Infra PE financial modelling internship. Need advice
So recently I was offered an internship at an infra/energy PE fund based in Germany. The internship is for financial modelling exclusively, with potential for full time employment. The team only works on constructing new investment models, maintaining existing ones for asset management, and building new exit models as well as fund finance analytics. They don’t do any DD or origination or anything like that. They get directions from the investment & AM teams and sometimes vendors, off-takers, etc, but realistically not from the sellers/buyers or investors. The job doesn’t sound bad, considering I also just finished an infra PE internship myself (though on the investment side). I’m just curious if this modelling experience can be nice to have for lateraling to investing FO positions down the line or if it’s going to stick out just as back/middle office support role. Not that I have anything against the job itself, I find modelling quite exciting and the idea to separate modelling from other work streams sounds great considering the exhausting DD and negotiations on infra deals. The issue is, id like to keep my options for investing or FO roles open, that’s all.
I’m unemployed, no other offers atm.
Need your thoughts!!
Based on the most helpful WSO content, here's what you need to know:
Relevance of Financial Modelling in Infra PE:
Financial modelling is a highly valued skill in infrastructure private equity. Infra models are particularly complex and modeling-intensive, making this internship a strong technical foundation. Many infra PE funds prioritize candidates with robust modelling experience, as it is critical for evaluating deals, structuring financing, and managing assets.
Positioning for Front Office Roles:
While the role you described focuses exclusively on modelling and lacks exposure to due diligence (DD), origination, or negotiations, it can still serve as a stepping stone to front office (FO) investing roles. The key is to leverage the technical expertise you gain and demonstrate how it applies to investment decision-making. Highlighting your ability to build and maintain complex models, as well as your understanding of asset performance and exit strategies, will be crucial when lateraling.
Potential Perception as Back/Middle Office:
There is a risk that this role could be perceived as more of a support function, given the lack of direct involvement in deal origination or investor interactions. However, this perception can be mitigated by emphasizing the strategic importance of your modelling work and how it directly impacts investment decisions. Networking within the firm and seeking opportunities to collaborate with the investment team can also help bridge this gap.
Keeping Options Open:
Since you are currently unemployed and have no other offers, this internship is a solid opportunity to build a specialized skill set that is in demand in infra PE. It’s easier to transition to FO roles from within the industry than from outside it. Use this time to excel in modelling, network actively, and position yourself for future opportunities.
Additional Resources to Strengthen Your Profile:
In summary, this internship is a valuable opportunity to enhance your technical skills and position yourself for future FO roles. While it may not provide direct deal experience, the modelling expertise you gain can be a strong asset if leveraged strategically.
Sources: Interviewing For Infrastructure Investment Roles, Infrastructure Private Equity, Family office Private Equity - help, Summer Analyst Reflection, Is it too late to find an internship now?
Anyone?
I work in infra so sharing my two cents here.
1. Modelling may be exciting for you at this early stage of your career, but you will quickly get bored. Yes building one or two models from scratch can be super satisfying and make you feel like a finance genius, but a some point, you will certainly have enough of doing models again and again. Just think about it: your job every single day of the year will be to do modelling. Nothing else. Does that really sound attractive for you?You will be seeing super interesting assets and all, but the only thing you’ll ever do is just the model, no other contribution to the execution process or portfolio management… which takes me to my second point.
2. Infra investing is more than just modeling.There’s a reason it is given to the analysts and the associates… modeling is just a part of the investing process. In that team you won’t get any exposure to the sourcing, contractual analysis, technical and commercial sides, negotiations and overall deal execution.As you climb up the ladder, that’s where you are expected to perform! Be able to source, screen, and execute deals. You won’t learn any of that in a modeling team.
3. You have interned in another infra fund before so you should be able to land a position in a traditional infra PE team.
If you are only seeking an internship, the OK go for it, will be a great line on your resume that shows you know how to model - but don’t go for a full time in that team… you’ll regret it.
I assume the firm is Aquila?
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