Difference between Infra PE vs traditional pe modelling

Hi all,

I have a modeling exam and interview coming up for an Infra-focused PE.

For the purpose of passing the test, I was wondering about the difference between infra PE vs traditional PE modeling exam. 

I would like to ask how your experience was. What variables/inputs were you given with? From my understanding the former involves more project finance-focused elements while the latter is more centered around LBO stuff...

For those of you who have gone through recruiting processes, I would greatly appreciate your insights...

Private Equity Interview Course

  • 2,447 questions - 203 PE funds. Crowdsourced from 750k+ members
  • 9 Detailed LBO Modeling Tests and 15+ hours of video solutions.
  • Trusted by over 1,000 aspiring private equity professionals just like you.

Comments (3)

Apr 6, 2021 - 6:19am

This might be too high level and I'll let others answer in more detail.

The biggest differences in infra modeling vs LBO are:

  • time horizon being modeled is longer (10 years +)
  • revenue certainty is higher (long term contracts)
  • value creation comes from operating the asset better / controlling the cost base
  • cost of capital important driver of ability to bid for an asset
Apr 6, 2021 - 8:54am

Depends on the firm - if they invest more in platforms, the test will be a standard LBO test just with an Infra target (ex: port, trucking company, airline, etc)

if they invest in hard assets it's building a project finance model - corality has good intro materials.

Start Discussion

Total Avg Compensation

April 2021 Private Equity

  • Principal (7) $694
  • Director/MD (15) $627
  • Vice President (63) $371
  • 3rd+ Year Associate (66) $267
  • 2nd Year Associate (127) $250
  • 1st Year Associate (266) $224
  • 3rd+ Year Analyst (24) $164
  • 2nd Year Analyst (60) $136
  • 1st Year Analyst (171) $117
  • Intern/Summer Associate (18) $71
  • Intern/Summer Analyst (191) $60