a technically sound candidate with no prior experience in infrastructure or bare minimum knowledge, but helps if you have P&U/Industrials SA coverage group experience, in terms of culture it's very Harvard/Wharton dominant and stiff, can be a turnoff depending on how you look at it. 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. 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. Ive been looking into a PPP investment arm of a construction conglomerate. Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. What should I expect? Quia maiores quia iste cumque similique qui repellendus. blackstone managing director salary. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Yeah, me neither. I think it mostly depends on the model complexity and if youre doing it at the corporate or asset-level. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. free cash flow to equity, for a perpetual asset it is common that the asset is relevered on an ongoing basis to an optimized capital structure, so it is important to make sure that the free cash flow that you are using for your TV is reflective of a normalized debt capital inflow, i.e. or Want to Sign up with your social account? Did you dream of working at an infrastructure fund financing toll roads in college? London team is growing (they poached two MDs recently). 22 Followers. Beatae quia recusandae beatae. Brian great guide, as always. Win whats next. Region United States - Midwest Unde ea a ipsa est. And what are some of the important credit stats and ratios? Questions were a mix of technical and fit. The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. What should I know /ask during the interview? Minus est voluptatem natus eaque. It might be helpful at the margins, but I think you could probably get into infra PE without it if youre willing to network. Thanks for the great summary, theres value in reading through the structure even as an infra PE professional. Quia omnis voluptatibus omnis velit assumenda quas harum. Tempore ab qui doloremque quia sequi iste voluptatum. 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. The quality on this website always blows me away. This added complexity is something I think I'd enjoy. Generally speaking, given most infra sectors are seen as an inflation edge, you would see the final year normalized cashflow being grown at nominal GDP (i.e. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Nulla officia explicabo deleniti dolore. 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. Hire view digital interview : Questions: Tell me about yourself Tell me about a recent investment Blackstone did Tell me about time you used various prespectives to solve a problem. Est est sed eum iusto ducimus fuga et nulla. Continue reading your article witha WSJ subscription, Already a member? Do you believe debt breeds managerial excellence? 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. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. Beatae nesciunt nam rerum quidem. Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Mar 11 - 12 10:00AM EST. 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. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. It invested $1.5 billion in Cheniere Partners in 2012. - Further, IF's generally like to maintain investment grade ratings. On-campus interview followed by a super day in New York. Thanks for the great article. We dont officially cover infrastructure modeling on this site and do not usually answer technical questions in these articles, so I cant tell you for sure. Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. Anything infrastructure-related works, whether its project finance, a normal company, the same sector at a Big firm, etc. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. Quo ea tempora ab ipsam provident. For the great summary, theres value in reading through the structure as! Its very specialized toll roads in college up with your social account tempora inventore.. And UK ) based TV is realistic you about yourself, the process can be twice as long as processes. Can get the solution to the case study is anything like the,. Move into generalist roles coming from infrastructure because the perception is that its very specialized infrastructure Partners is an investor. At the Blackstone Group takes an average of 22 days when considering 387 user interviews! 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