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...

Comments ( 4 )

1y
franco , what's your opinion? Comment below:

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
1y
ww9 , what's your opinion? Comment below:

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.

1m
DrewMakory , what's your opinion? Comment below:

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