Modelling test Infrastructure (90 min) - DC Advisory

Based on the most helpful WSO content, while there isn't a specific breakdown of DC Advisory's Infrastructure modeling test format, here are some general insights and tips for preparing for such tests:

1. Focus on Core Infrastructure Modeling Skills:

   • Be prepared to build or modify a financial model for infrastructure or project finance assets. This could include tasks like creating a 3-statement model, DCF analysis, or working on project-specific metrics like DSCR (Debt Service Coverage Ratio) or IRR (Internal Rate of Return).

2. Time Management:

   • With only 90 minutes, the test is likely designed to assess your ability to work efficiently under time pressure. Practice building models quickly while maintaining accuracy.

3. Key Areas to Review:

   • Project Finance Concepts: Understand debt structuring, cash flow waterfalls, and sensitivity analysis.
   • Circular References: Be ready to handle circular references in models, such as interest during construction or DSRA (Debt Service Reserve Account) calculations.
   • Excel Proficiency: Ensure you're comfortable with Excel shortcuts, formulas, and possibly VBA for dynamic modeling.

4. Practice Resources:

   • Utilize free resources like the WSO Free Financial Modeling Series, which includes lessons on DCF, M&A, LBO, and Comps modeling.
   • Explore advanced modeling techniques, such as using VBA User Defined Functions (UDFs) for solving circular references, as mentioned in WSO threads.

5. Mock Tests:

   • While no specific past tests are available, practicing with general infrastructure or project finance modeling tests can help. Websites like edbodmer.com and F1F9 offer exercises and e-books on project finance modeling and optimization.

6. Interview Process Insight:

   • Some candidates have mentioned that infrastructure modeling tests often simulate real-world scenarios, requiring you to analyze and present key outputs like IRR, NPV, or debt capacity.

If you're looking for more tailored advice, consider reaching out to the WSO community forums, where professionals who have gone through similar processes might share their experiences.

Sources: Q&A - Infrastructure PE & IBD, Q&A - Infrastructure PE & IBD, Interviewing For Infrastructure Investment Roles, Interviewing For Infrastructure Investment Roles