Why investment banking?
I’m drawn to investment banking because it offers a dynamic and intellectually stimulating environment where I can make a direct impact on companies and
markets.
The fast-paced nature of the work, combined with the opportunity to solve complex problems and work on high-stakes, transformative deals, excites me. I am obviously young and want to do as much learning in as short a time as possible and investment banking is the best place to do that.
I think that when and if to transact is one of the biggest decisions that companies make and I find the motivations behind these decisions to be inherently
interesting.
I have had a taste of what the experience would be like through my time at KPMG and have seen up close personal some of the work done for us at foresight and its definitely given me the inspiration to have this be my next role.
Why energy and infra?
I’m interested in infrastructure because it’s about building and maintaining the systems that society depends on every day — from water, energy, and transport to digital networks. It’s tangible, essential work that directly impacts people and communities.
I like that the sector combines long-term planning with complex operational challenges which keeps things interesting and varied and I think for me being able to work on deals in the energy / infra sector is the perfect blend of combining financial analysis (something I enjoy) with real-world impact which is all you can really ask for with a job in finance.
Why Stifel?
I’m attracted to Stifel because it combines the execution capability, reach and reputation of an established global investment bank but with a more collaborative and entrepreneurial team structure.
I like that operate relatively lean teams which means as analyst getting significant exposure to both clients and seniors and being trusted to take on more meaningful responsibility at an early stage than you otherwise would which is an ideal environment for learning and development. So I think it would be an ideal place for my next role.
Usual process in sell-side M&A deal?
Preparation / Pitch: Conduct market research, prepare pitchbooks, and present recommendations to win the mandate.
Preparation: Advisors prepare the teaser, NDA, Information Memorandum (IM), vendor due diligence reports and the data room, often including a project model and operational data.
Launch / first round: Interested bidders sign the NDA, receive the IM and initial data room access, review vendor due diligence and submit first-round non-binding offers (IOIs / NBIOs) based on high-level analysis.
Shortlisting: The seller selects a small group of bidders to progress to the next stage.
Second round due diligence: Shortlisted bidders gain full data room access, attend management presentations, submit Q&A, and typically appoint external advisors (legal, financial, tax, technical) to conduct detailed due diligence.
Binding offers: Bidders submit final binding bids including price, financing and key terms.
Exclusivity and signing: The preferred bidder is granted exclusivity, negotiates transaction documents such as the SPA, and the deal proceeds to signing and closing.
How might traditional process differ with an energy infra deal?
Technical & regulatory due diligence: Asset inspections, engineering reports, and compliance checks alongside financial analysis.
Specialized financing & modeling: Project finance structures with long-term cash flows and IRR models; coordination with lenders is critical.
Broader stakeholder engagement: Regulators, municipalities, and off-takers influence timing and approvals.
Longer, iterative process: Regulatory, technical, financial, and lender-related steps often run in parallel, extending timelines versus standard corporate M&A.
What are you looking for in a new role?
The main thing I’m looking for is a transaction focused role, I want enough variety so as not become bored but enough specificity so as to really nail down a skill set and area of expertise. I think this role certainly provides that as there is diversity across infrastructure spectrum and across the types of mandates that I can work on, but all have a key similiar set of skills that are required and developed in each, and within sector coverafe theres enough similarities across the spectrum to really devlop some sector expertise, so I think it ticks everything for me.
Questions for them?
How is the teams deals split across infrastructure sectors and type of mandates?
Usual deal team structure?
Most enjoyable / worst deal you’ve worked on?
What will a successful first 6 months look like?
Out of the types of clients you work with, like a PE fund or corporate, what’s your preference and what the differences you find between them?
How much of your work is pitched for?
How do you value a renewable energy or infrastructure asset?
Use DCF over the project life (typically 15–25 years).
Key inputs: capacity (MW), capacity factor, electricity prices, operating costs, taxes, maintenance capex.
Adjust cash flows for PPA contracts, subsidies, or tax incentives.
Discount with WACC or project-specific hurdle rate.
Optionally calculate levered IRR if using project debt.
Trading comps and transaction comps can also be used but less typical.
What is project finance and how does it differ from corporate debt?
Debt is non-recourse or limited recourse, tied to the asset/project cash flows.
Lenders evaluate the project itself, not the sponsor’s balance sheet.
Common for energy/infra deals where upfront capex is high.
Corporate debt is on the company’s balance sheet; project finance is isolated to the asset.
How do you calculate unlevered vs levered IRR for a project?
Unlevered IRR: Cash flows to all investors (equity + debt), ignores financing.
Levered IRR: Cash flows to equity only, accounting for debt service.
Usage: Levered IRR shows equity investor return, unlevered IRR shows total project profitability.
Walk through a DCF?
Forecast free cash flows for 5–10 years.
Calculate terminal value (perpetuity or exit multiple).
Discount cash flows using WACC.
Sum PV of cash flows + terminal value → Enterprise Value.
Subtract debt, add cash → Equity Value.
How does valuing an infrastructure or energy asset differ from a standard company?
nfrastructure/energy assets are typically asset-heavy with long-term, contractually backed cash flows (e.g., PPAs, concessions), whereas standard companies rely more on operational earnings.
Valuation relies heavily on DCF/IRR models over 10–30 years rather than multiples, since comparables can be scarce.
Risk is driven by regulatory, operational, and financing factors, not just market competition.
Financing often involves project finance with non-recourse debt, affecting levered returns.
Overall, valuations focus on stability and predictability of cash flows, rather than short-term growth or market multiples.
What are the primary risks you consider when valuing a renewable energy project, and how do you quantify them?
- Expected answer: Risks include regulatory risk, technology risk, market risk (energy price volatility), financing risk, operational risk, and weather/energy production risk. These risks can be quantified through sensitivity analysis or adjusting discount rates to reflect risk premiums.
Key govt support mechanisms?
Contracts for Difference (CfDs): Government guarantees a fixed electricity price for renewable generators → provides revenue certainty and lowers cost of capital.
Power Purchase Agreements (PPAs): Long-term contracts with utilities or corporates to buy electricity → ensures predictable cash flows and supports financing.
Regulated Asset Base (RAB) Model: Regulator allows operators to earn approved returns on invested capital → stable, inflation-linked returns for infrastructure projects.
Subsidies & Tax Incentives: Investment tax credits, production tax credits, capital grants, accelerated depreciation → reduce upfront costs and improve project economics.
Capacity Markets: Payments to generators for being available to supply power → supports grid reliability and provides additional revenue.
Carbon Pricing / Emissions Trading (ETS): Companies pay for carbon emissions via tradable permits → incentivizes low-carbon generation and affects asset valuation.
FITs: Direct, fixed payments per kWh generated (more common for small-scale projects)
ROCs: Tradable certificates that support compliance obligations (mainly larger-scale generation)
What is a PPA?
A PPA is a long-term contract to sell electricity from a renewable project to a buyer (utility or corporate).
Provides revenue certainty, reduces project risk, and enables debt financing.
Utility PPAs: grid-connected projects; Corporate PPAs: companies securing renewable energy.
What’s the difference between P50 and P90 in renewable projects and their uses?
P50: 50% probability actual output ≥ forecast → expected scenario.
P90: 90% probability output ≥ forecast → conservative scenario.
Use: Lenders often underwrite using P90 to ensure repayment even in low-generation years.
What is a capcity factor?
Measures actual energy output / maximum possible output over a period.
Key for renewable valuation because it determines cash flow predictability.
Example: a 100 MW wind farm at 35% capacity factor produces 35 MW on average.
Key trends in energy transition / infra?
Growth of wind and solar globally, with declining costs and improving efficiency.
Rise of corporate PPAs as companies seek renewable energy.
Shift from fossil fuels → energy transition investments.
Increased importance of energy storage and grid flexibility to manage intermittent generatio
How is debt usually sized in infra renewable projects?
Start with Cash Flow Forecasts
Use project-level free cash flows (after operating costs, taxes, and capex).
Often consider conservative scenarios, e.g., P90 generation for renewables.
Determine Debt Service Coverage Ratio (DSCR)
Lenders set a minimum DSCR, typically around 1.2–1.5x for project finance.
DSCR = Cash Flow Available for Debt Service / Debt Payments
Ensures project generates enough cash to cover interest + principal even in low-generation years.
Calculate Maximum Debt
Based on DSCR and the projected cash flows, calculate the maximum debt the project can sustain.
Debt is sized so that even under conservative scenarios, lenders are confident the project can repay.
Adjust for Tenor, Interest Rate, and Covenants
Longer-term loans or higher interest rates reduce the amount of debt.
Covenants, maintenance reserves, and working capital requirements may also reduce the usable debt.
Equity Completes the Financing
Once maximum debt is determined, the rest of the project cost is funded by equity, which earns the levered IRR.
Wightlink refi?
Custodian data centres
Wightlink Refinancing 2025: Wightlink connects the Isle of Wight with Portsmouth and Lymington across several routes. It is described as a “UK ferry operator” in the context of its refinancing, which involved its owners Basalt Infrastructure Partners and Fiera Infrastructure.
Rock Rail German Electric Multiple Unit Fleet Acquisition (2024)
In 2024, Rock Rail, together with abrdn Core Infrastructure, acquired a fleet of 31 Alstom Talent 3 Plus electric multiple unit trains in Germany to lease to Abellio Rail Mitteldeutschland for regional services. The purchase was financed with a combination of equity and debt — institutional lenders such as Aviva, MetLife, and Legal & General, alongside bank lenders like Barclays and SEB, provided the debt portion. Stifel acted as exclusive M&A and debt advisor to Rock Rail, helping structure the acquisition, arrange financing, and coordinate the transaction. This is a typical rolling stock infrastructure deal, where the investor owns the trains, leases them under long-term contracts, and generates stable cash flows for debt service and equity returns.
Why are you looking for a new role?
A few reasons, obviosuly doing quarterly valautions can be inherently reptitive and i’ve already startted to feel that, so a role that has more variety and is more bit mroe fast-paced, it can get a little quiet in between quarters. Then I think the other thing I want a role where I have more impact, valuations some time can feel a bit like a reporting obligation and can be quite influenced, so a role where my work feels like it has mroe consequence and is more impactful.
Compare the main three valuation methodologies and their pros and cons
Trading Multiples (Comparable Companies Analysis):
What it is: Valuation based on market multiples of similar publicly traded companies (e.g., EV/EBITDA, P/E).
Pros: Quick, market-based, and easy to apply.
Cons: May be influenced by market distortions, lacks company-specific insights.
Transaction Multiples (Precedent Transaction Analysis):
What it is: Valuation based on multiples from past M&A transactions of similar companies.
Pros: Reflects actual deal prices and strategic premiums.
Cons: Limited by historical data, may not reflect current market conditions.
Discounted Cash Flow (DCF):
What it is: Values a company based on its projected future cash flows, discounted to the present using a required rate of return.
Pros: Focuses on intrinsic value and long-term cash generation.
Cons: Sensitive to assumptions about future performance and difficult to estimate accurately
Describe the work on project jade and the valuation methods?
- Built financial for a self-storage company in the property sector
- Included 14 sites each of which had its own worksheet. Each site was modelled as a P&L down EBITDA and site-level fixed assets.
- Each site is then consolidated at the group level, with the cashflow being done at group level too.
- The model has development projects built in. Each project had a specific number of units and date at which it will come online. Functionality was built in to turn projects on/off, move the opening date and change the number of units.
- Valuation methods include DCF per site and a direct capitalisation method.
- DC method is based on assumption about stabilised occupancy and pricing and then an assumption on the cap rate. Any forecast capex is also PV’ed and subtracted. If not at stabilised occupancy rate at valuation date, then the difference between stabilised EBITDA and forecast EBITDA is PV’ed and subtracted until the date at which stabilised occupancy is reached.
- DCF is standard DCF, with working capital only done at the group level and only included in HDO.
