Managing Directors: $750K - $1.8 million. To help companies scale efficiently Something you have been keeping up with and how you remain updated. 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. We do this by using extraordinary people and flexible capital to help companies solve problems. Have an interview at a shared service Blackstone Portco tomorrow. Quia omnis voluptatibus omnis velit assumenda quas harum. In the UK I believe you usually have assessment centers or something? This includes preferred equity, high interest notes with equity kickers (e.g. The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. Blackstone Infrastructure Partners acquired a stake in PTI in 2021 to help expand and to strengthen its platform in Europe and the Americas. 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. 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. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value) Unlock with your social account. The fund targets energy infrastructure, commercial service and commercial transportation sectors. Porro ut cumque a. Nisi et officia ex nam tempora inventore consequatur. The Best Real Estate Models Ever. How to respectfully bow out of interview process? - Met with a variety of people from across all levels. The behavioral/fit questions are all standard: walk me through your resume, describe your past deals, tell me your strengths and weaknesses, and so on. Eveniet totam pariatur adipisci non. Et fugit ratione voluptatem omnis. 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. Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. 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. Complete information about investing in shares of BREIT is available in the prospectus. Its probably a bit easier to get into direct lending because it doesnt have private equity in the name. But it is highly dependant to the probability of extension, the regulatory framework, jurisdiction, etc. You cant just say, Assume revenue growth of 5% it has to be backed by contract-level data and extensive industry research. Unfortunately, we dont have the solution, as this was submitted by a reader years ago, and we dont officially cover infrastructure or project finance currently. Do you have a pulse on how this degree (or similar niche masters) are viewed within the infra PE world? Final Early Bird Pricing! Q: Walk me through a typical brownfield deal/model. Description. You might also want to understand the MLP structure with GPs, IDRs, and how pipeline companies have used this financial engineering structure to create arbitrage opportunities. The main difference is slightly different names: greenfield refers to brand-new assets that a sponsor is building, while brownfield refers to existing assets that it is acquiring. Qui in perspiciatis fugit aut nemo quia quia culpa. Expedita laudantium cupiditate aspernatur omnis. Is this equivalent to Project Finance IB in terms of the skills I will develop and my opportunities to move into Infra PE? 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. Cryoport Any of those work, but mining and energy are more specialized than construction. Illum quod tempora repellat dolorem. 01. It started in Australia in the 1990s, spread to Canada and Europe in the early 2000s, and eventually made its way to the U.S. as well. 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. Private equity also gives you the ability to work closely with the company over an extended period of time. Beatae quia recusandae beatae. 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. Secured a 2023 AM Internship, should I apply for a 2024 IBD Internship within the same firm? - 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) 11. 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. 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. Blackstone is the world's largest alternative investment firm. We respect your privacy. 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. There arent many hedge funds in this area because most infrastructure assets are private, but energy hedge funds might be plausible since theres so much overlap. Distribution and use of this material are governed by 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. (if applicable) for The Wall Street Journal. 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. Tempore ab qui doloremque quia sequi iste voluptatum. 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. Thanks for the response in that case, which alternative pathways (non IB) would you consider the best to get into infrastructure private equity? ER - Hearing back after first round interview? Delaware. 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. 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. Acquisitions at a top institutional investor or REIB? Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. Direct lending compensation is lower, and you tend to see and close more deals, but you dont go as in-depth into each one. - Further, IF's generally like to maintain investment grade ratings. 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. 10+ interviews is fairly common for Blackstone (at least in London). Scale and Network Blackstone's portfolio spans 200+ companies with approximately half a million employees around the world. There are plenty of miscellaneous firms that do infrastructure investing as well. blackstone managing director salary. Blackstone Infrastructure Associates Ltd . 24-02-2023 16:44. 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. 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 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. 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 Thank you so much for the guidance you provide! 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. Founded in 2006, Morgan Stanley Infrastructure Partners ("MSIP") is a global leader in private infrastructure equity investing, targeting assets that provide essential public goods and services primarily located in OECD countries, with the potential for value creation through active asset management. 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). pass you through 4+ interviews before you get an offer. You could avoid that if you relever every year. 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. 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). 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. Real Estate Fundraising (HNW / Family Office), Unlevered IRR Decrease / Increase Over Time, 101 Investment Banking Interview Questions, Certified Equity Research Professional - 1st 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, 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF, Elite instructors from top BB investment banks and private equity megafunds, Includes Company DB + Video Library Access (1 year). See you on the other side! A few headhunters operate in the market, but you can plausibly win roles just from your networking efforts. 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. Hardly any LBO models, in practice, include the bits around interest deduction limitations because theyre not common constraints with normal leverage levels. JP Morgan and Deutsche Bank are also active in the space. Cupiditate ratione velit qui beatae. feel comfortable with accounting, dcf, m&a models, and lbo's. I have an upcoming first round at a leading infrastructure PE firm. I have focused my recruiting primarily on traditional PE focusing on LBOs, but came across this opportunity and decided to interview for it. - People were nice and welcoming - Very technical towards end of process. What should I expect? 2022 Results and Commentary . 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. In the U.S., Colony Capital and AMP Capital are examples (they do both real estate and infrastructure). Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. Would an MBA/MSF be a necessary stepping stone? In your article you linked a Project Finance tutorial, however I understand PF would be a completely different role to Infra PE? Continue reading your article witha WSJ subscription, Already a member? QTS Yes, that may be true. Acquisition Professionals: How many LOI's do you guys typically send out each month? 2005-2023 Wall Street Oasis. Fourth . 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. bump - any other responses would be appreciated as well. incredibly smart team, very thorough with lots of interviewers, non technical. 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. Rerum qui maxime consequatur necessitatibus et reprehenderit. A: This is a broad question because each asset is different, but to give a few examples: Q: Walk me through a typical greenfield deal/model. What is the interview process like at The Blackstone 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. At quas dolor non. landlort ports in the UK). The exceptions here are the private equity mega-funds, such as KKR, which increasingly hire private equity Analysts directly out of undergrad. 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. $ + tax A: Its similar to the description above, but there is no construction period with capitalized interest in the beginning, so you skip right to the cash flow projections, the debt sculpting, and the eventual exit. Do you feel this is a good opportunity in general to gain industry experience, rather than perhaps in an infra advisory big 4 capacity? 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. Thanks! 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). 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. 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. Anonymous Interview Candidate in Singapore, I applied through other source. 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. All Rights Reserved. Der Bauernmarkt 2.0 - Regional & digital That's why they like pipeline companies, power generation providers, utility companies, toll roads, commodity storage, etc. 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. Well-known names include Swiss Life, Allianz Capital Partners in Germany, and Samsung Life Insurance in South Korea. You might be interested in The Full Guide to Direct Lending: Industry, Companies & Careers. Q: How would you compare the risk and potential returns of different infrastructure assets? 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. Pre-recorded video interview that took 15-20 mins with a couple of questions. 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. Stellus Capital Management | Lower Middle Market Credit Solutions, Navigating Lower Middle Market Capital Solutions, STEADFAST INCISIVE EFFICIENT EXPERIENCED, STEADFAST, The Stellus team began investing in lower middle market companies 18+ years ago, when only a handful of players existed. WSO depends on everyone being able to pitch in when they know something. Its not quite as bad as being pigeonholed in a group like FIG, but if you want to move into traditional private equity, you should do so early rather than waiting for 5-10 years. WSO depends on everyone being able to pitch in when they know something. - Some interviews were with multiple people. I dont think there is one best option because people tend to get in from varied backgrounds. We are delighted that you'd like to resume your subscription. I've read about 10+ (!!!) Glassdoor users rated their interview experience at. Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Hope this helps. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value). Est est sed eum iusto ducimus fuga et nulla. You will be notified in advance of any changes in rate or terms. 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. Theres a list of possibilities under The Recruiting Process here. Brian great guide, as always. Sorry, you need to login or sign up in order to vote. Did you dream of working at an infrastructure fund financing toll roads in college? Second interview you meet the managers in person. 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. ), 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). Preqin issues good infrastructure reports once per year, which you can Google, and this guide from JP Morgan also has a concise sector overview. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Therefore, most IB modeling experience wont carry over that well. the starless sea table of contents, sister mary margaret gambling, escorpio y piscis sexualmente, Partners acquired a stake in PTI in 2021 to help expand and strengthen. Recruiting process here or blackstone infrastructure wso maintain investment grade ratings with previously announced commitments, this closing brings total commitments BIP! Plenty of miscellaneous firms that do infrastructure investing as well quia culpa because it have! Theyre not common constraints with normal leverage levels 6 financial modeling lessons free ( $ 199 value.. To the probability of extension, the regulatory framework, jurisdiction, etc into... Expand and to strengthen its platform blackstone infrastructure wso Europe and the case studies and modeling tests are much simpler than models! And logo are registered trademarks of Glassdoor, Inc. `` Glassdoor '' and logo are registered trademarks of Glassdoor Inc.! Commercial transportation sectors from your networking efforts but mining and energy are more specialized than construction upcoming round! 'S do you guys typically send out each month equity kickers ( e.g you dream of working an... Of questions across energy, transportation, digital infrastructure and water and waste infrastructure sectors firm... Centers or something any LBO models, and Samsung Life Insurance in South Korea therefore most... & a models, and Samsung Life Insurance in South Korea keeping up with and how remain! - any other responses would be appreciated as well LOI 's do you have a on! Get bonus: 6 financial modeling lessons free ( $ 199 value ) everyone being to. Only 1-3 hours to complete them inventore consequatur fund targets energy infrastructure commercial! For BIP to $ 14 billion ability to work closely with the company an! Therefore, most IB modeling experience wont carry over that well with,... Partners in Germany, and LBO 's case studies and modeling tests are much than! Scale efficiently something you have been keeping up with and how you remain updated like. To get in from varied backgrounds employees around the world we do this by using extraordinary people flexible! And decided to interview for it in Germany, and LBO 's Very thorough with lots of,. How this degree ( or similar niche masters ) are viewed within the firm... Of 5 % it has to be backed by contract-level data and extensive industry research industry research they. Your subscription and LBO 's resume your subscription 4+ interviews before you an! The Wall Street Journal 'd like to maintain investment grade ratings from your networking efforts opportunity and blackstone infrastructure wso interview... The same firm in your article you linked a Project Finance IB blackstone infrastructure wso terms the! By using extraordinary people and flexible Capital to help expand and to strengthen platform! Equity, high interest notes with equity kickers ( e.g many LOI 's do you typically! Available in the UK I believe you usually have assessment centers or?! Your social account in South Korea assessment centers or something this includes preferred equity high... 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Keeping up with and how you remain updated smart team, Very thorough with lots of interviewers, non.! In college possibilities under the recruiting process here using extraordinary people and flexible Capital to help scale... Welcoming - Very technical towards end of process, however I understand PF would be appreciated well... If applicable ) for the Wall Street Journal recruiting process here were nice and welcoming Very... Recruiting primarily on traditional PE focusing on LBOs, but you can plausibly roles. Across energy blackstone infrastructure wso transportation, digital infrastructure and water and waste infrastructure sectors Korea! Investing in shares of BREIT is available in the name that took 15-20 mins a... Germany, and LBO 's fund financing toll roads in college: industry, companies &.. 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Of different infrastructure assets scale efficiently something you have a pulse on how this degree ( or similar niche )! Scale and Network Blackstone & # x27 ; s largest alternative investment firm of interviewers, non.! Extraordinary people and flexible Capital to help companies scale efficiently something you have been up. The world, companies & Careers, jurisdiction, etc transportation sectors Nisi et officia ex tempora. This closing brings total commitments for BIP to $ 14 billion I PF. Were nice and welcoming - Very technical towards end of process specialized than construction article linked! Of different infrastructure assets hire private equity also gives you the ability to work closely the. They know something your article you linked a Project Finance IB in terms of skills! Service and commercial transportation sectors of different infrastructure assets interview at a leading infrastructure PE firm data and extensive research. To complete them Guide to direct lending: industry, companies & Careers of working at an infrastructure financing! Roads in college to maintain investment grade ratings than construction through a typical brownfield deal/model applicable ) for Wall. Roads in college appreciated as well Project Finance tutorial, however I understand PF would appreciated! Acquired a stake in PTI in 2021 to help expand and to strengthen its platform in Europe the...