Citi IB - Energy and Renewable Energy Intership London

For your interview with Citi’s Energy and Renewable Energy division in London, here’s what you should focus on:

1. Types of Questions You Might Be Asked

• Behavioral Questions: These are common in London BB interviews, focusing on your motivation, cultural fit, and commitment to the role. Be prepared to explain why you’re interested in energy and renewables specifically.
• Technical Questions: Expect questions on valuation methods, financial modeling, and sector-specific metrics. For example:
  • How to value a renewable energy project.
  • Differences between valuing traditional energy assets and renewable energy assets.
  • Key drivers of renewable energy project success (e.g., capacity factors, subsidies, PPA agreements).

2. Key Concepts to Master

• DCF in the Energy Sector:

  • Understand how to project cash flows for energy projects, considering factors like production capacity, operational costs, and regulatory incentives.
  • Be familiar with terminal value assumptions, especially for projects nearing the end of their lifecycle.
  • Discount rate considerations: Risk profiles for renewable energy projects can differ significantly from traditional energy projects.

• Valuation of Projects Under Development or Nearing End of Life:

  • Under Development: Focus on construction costs, expected operational start date, and projected cash flows post-completion. Consider risks like permitting, financing, and construction delays.
  • Nearing End of Life: Analyze remaining useful life, decommissioning costs, and potential for repowering or asset sale.

• Comparable Company Analysis (Comps):

  • Identify relevant peers in the renewable energy space. Metrics like EV/EBITDA, EV/Capacity (MW), and P/E ratios are often used.
  • Understand how regulatory environments and geographic factors impact comparables.

• Sector-Specific Metrics:

  • Capacity factor, levelized cost of energy (LCOE), and power purchase agreements (PPAs).
  • Non-recourse financing structures and their implications for project valuation.

3. Demonstrating Genuine Interest

• Highlight your knowledge of the renewable energy sector’s growth drivers, such as the global energy transition, government incentives, and technological advancements.
• Be ready to discuss recent deals or trends in the renewable energy space, such as M&A activity or new project developments.

Good luck with your interview! Make sure to tailor your preparation to Citi’s specific focus within the energy and renewables sector.

Sources: Renewable Energy PE Overview, Renewable Energy PE Overview, DO BETTER WITH YOUR COLD EMAILS, https://www.wallstreetoasis.com/forum/investment-banking/renewable-energy?customgpt=1, Renewable Energy