Infrastructure PE interview

Based on the most helpful WSO content, here's what you need to know about preparing for an Infrastructure Private Equity (PE) interview:

1. Behavioral vs. Technical Questions:

   • The ratio of behavioral to technical questions can vary depending on the firm, but you should expect a mix of both. Behavioral questions are crucial as they assess your fit for the team and your ability to work in a collaborative environment. Examples include:
     • "Why private equity?"
     • "Tell me about yourself."
     • "What makes you a good teammate?"
     • "What are your strengths and weaknesses?"

2. Technical Questions:

   • Since Infrastructure PE is heavily cash flow-based, you can expect a strong focus on DCF (Discounted Cash Flow) and LBO (Leveraged Buyout) modeling. These are core skills for evaluating infrastructure investments, which often involve stable, predictable cash flows.
   • Be prepared to:
     • Build or interpret a basic LBO model.
     • Discuss the components of a DCF model, including assumptions for cash flow projections, discount rates, and terminal value.
     • Analyze historical and projected growth, profitability, and cash flow stability.
     • Evaluate the diversity of revenue streams and the sustainability of margins, which are critical for infrastructure assets.

3. Case Studies:

   • You might be given a case study where you're asked to analyze a CIM (Confidential Information Memorandum), build a basic LBO model, and write an investment memo. This could include:
     • SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
     • Identifying key differentiators of the business or asset (e.g., unique technology, regulatory advantages, or long-term contracts).

4. Preparation Tips:

   • Practice LBO and DCF modeling extensively. Resources like the Private Equity Interview Bootcamp or the Private Equity Master Package on WSO can help you refine these skills.
   • Have a few backup stories ready for behavioral questions to demonstrate teamwork, problem-solving, and leadership.

By focusing on these areas, you'll be well-prepared to tackle both the behavioral and technical aspects of an Infrastructure PE interview.

Sources: Private Equity Interview Questions - 13 Topics to Know, Private Equity Interview Questions - 13 Topics to Know, Interviewing For Infrastructure Investment Roles