MF Infra PE Model Tests
Currently at an MM Infra shop but hoping to utilize next year or so to increase competitiveness of my profile and try to lateral to one of the bigger funds.
For those that have recruited for MF Infra PE, what kind of model tests were you given? If there was a take-home test where the target is a PublicCo, would be great if you could give a few pointers on how to approach these and the level of modeling detail desired here.
Just trying to get a better sense of whether I should be spending my time working on asset modeling (renewable, telecom, transport, etc.) or on the typical 3-statement LBO models that appear to be the norm in general PE recruiting. Have had great asset-modeling experience to-date so not worried there but need to understand the extent of detail required for the latter.
Interested as well
PM me please
Interested in this
Bumptiy interested
similarly interested
Greatly varies. Brookfield/MIRA are project-based, Stonepeak/GIP are LBO-based
Bit of a naïve question but what does project based mean? You don't have to model out a full balance sheet for an asset?
Single asset. Construction period CFs, operating CFs, debt sculpting, returns & sensitivities, ongoing S&U
This is practically just the same a project finance modeling, no?
Yes although often combine some elements of LBO (Return analysis using IRR/MOIC) in addition to the credit modelling you’d do for PF.
Any transaction in which acquisition of a project from a developer coincides with financial close is basically an LBO, mechanically speaking. The developer is the management team in TargetCo, who almost always stays on with skin in the game, until some hurdle project return is realised (earn-out) or to deliver certain services to the project (construction and/or asset management). The difference is that you don’t see equity exit assumptions, as the deal is underwritten by the lender group with the expectation that the equity tranche will not change hands. Therefore, these exit assumptions are in internal fund-only models not in the financial close model.
Was gonna say, how exactly do you prep for the tests that are from firms that focus on an asset basis? It's not like you can do the 10-K method that people do for consumer and tech companies, due to heavy deailing. And even for LBO infra, whole companies wouldn't make too much sense (even in transportation or IPP players), given many times the GIP types are doing platform buyouts, less-so full enterprises
Asset based - deal reps
Not sure if I follow your comment on LBO infra. The businesses will be industrial-like so np setting up something standard
There aren't many resources to learn asset-level modeling. I think it's one of those things where you need to work on a few live transactions to get proficient.
Top funds in Europe tend to give asset based case studies for junior roles: Analyst/Associate
Any MF Project Finance modelling test examples going?
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