Pension Fund Infrastructure Case Study Ldn

Based on the most helpful WSO content, here's what you need to know about infrastructure case studies for pension fund roles:

1. Case Study Format:

   • A 4-hour case study typically involves building a financial model and preparing an investment memo.
   • You might encounter a "Type 2A" case study, which focuses on a construction-stage infrastructure asset. This involves modeling returns for a fully/partially contracted asset, such as a solar project with a construction timeline and a long useful life.

2. Key Assumptions and Tasks:

   • You may be given assumptions like construction costs, timelines, capacity, and financing structures (e.g., 70% gearing for construction debt, refinanced with long-term debt sculpted to cash flows at a specific DSCR like 1.30x).
   • Tasks could include:
     • Building a construction spend profile and debt drawdowns.
     • Developing an operating model (generation profile, tax, depreciation).
     • Sculpting long-term debt and calculating post-tax levered returns.
     • Running sensitivities to assess risks and returns.

3. Investment Memo:

   • The memo will likely require you to summarize your findings, highlight key risks, and provide a recommendation based on the model outputs. Be concise and focus on the investment's alignment with pension fund objectives (e.g., yield, risk profile, and portfolio fit).

4. Preparation Tips:

   • Familiarize yourself with infrastructure modeling, especially for construction-stage and operating-stage assets.
   • Review resources like Ed Bodmer’s project finance exercises (https://edbodmer.com/project-finance-exercises/) to sharpen your modeling skills.
   • Practice creating clear, structured investment memos that address key decision-making criteria.

Good luck with your case study!

Sources: Interviewing For Infrastructure Investment Roles, Interviewing For Infrastructure Investment Roles