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What is your background? If you are an infra banker, your preparation would look really different vs. if you work in another sector. I switched from REPE and did the following:

  • Reach out to HHs with a story on why Infra and firm preferences
  • Reach out to firms in the space that you haven't come across through HHs
  • Prepare basic modelling tests - I found all tests I did fairly simple/intuitive but not being used to Infra modelling vs. RE, I did struggle with certain differences (especially debt facilities/refis, which you don't care about when looking at shorter hold periods in non-infra PE)
  • Read research reports from IBs on 2 or 3 sectors. You don't need to know every industry in and out but I was asked in virtually every interview what trends I see in the Infra space and what sector I would invest in
  • Don't forget your story and why your joining this fund would mean that "it all comes together" for you. I mentioned that I had tried to get into the Infra space before but ended up in RE teams in BBs
  • Focus on culture - infra funds are generally a bit nerdier than e.g. RE and think more long-term, i.e. they really want you to stick around (in my experience). Both firms I got offers from asked me back in because they were worried about fit (I never had any such discussions in the BBs I worked at) - interestingly, one fund thought I was too aggressive given my BB background (i.e. too American/cut-throat), whereas the other thought I was too soft.

Note I'm based in Europe so recruiting here is much less structured than in the US. I actually got one offer through a HH but accepted an offer from a firm that I contacted myself.

 

Expect infra interviews to be similar to corporate interviews. Infra PE funds have mandates to do corporate buyouts and they can and do compete in the same processes as traditional PE. A lot of the time they’re looking at classic LBOs acquiring 100% of the equity. There can be more infra-specific structuring, especially around midstream and some more real-estate-ish debt structures around data centers for example. But at the end of the day, it’s buying cash flow entities and selling them for IRRs. Returns targets generally lower, but top infra funds like GIP produce some crazy good returns (25%+ IRR) with enormous funds.

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