Urgent help!! infra model test
Hi all, have a model test soon for infra mega fund.
Supposedly focused on asset and 3 statements.
Anyone know of how I should prep - I have been focused mostly on sizing the debt with DSCR and gearing and also operating model builds for assets (based on capacity, hours, etc.). What are the other Nuances for tests like these? Anyone know of any model answer templates online or they have?
Thanks!
Bump
Next investor IRR for exit, proper depreciation schedule with annual additions and various sensitivities maybe.
how long do you have to do the test?
Re: the operating model build, from what you said about capacity / hours, I'm guessing this is power generation / related.
I'd be surprised if it isn't heavily simplified for you. If you really have to go and understand how exactly they get paid it's pretty insane - ie. with some thermal generation plants there's stuff like heat rate, availability & max downtime (allowed, scheduled, unscheduled), etc. I doubt you'll be recreating a contract from scratch even if you had a few days to take it home.
It's still price x volume so for price (assuming a asset that was built under a contract), I would guess that the following details would be provided)
- base rate + any step ups / downs (ime, down, as the initial years compensate the investor more for having built the asset)
- any passthroughs (CPI, fuel, FX costs, etc)
- step ups / downs for volume (sometimes they will only pay you a certain rate for a max # of hours, then reduce the rate, or they increase the rate)
- other various contingencies
So lots of min, max, if, etc, but this would be an extremely granular test already imo.
I would expect the drivers of your volume projections to also be provided at the very least
Then for operating costs:
- Fuel costs (often passthrough. If they're mean they might make this conditional on some other stat, which sometimes happens irl). At worst they have to give you the base fuel rate and then price projections (as you will often get those projections from consultants anyway).
- Maintenance costs (major / routine)
- Other operational costs (usually no big deal)
Like with the revenue part, the difficulty would be contingencies - ie. if you have to pay penalties for not meeting a certain availability threshold etc
I interviewed with an infra fund once and they gave me a LBO, did they actually say it would be infra related?
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