Hi all, I'm being asked to model the levered and unlevered returns for a Greenfield solar project in LatAm. The project life IRR is easy of course, but I don't know what you all might recommend for how PE funds would look at a project like this in terms of exit multiples - the asset would be fully operating, fully contracted with an investment grade rated off-taker (note the project itself would be in a non-investment grade LatAm country) but project is fully in US$. I'm currently modelling that it an exit in Year 8 at 10x (unlevered) FCF, is that in the ballpark? Thanks in advance for the
18 Oct 2021
Can any kind soul please share the thought process behind debt sizing based on dscr? I have found myself in a weird situation of being in infra investing on the buy side with no prior background in project finance. My firm looks to buy loans post financial completion so we are never part of the structuring process in determining loan tenor and debt sizing. I am looking to transition into a traditional pf underwriting route however I don't seem to be hitting the spot when the interviewers ask how would I analyse the debt sizing dscr with and without merchant risk (the most is i understand the
14 Sep 2021
I've been trying to break into project finance and would like your guys' input. A lot of positions I've seen online (both in project finance and infra PE) say the CFA is a nice to have, so I signed up to take L1 this December (whether that actually happens is another story). However, as we all know, though the CFA is well-regarded, it's not aimed at every industry, and other than being a "nice to have" to check a box, I don't see how it would be all that useful in infra overall. So I'm considering pushing L1 to February and learning project finance modeling. I don't necessarily feel confident
29 Sep 2020
Hi all, I am late stages in an interview process with a big 4 Infrastructure Advisory team and the interviewer mentioned the next stage will be a 2 hour modelling test then an interview to discuss the analysis/recommendations. I am from Australia and the interviews so far have not been in person due to the COVID environment would anyone have ideas on what to expect here? They do a lot of renewable energy deals (solar, hydro) so I have been looking at some examples but I am curious given the 2 hour time frame what would be expected? I am imagining modelling a 20-30 year contract based on the
01 Nov 2020
Hi all, Long-time reader, first-time poster from Singapore. Quick summary of my background: Graduated in 2018, and started working for the Infrastructure Advisory team of a Big 4 firm in 2019. It piqued my interest in the infrastructure financing space, but growing in the role was tough, as our team handed off the modelling work on our mandates to the Valuation guys, so there wasn't a whole lot of skill development (especially in modelling). It's proven to be a significant setback when interviewing for other positions, as employers already expect me to have decent modelling capabilities
10 Feb 2021
Hard to pick out the right forum for this one. Anyway, for those that are interested in working at project finance lenders or infra PE, how is federal government experience looked upon? More specifically, how are the following agencies regarded: * DFC (what OPIC morphed into after they merged with USAID) * Export-Import Bank (they have a structured finance and project finance team) * DOT's Build America Bureau that administers the TIFIA loan program * The Dept of Energy has loan programs across a bunch of offices There's some positions available I'm interested in the above that seem like they
16 Jul 2020
Studying to try and find a career in project finance. Hoping to get an interview about P&U. Haven't seen much in the way of PF specific models/cases for interviews. Is a DCF something that may be asked? IRR/NPV analysis? Any help or advice appreciated.
10 Feb 2021
tl;dr Is doing infrastructure Project Finance to break into infrastructure M&A a good plan? I have been looking to break into infrastructure M&A (as an off-cycle intern) recently but am having a hard time, mostly because I have no infrastructure experience. Quick background: Econ graduate from a top 10-15 university in the UK. Have been working in corporate finance the last few months since graduating. I was recently rejected from a role but was given the suggestion of applying for an entry level Infrastructure Project Finance role before reapplying to Infrastructure M&A after a year or two. I
22 Nov 2021
I've been on the idea of transitioning into project finance from public finance for some time now at the associate level. It seems like the project finance space isn't hiring a lot right now with COVID. Is this a realistic transition or would I need to consider getting my MBA? Do teams generally hire from summer analysts and not really at all from experienced candidates outside the field? Lastly, does anyone have any insight on Sol Systems and how they operate in the space? Thanks!
11 Jul 2020
I majored in politics abroad (2nd best university) and speak 4 languages. After graduation I did an internship in an investment company (top finance investment company in the country) doing finance project (oil&gas) without any finance knowledge. I self-studied basic accounting and financial modelling. And 3 months later I had an offer to stay at the company but left due visa issues and now I'm back home unemployed (I'm European). I'm taking some online courses in accounting, corporate finance and investment appraisal since I want to work in project finance/infrastructure fund/M&A or something
13 Dec 2017
Does anyone have any insight on KPMG's Infrastructure Advisory group? It looks like they are in a good spot within the league tables for financial advisers in the space. But also looks like they do model auditing. What would the differences be working for a bank, versus big 4, that does financial advisory? I've heard advisory is often more interesting than a lending role. Not sure if comp would be similar to banks in project finance? Or hours? ANY insight would be greatly appreciated! Thanks!
09 Dec 2020
Just had a 2nd round interview with a boutique specializing in renewable energy project finance. The MD asked me as to what value will I bring to the firm? I replied that Energy Investment Banking sector requires engineering expertise and also financial skills; therefore I believe that I will bring a unique skill-set to the table and add lots of value( have both degrees). The combination of engineering and financial skills will enable me to understand the structuring and financing and to also help me in determining the risk. But he blasted me by saying that I hadn't done my homework and asked me if I ever looked at their website. His point was that almost everybody at his firm had an engineering degree.
25 Sep 2010
I have read most of the project finance exit opps threads here and I notice: 1) the lack of response from the WSO community 2) if there is a response, the answer is PE energy/infra funds Because of 1), I want to try again, as there might be other people like me, an explorer in this field. My concern is 2). From someone not in the field, when it comes to how PE energy/infra funds profile those who want to get in, how does project finance analyst look against leveraged finance and energy/infra M&A analysts? When commenting between PF, LF and M&A, if answers can be themed around factors such as: - skill set - intensity of work - identity (e.g. how the street views PF analysts?)) ... that would be appreciated.
29 Dec 2012
What kind of exit opportunities at Associate 2/3 level in Project Finance with a top player? Post- Project Finance Jobs While many people go into project finance expecting that they will build a career there, it's not unusual to want to make a move for further career development. Some moves will be easier than others. As always, any job change requires aggressive networking and strong interviews. WSO members shared their insights and advice on possible exit opps for those currently working in project finance: Infrastructure funds Power/energy fund Principal investing group (on the debt side)
30 Oct 2010
I'm a career switcher who just finished my 1st year MBA at a target school. I still don't know much about finance but definately know a lot more than before. People always talk about how important transaction experience is. Can someone tell me whether what I'm doing right now as an Intern in Structure Finance will get me transaction experience? The firm that I'm with this summer invests in different sectors of emerging countries, such as banking, infrastructure, energy, etc. PE firms or the company itself would approach the Structure Finance team for borrowing $ to funds their projects. I'm now working on two live deals, and we're lending 100MM to each. My job as a summer intern is the following:
14 Jun 2011
Hi everybody, Since 2 years ago I have felt very attracted to project finance and IB in general. I took a class in project finance, and read some books, but I don't have an economics/finance background. I am currently a PhD candidate at a top university in China, and recently got a scholarship to go to HK PolyU on exchange for one year. I was planning to use that time to prepare the CFA and network and research about my opportunities to break into project finance, without coming from a finance background(I have a bachelors in architecture, master in construction engineering, and my current PhD is in management science at the school of civil engineering. Have lived in Spain, US, Japan and China).
12 Apr 2014
I received two offers from Macquarie and BNP Paribas as an associate in their project finance team. Both teams are cordial and offer similar compensation. Who would you guys pick? Somethings to considered are work/life balance and long-term career growth. Was wondering if both banks offer any perks and benefits that are worth mentioning? Does anyone have first-hand knowledge working for both banks and how they are like? Thank you!
21 Nov 2013
It's a challenging deal environment out there for infrastructure investors. Particularly for credit investors, as borrowers can tap into so many sources of cheap credit: 1. For public companies, since bond markets are rocking there is no interest in a non-recourse financing with an asset manager. 2. Private borrowers: if you can tap into the bank debt market, credit is being given away by banks without any prepayment penalties, and the Term Loan B, US Private placement, and 144a market are all on fire. Relative value is very hard to come by. Anyone else out there dealing with this?
28 Feb 2021
Hey guys, I got an offer (SA) for Morgan Stanley's Global Capital Markets division, as they separate it from traditional investment banking. It's made up of 5 parts--ECM, DCM, Clients Solutions, Lev Fin and Project Finance. I want to do a great job this summer and try and move into actual IB, ideally M&A, for full time. I've narrowed my top choices within GCM down to Lev Fin and Project Finance, and I'm wondering which would better position me. Normally, Lev Fin would be the easy choice, but MS Lev Fin doesn't do any modeling. Project Finance is the only group within GCM that does--very
18 Apr 2016
Hi I will be starting as a full-time analyst at a BB in their Public Finance IB group (firm usually ranked top3 in muni underwriting). I was wondering how I could break into Infrastructure PE later on in my career? I know Public Finance and Infrastructure Investing have slight similarities and major differences, so I wanted to just start preparing myself to end up in Infra PE. Thank you in advance for the insight.
25 May 2020
Hi Everyone, I recently graduated from non target with dual Finance and Economics degree (3.6 GPA). I got a job at small valuations company (around 100 people). My colleagues keep telling me that this is project finance group. However, from what I read on this forum this is not "real project finance". My job involves reading a bunch of documents (PPAs, Hedge Agreements, Interconnection Agreements etc) and "valuing" those projects. However, the modelling is limited to plugging in the numbers from our clients models (which we are supposed to "analyze" as well, but we are not involved in any work
27 Jun 2019
I've been working in project finance for a full 2 years now and I want to get into M&A. I have a strong interest in companies within the STEM fields and would love to join a team that has anything to do with that general area, whether it be new tech, aerospace, physics. I really think the field of finance needs to focus more on long term returns rather than the feasibility of realizing returns within our own lifetimes. A lot of great companies and projects fail to get funding due to the uncertainty of their success and while I understand that returns are everything within M&A, the returns on
09 Jul 2021
I have been trying to break into IB since I graduated last year with no luck. I realize though I really want to get into project finance (infrastructure loans) and am considering to focus on credit roles. From what I understand credit risk way to get into the industry. However, I met a Project Finance Director at a European Bank and he transition from IB. Can anyone who is in Project Finance give job strategy advice? Thanks.
27 Aug 2014
Hey everyone! I was wondering if there is an energy banker here who can explain to me the difference between a Project Finance valuation of a solar plant and a wind plant. I did not find a financial model on the topic so if somebody has some materials, I would love to see them. Thanks!
06 Feb 2021
Can't seem to find any recent threads about this. Anyone care to share what the salaries are for analysts and associates especially for the European, Japanese PF banks? I heard MUFG is at 120-130k base for Associate 1. Let me know if this is accurate or if this has changed.
15 Jul 2021
First time writing at WSO. I've been spectator for some time - finding this website has been the best thing ever happened to me. I'm saying this because now I have few decisions to make! FYI. I have always been interested in infrastructure and project finance. Option 1) Public Finance role at BB Option 2) Well respected Infra PE firm (~10bn AUM) Option 3) PE role at Pension Fund's in-house Infra Investment group (~20bn AUM) Option 2,3 are most compelling as these would entail direct investing in infra. Public fin role at BB isn't so attractive compared to 2 and 3 in my opinion. What do you
17 Oct 2017
Hi, I was curious if anyone had any insight on what it is like working in a project finance role for a government agency? The position would be working on 3P infrastructure transactions for the most part. How are the exit opps after a role like this? Are you branded as a government or project finance guy for life? Or can you play up the modelling component of the job and break into IBD/AM if you leave soon enough? Thanks!
07 Dec 2016
Hi all, I just finished interviewing for a project finance position and received an offer. I wanted some suggestions as to what I should consider before accepting the offer. The base salary is solid and more than I was expecting to get from a job right out of school (still finishing my last four classes over summer). I currently am planning to ask about parking, whether or not it is provided and if I can get compensated for the costs in some way. But other than that, what else should I consider negotiating into my offer before accepting? I want to make sure I can retain as much of the salary
01 Jul 2021
Can anyone tell me what kind of technical questions to expect for a Project Finance Interview? Is it exactly like a typical IBD interview or do they ask different questions? It is for a BB, any other tips would be greatly appreciated.
06 Oct 2014
I am supposed to be updating my firm's website and am having trouble wording one of our activities. Does anyone know what the technical term would be for the following transaction; Say you are a commodity trading firm. A mine operator wants to invest in a new mine. Rather than taking out a loan, they pledge to supply you with X amount of tonnes of product at a discount (say some CME coal contract minus 2 dollars) for the next three years, in exchange for the cash to carry out their investments now. Likewise, does anyone know what the technical term for the following, simpler, transaction would be? Commodity trading firm lends cash to mine operator, mine operator pledges to supply trader with X amount of tonnes for FREE for the following 3 years. Any ideas?
20 Sep 2010
Hi all, Below are attached the Global 2012 DCM rankings. If there is interest, I can post similar tables on: ECM, M&A, Loans, Trade Finance, Project Finance. Call your attention to the first chart, you'll see the deep cuts that Citi and UBS have made reflected in their dropoffs from 2011 levels. Notice also the extremely close numbers between Barclays and Deutshce. Look for a change in the #2 spot for 2013, as DB is certainly trying to make that a reality. Also notice the disappearance of BNP, as their balance sheet overhaul in 2012 placed them at a disadvantage for underwriting business. Credit Suisse is moving up the charts slowly.
17 Jan 2013
Hello, this is a noob question but one I could not find an answer for in my search of the various threads on the forum. When a developer/sponsor is seeking to raise additional equity, or raise debt financing, do they pay for the equity and credit investors legal fees? I seem to recall the convention in project finance is for the sponsor to pay for borrower legal fees - is that correct? And does coverage of legal differ for an equity investor? Thank you for the help.
10 May 2021
Got a call from a recruiter about this job. What do you guys think of doing this post 2 years in banking, in terms of opportunities to PE or top B-School afterwards? Is this a decent gig or doesn't compare to PE / HF / Corp Dev? Long-term goal is PE or HF but opportunities currently seem bleak for me so trying to be open minded here. http://www.solarcity.com/hr/377/26/Analyst--Struc…
22 Feb 2012
I'm a student at a top U.S. public university and I am interested in positions in project finance. Only issue is, all the big players in project finance seem to be European (SocGen, CA, BNPP, HSBC, RBS). I can't help but think that being in the U.S. will make it difficult to land interviews with these European banks (I don't think any of the banks mentioned above recruit at my school). So my question is -- how receptive are the European banks to off-campus applications from U.S.-based students? Does anyone have experience successfully making this kind of jump? My background is East Asian and I am more than willing to move to HK / Singapore, if that's relevant.
30 Mar 2011
I have years of engineering experience in handling industrial projects such as building chemical process plants, oil refineries, power plants and etc., and currently, I am thinking to have a career change to do project finance for those industrial projects in Asia area. To do that, I am planning to study a master degree to prepare me for the career change. The following are my questions Should I do MBA or MSc? Any suggestion for good master programs/Schools in Asia area are suitable for my situation? I know I-Banks such as Credit Suisse, Deutsche Bank, and etc. are some big players in the project finance industry, but is I-Banks the only way for jobs? What are some other options? How hard for an engineer to have a career change into the finance industry?
05 Nov 2010
Hi, I know that there are some BBs that have specific project financing groups but I was wondering, for those who don't, would project finance (by that I mean projecting cash flows for project/investment, designing capital structure, obtaining necessary financing, etc.) be more like capital markets or even corporate banking versus just traditional i-banking groups like M&A or restructuring?
11 Feb 2011
I'm looking into a position that is based off financial modeling for a project. I'm familiar with corporate financial modeling/valuation, however I'm wondering if someone here has experience in project financial modeling. How does project and corporate financial modeling differ? I've heard that project financial modeling can often be more challenging than corporate, does that hold true? Finally, can anyone suggest any good books/online courses for project financial modeling or related topics? Note: This project is under a large corporation and will likely not need external financing, if that makes a difference. Thanks
17 Sep 2012
Hi, Does anybody has any info on PwC infrastructure advisory department? How is it regarded by the industry? How difficult would be to move from there to a project finance tema in a bank or PE in the future? I want to end up in project finance and eventually PE or industry, but not sure how it differs from PwC to a bank and if it does much, if the experience would be valuable career wise. Thanks!
21 Nov 2014
So the title is a bit clickbait - I completely understand each career has its own merits and each individual enjoys different things. I've been in public finance for about 4 years now. Looking to potentially exit. The lowering spreads, lack of strong analytical work and pitching/RFPs amongst other things is driving me out. I'm looking for something with more deal focus (opposed to pitching) and analytical. DCM seems like it would be the easiest transition with the least hours. But less modeling and more pitching. Project finance on the sponsor side is my top interest at this point. It seems
07 Feb 2020
Monkeys... Need your advice on whether to go get top MPA (SIPA/HKS/Princeton) after my MBA So I'm on my last year at usc, and my passion is somewhere in infrastructure / project finance or even public finance, due to my background, but I haven't had any success breaking in... I didn't like my internship in corp banking, so I'm not going back. My modeling (project finance) skills is so-so and pretty basic because I pretty much taught myself. My problem is that I can't really come in as associate because of limited modeling/finance experience, and overqualified to come in as an analyst due to
28 Oct 2015
Hey guys, Now that I have my summer worked out I'm starting to explore what I want to pursue for FT in the fall. I'm definitely pretty firm on staying in the energy/infrastructure space but I've recently been looking into Project Finance groups. I'm not concerned with exit ops just something that really interests me. What are some of the best firms/groups for project finance (in terms of deal flow/prestige/size)? Thanks alot in advance,
10 Feb 2011
So I am finishing my two years at a major European bank on the Project Finance side. Think SocGec and the likes. Have a decent track record of transactions with mostly commodity background and some infrastructure acquisition deals. They offered me to stay on board as an associate. On the other side, I have an offer to join a successful midsize (EUR 2-3bn) Fund of Funds. Invested mostly in PE funds in W. Europe & USA. They are expanding their infrastructure funds investment business and need a new associate. Basically I would have a chance to participate in full life cycle of a fund from fundraising to investing,
25 Jul 2011
Hi Everyone, How is pay at top PF firms across the Street such as SMBC, SocGen, MUFG, etc? I assume base is consistent with BBs (85,90,95) but where does the bonus fall? I have an offer for one of these shops and I am very curious. Thanks in advance!
28 Oct 2020
Hey, I was wondering if anybody knows anything about the firm George K. Baum (it's a public finance ib)? Can you do anything coming out of here (i.e. exit opps)? Would it make you a competitive business school applicant assuming you meet other requirements (+700 GMAT, solid GPA, ECs, Recs)? I went to H/P/Y undergrad and just received an offer from these guys. Once in business school, could you leverage this into traditional ib or other roles? Thanks in advance for any input.
02 Feb 2011
I'm looking to get into project finance from public finance but I'm a little confused on the industry players. From the search function I'm of the understanding that Japanese/French/English banks dominate this space. If I'm wanting to look at those who structure and run the deal, should I be looking at bookrunner or mandated lead arranger on Bloomberg? For example, Rabobank shows up on lead arranger but not bookrunner. Are BBs worth applying to in this space or is it just better to wait for one of the former mentioned firms? If anyone had any insight or could PM me that would be great. Thanks!
14 Feb 2020
Hi monkeys, What are your best practices for quickly processing/pricing potential opportunities and determining whether or not they are profitable. I'm talking about a quick first pass that takes a few hours to put together and summarize for a director. I'm working at a family office that's building up its renewables portfolio. We have a specific leveraged investment trust structure that determines our cost of capital and of many of these new projects require tax equity as well. Usually I get a new opportunity and proceed to model out these things in detail, but I know there's a better way
26 Feb 2020
What's the outlook for project finance with COVID-19? It looks like issuance is down ~50% YTD. Are deals line up just waiting for the market to execute? I've heard of a couple that have gone through recently with significant yield premium. There were a good amount of job postings right before everything escalated with the virus and none so much since then. Does anyone have any insight on hiring needs with project finance right now?
04 Jun 2020
Hello monkeys, Quick question that may sound stupid but I'm kind of puzzled. I'm applying to a big bank in Project Finance in the US (New York) and they are asking me my base salary desired. As a european, I'm not used to be asked this question and I don't know the kind of compensation I can expect (given the bank, department and location) I tried to find some info online but I got anywhere from 45k to 100k so it doesn't help me much and the bank is not part of the compensation survey of WSO. So, what kind of salary can I expect and indicate in my application ? Thanks a buch
07 Apr 2015
Hi Monkeys, First I want to thank everyone on this forum, even the shitposters,for teaching me so much more about the financial world, an industry I knew virtually nothing about. If it weren't for WSO, I'd probably be a public sector employee living off the taxpayer's teat. I transferred to and graduated from a semi? target, non-Ivy League school in 2019. I had previously been studying political science and then economics at a mediocre private school, but decided half-way through I needed to work my way into a higher pedigree institution for greater job prospects. I transferred into the
30 Dec 2019