PSP Model test

For an infrastructure team modeling test, based on the most helpful WSO content, here’s what you need to know:

1. Types of Case Studies:

   • Traditional LBO Model: Some infrastructure funds may administer a test similar to what you'd see at a buyout shop. This involves building a 3-statement LBO model, often accompanied by a PowerPoint deck. You’ll typically have 3-4 hours to complete this.
   • Construction Stage Infrastructure Model: This is a common test for infrastructure roles. You may be given assumptions for a fully or partially contracted infrastructure asset and asked to model out returns. This type of test also usually comes with a 3-4 hour time limit.

2. Preparation Tips:

   • Practice LBO Models: If you’re not familiar with infrastructure modeling, practicing traditional LBO models can help you get comfortable with the structure and excel capabilities required.
   • Focus on Infrastructure-Specific Elements: Infrastructure modeling often includes unique aspects like debt facilities, refinancing, and longer hold periods. If you’re transitioning from real estate or other sectors, pay attention to these differences.
   • Use Resources: Ed Bodmer’s project finance exercises are highly recommended for infrastructure modeling. You can find his resources here: https://edbodmer.com/project-finance-exercises/</a">Ed Bodmer Project Finance Exercises.

3. Key Skills to Demonstrate:

   • Excel Proficiency: Show your ability to handle complex financial models efficiently.
   • Understanding of Infrastructure Trends: Be prepared to discuss trends in the infrastructure space and articulate your investment thesis for a specific sector.
   • Clarity Under Pressure: Practice completing models under time constraints to avoid panicking during the test.

4. Additional Advice:

   • Prepare Your Story: Be ready to explain why you’re interested in infrastructure and how your background aligns with the role.
   • Research the Firm: Understand the firm’s focus areas within infrastructure to tailor your approach.

Good luck with your interview! If you need more specific guidance, feel free to ask.

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