Suggested Reading list before project finance internship

Hello Monkeys,

I hope all is well. I have a quick favor to ask you all. I am a junior finance major with project finance summer internship lined up for this summer. As I get closer to summer, I am worried I may not be as prepared as I should be with technical knowledge. Could any working professionals supplement me with any recommended list of guides that will be helpful for project finance?

Thanks heaps in advance

8 Comments
 

"Could any working professionals supplement me with any recommended list of guides that will be helpful for project finance?"

I'm sure you took good notes during lecture, you'll be fine.

 

just go read the most mind-numbingly dry material you can get your hands on, about 300 pages of it, then do that again, then go get a dense contract which is 500 pages or so, read that, then do that again, then you'll have a sense of a day in the life in project finance. modelling, too much to cover, just be prepared to build massive models.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

I worked as a project finance analyst at a solar developer.. Project finance modeling is a good mix of corporate finance and i-banking. Although you probably know some of this, here is what you should learn. Hopefully you don't start immediately or youre in for a long few weeks. I'm surprised they hired someone who has little project finance experience

  • debt structuring
  • construction financing and term debt modeling
  • tax equity equity structures: sale-leaseback, flips, inverted leases
  • tax credit (and other incentive modeling), both on state and federal level...which includes depreciation (accelerated, bonus, applicable basis, etc)
  • proforma financial statements
  • timing of specific cash flows and tax credits
  • FIT, sREC, and other revenue specific incentives
 

I work at PE/PF fund (investing in renewable energy assets), the best advice I can give is not reading books, but practicing... Find Corality financial group (google) and look at their guides, one of the best resources out there, or go for a training course they offer (Disclaimer: I am not working for them).

 

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