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. What additional experience/credentials can I get to set myself apart? The Terminal Value could be based on a multiple of EBITDA or cash flow, or it could use the perpetuity growth rate method. To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: If you also factored in carried interest, these numbers would increase modestly for Directors and MDs. Luxembourg. Anyone have any insight on how they're performing, perception in the market, culture, comp, etc.? Blackstone is the world's largest alternative investment firm. 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. Not OP but I got the video interview on 7th of October, A friend of mine got a brain teaser last year in the first round (this was for SA), so maybe brush up on those too, Thanks for the insight. Not too sure, but if BX UK is anything like the US, the process can be twice as long as IB processes. Quant (kwnt) n: An expert, someone who knows more and more about less and less until they know everything about nothing. 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. WSO depends on everyone being able to pitch in when they know something. WSO depends on everyone being able to pitch in when they know something. 24-02-2023 16:44. 11. Will the difference in coverage group be too large of a hurdle to overcome? You will be given 3 min to think and 1 min to answer for each question. 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 From a regulators poin of view, there should be no spread, as any infra investor should only earn a fair return in the case of assets which are a quasi public good and operating as oligopolies or monopolies (hence, why a lot of infra businesses are running under a regulated model, e.g. 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. ely funeral home neptune, nj; longest nfl game weather delay; cari laque bio; Online Forms. Any advice for prep for Private Wealth Solutions at Blackstone? 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. Some, like airports, also have natural monopolies that make them incredibly valuable (well, except for when theres a pandemic). 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. This includes preferred equity, high interest notes with equity kickers (e.g. Experienced VP Interviews - Fit Questions, Asked to Co-invest - should I take it? What I find somewhat interesting about this position is the investments take various forms besides traditional LBOs, i.e. 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. So construction is probably the safest bet for generalist IB/PE roles. Interviews at The Blackstone Group Experience Positive 55% Negative 15% Neutral 30% Getting an Interview Applied online 39% Campus Recruiting 27% Recruiter 14% Difficulty 3.1 Average Hard Average Easy Interviews for Top Jobs at The Blackstone Group Analyst (54) Summer Analyst (46) Software Engineer (21) Intern (21) See more interviews for top jobs Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. bump - any other responses would be appreciated as well. 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. 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. brainteasers, paper modelling q's, maths test, start with ints with associates and move up to MDs. Fourth quarter total revenue of $242.2 million, representing 6.8% of year-over-year growth. Theres a blurry line between energy private equity and infrastructure private equity in the U.S., which is why firms like ArcLight and Energy Capital could be in either category. Eastdil 1st year Analyst comp/ hours (LA and NY office). 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. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. 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. Sorry, you need to login or sign up in order to vote. 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. What should I know /ask during the interview? Yes, construction overruns and delays could still be issues, but the overall risk is lower. Hedge funds investments can be as short as a few weeks. For many years, fund managers dominated the market, but institutional investors such as pension funds have been building their internal investment teams to do deals directly. Atlantia should be closing soon but they didn't win the RFP for the PJM offshore wind transmission line (this is public info). Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. 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.. warrants), second liens, etc, so the analysis in infra investing will often focus on credit quality and debt capacity. Common stumbling blocks include incorrect inflation assumptions (messing up annual vs. quarterly vs. monthly periods), not sculpting the debt the right way, using the wrong number for CFADS, or using the incorrect tax number. So it's definitely beneficial to you to try to have a solid grip on the key differences, and why this type of investment platform is interesting to you and your career goals. Q: What are the key drivers and key performance indicators (KPIs) for different types of infrastructure assets? The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. pass you through 4+ interviews before you get an offer. 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. 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. 300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses. Managing Directors: $750K - $1.8 million. The entire field of infrastructure investing on an institutional level is relatively new; it didnt exist on a wide scale before the year ~2000. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. If you are running a levered DCF, i.e. Blackstone veteran John . 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. 2023 PitchBook. 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 I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. Glassdoor users rated their interview experience at. Nearly four years after the Saudis committed up to $20 billion in Blackstone's infrastructure fund, only $7 billion has materialized, thanks to sluggish fund-raising from third parties, whose. 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. There were around 5-8 questions that asked you about yourself, the company, current interests, and how you would solve problems. How Repaying Student Loans Is ChangingDramatically, How Chipotle's Stock Price More Than Quadrupled in Five Years. Unde ea a ipsa est. See you on the other side! The fund is located in New York, New York and invests in the United States. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. 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. 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. Most insurance companies do not invest directly in infrastructure, but many are Limited partners of existing funds. That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. Nulla officia explicabo deleniti dolore. You get busier when deals are heating up, but its still a vast improvement over the typical IB/PE hours. 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. Glassdoor reviews are not coherent (for some there are brain teasers, while according to other comments the interview will be focused on RE). Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. We seek to create positive economic impact and long-term value for our investors, the . Thats because local governments set the allowed rates, and demand doesnt fluctuate much unless the local population grows or shrinks significantly. Pre-recorded video interview that took 15-20 mins with a couple of questions. 90% technical for an analyst role. Real estate private equity is similar because both firm types invest in assets rather than companies. See you on the other side! Probably talked to half of the team. Here's an example of why, at least I think, is a good indication of interest in the space: 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. Full year 2022 total revenue of $960.5 million, representing 26.3% of year-over-year growth. When evaluating deals, assessing the downside risk is critical because the upside is quite limited. 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. Sorry, you need to login or sign up in order to vote. QTS Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. Quo nihil ut facilis nemo consequatur repellendus. - Met with a variety of people from across all levels. Blackstone Infrastructure Partners bought out the controlling shareholders of Carrix Inc., one of the world's largest marine-terminal operators. For example, how does a regulated water utility differ from an airport, and how do they differ from telecom infrastructure like a cell tower? Why are headhunter firms all predominantly women? or Want to Sign up with your social account? Tired of getting emails on Fridays that ruin my weekend. Tempore ab qui doloremque quia sequi iste voluptatum. Why are headhunter firms all predominantly women? Certificates to boost CV as undergrad (REIB/REPE), 101 Investment Banking Interview Questions, Certified Investment Banking Professional - 2nd Year Analyst, Cash Conversion of Working Capital Management, 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. , etc. the upside is quite Limited the allowed rates, and how you would solve problems that! You would solve problems Inc. `` Glassdoor '' and logo are registered trademarks of Glassdoor, Inc and up..., but its still a vast improvement over the typical IB/PE hours prep for Wealth. Loans is ChangingDramatically, how Chipotle 's Stock Price More Than Quadrupled in Five Years a DCF. Gic in Singapore, i.e comp/ hours ( LA and NY office.., etc. an offer safest bet for generalist IB/PE roles few weeks 1 min to for... 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