Public Sector & Infrastructure — Investment Banking Mock Interview
Navigate SPV structures, concession-based cash flow modeling, DSCR/LLCR debt sizing, and advanced topics like RAB premiums, debt sculpting, and greenfield J-Curve dynamics.
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Key Topics Covered
SPV Structure, Non-Recourse Debt & Cash Flow Waterfall
Explains how infrastructure assets are ring-fenced in Special Purpose Vehicles with non-recourse project finance debt, covers the cash flow waterfall priority from operating expenses through senior debt service, maintenance reserves, and cash sweep mechanisms down to equity distributions, and contrasts CFADS with corporate EBITDA.
Concession Agreements: Availability vs. Demand Risk
Distinguishes availability-based concessions where the government pays a fixed amount for maintaining service standards from demand-risk concessions where revenue depends on actual usage like toll roads, and explains why availability payments produce lower but more predictable equity returns attractive to pension funds.
DSCR, LLCR & Debt Sizing/Sculpting
Covers DSCR as the period-by-period coverage test ensuring CFADS exceeds debt service obligations, LLCR as the loan-life coverage ratio measuring total present value of CFADS against outstanding debt, and how debt sculpting shapes the repayment profile to match the project's uneven cash flow pattern rather than using flat amortization.
RAB Regulation, Inflation Linkage & Refinancing Gains
Details the Regulated Asset Base framework where returns are earned on an inflation-indexed capital base, explains RAB premiums earned through totex efficiency and financing outperformance, covers CPI linkage as a natural inflation hedge, and walks through refinancing gain-sharing between the SPV and the government concession authority.
Greenfield J-Curve, IDC & Terminal Value Considerations
Explains the J-Curve where greenfield equity returns are negative during construction due to Interest During Construction capitalization and no revenue, then accelerate as the asset reaches operations, covers run-off DCF modeling to concession end with no terminal value, and discusses negative-tail handback obligations.
How to Prepare for Public Sector & Infrastructure Interviews
Understand the fundamental mindset shift from corporate finance: infrastructure analysis focuses on cash flow predictability and downside protection rather than growth potential. The basic session frames this clearly, and interviewers test whether you can articulate why CFADS matters more than EBITDA and why Equity IRR is the gold standard metric.
Be ready to explain the DSCR versus LLCR distinction. The basic session introduces DSCR as the period-by-period test and the advanced session adds LLCR as the cumulative test, and interviewers expect you to know that a project can pass its minimum DSCR covenant in every period but still breach the LLCR if the overall coverage is tight.
Know how debt sculpting works: the advanced session explains that sculpting shapes repayment to follow the project's CFADS profile rather than imposing flat amortization, which maximizes leverage capacity by ensuring the DSCR stays constant across periods rather than being constrained by the weakest year.
Prepare to discuss the J-Curve in greenfield infrastructure equity returns. The advanced session explains that Interest During Construction is capitalized into the project cost, equity cash flows are deeply negative during construction, and returns only materialize years later when the asset reaches full operations, which is why infrastructure funds have long fund lives.
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About This Public Sector & Infrastructure Mock Interview
These sessions cover infrastructure finance from the fundamental mindset shift through advanced project finance mechanics. The basic session walks through the shift from growth-and-competition corporate analysis to stability-regulation-and-predictability infrastructure analysis, SPV non-recourse debt structures, 20-to-50-year modeling horizons, transportation, social, digital, and environmental infrastructure subsectors, availability payments versus demand risk, concession agreements, greenfield versus brownfield, CFADS versus EBITDA, DSCR mechanics, the cash flow waterfall from revenue through senior debt service to equity distributions, RAB-based regulation, infrastructure as an inflation hedge, PPAs in power, capacity factors, ramp-up risk, and the pension fund risk framework. The advanced session pushes into run-off DCF without terminal value and negative-tail handback scenarios, exit multiple compression due to remaining concession life, RAB premiums from totex and financing outperformance, regulatory reset risk, debt sizing and sculpting to match CFADS profiles, DSCR versus LLCR, the J-Curve in greenfield equity returns, Interest During Construction capitalization, circular reference resolution, CPI linkage and inflation beta, availability-based PPP versus demand-risk concessions, refinancing gain sharing, merchant versus contracted power risk, Equity IRR as the gold standard, and comparing greenfield data centers to brownfield water utilities.
This topic is part of the Industry Verticals section of our investment banking mock interview library. It includes 2 sessions covering both basic and advanced difficulty levels. Each session includes multi-speaker audio with realistic interviewer questions and candidate responses, plus a full interactive transcript you can follow along with or study independently.
Audio Recording
47 minutes of multi-speaker audio
Full Transcript
Interactive transcript with timestamps
1 Basic + 1 Advanced
Basic & Advanced
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I personally found that the 'IB Vine Select' collection had some of the exact questions I was asked in my Qatalyst interviews.
Analyst
Thanks for starting up IB Vine. Couldn't have landed my offer without your help!
User Story
I honestly think you're doing gods work since IB Vine democratizes the whole interview process and helps a lot of students ace their interviews.
Analyst
I found this website really helpful, which also helps me better prepare for the technical interview in IBD position and get an offer.
Seen on WallStreetOasis
Check out IB Vine, specifically the 'IB Vine Select' questions. Once you can get a handle of those, it seems like you are in a spot where you're applying the concepts rather than simply memorizing them
Analyst
I've used IB Vine for my recruitment, and I could not imagine the journey without it. Thank you for creating a phenomenal resource.
Seen on WallStreetOasis
Beyond the 400 questions guide, try to understand a deeper level and the underlying concepts of the questions being asked. Use ibvine, it really helps.
Seen on WallStreetOasis
IB Vine has excellent questions, especially multistep ones. In my experience I've gotten grilled on accretion/dilution, bond math, and merger model questions. IB Vine has great practice for all of those.
User Story
As a nontraditional transfer student who has been rendered unavailable to many resources at my university (Leadership positions at clubs, immediately behind the recruiting cycle, etc.) IB Vine has been an absolute game changer in my IB prep.
Seen on WallStreetOasis
From my experience interviewing FT for IB, it’s not enough to just know the 400 questions anymore (it’s a good starting point) but to look at even more advanced questions. Would recommend IB Vine.
Seen on Twitter
heard all the new kids use IB Vine now. the questions on IB Vine helped me get the concepts down when I had to recruit and make a lot of BB/MM interviews easier than I expected for techs
User Story
Just got off the phone with a kid who interned at a Dallas PE firm. He mentioned that IB Vine helped him secure that internship as well as his Summer Analyst offer, especially since he came from a non-target with no resources.
Analyst
The IB Vine technical prep is beyond helpful, it's so much more fun quizzing myself every now and then vs. reading through the guides again.
Analyst
I personally found that the 'IB Vine Select' collection had some of the exact questions I was asked in my Qatalyst interviews.
Analyst
Thanks for starting up IB Vine. Couldn't have landed my offer without your help!
User Story
I honestly think you're doing gods work since IB Vine democratizes the whole interview process and helps a lot of students ace their interviews.
Analyst
I found this website really helpful, which also helps me better prepare for the technical interview in IBD position and get an offer.
Seen on WallStreetOasis
Check out IB Vine, specifically the 'IB Vine Select' questions. Once you can get a handle of those, it seems like you are in a spot where you're applying the concepts rather than simply memorizing them
Analyst
I've used IB Vine for my recruitment, and I could not imagine the journey without it. Thank you for creating a phenomenal resource.
Seen on WallStreetOasis
Beyond the 400 questions guide, try to understand a deeper level and the underlying concepts of the questions being asked. Use ibvine, it really helps.
Seen on WallStreetOasis
IB Vine has excellent questions, especially multistep ones. In my experience I've gotten grilled on accretion/dilution, bond math, and merger model questions. IB Vine has great practice for all of those.
User Story
As a nontraditional transfer student who has been rendered unavailable to many resources at my university (Leadership positions at clubs, immediately behind the recruiting cycle, etc.) IB Vine has been an absolute game changer in my IB prep.
Seen on WallStreetOasis
From my experience interviewing FT for IB, it’s not enough to just know the 400 questions anymore (it’s a good starting point) but to look at even more advanced questions. Would recommend IB Vine.
Seen on Twitter
heard all the new kids use IB Vine now. the questions on IB Vine helped me get the concepts down when I had to recruit and make a lot of BB/MM interviews easier than I expected for techs
User Story
Just got off the phone with a kid who interned at a Dallas PE firm. He mentioned that IB Vine helped him secure that internship as well as his Summer Analyst offer, especially since he came from a non-target with no resources.
Analyst
The IB Vine technical prep is beyond helpful, it's so much more fun quizzing myself every now and then vs. reading through the guides again.
Analyst
I personally found that the 'IB Vine Select' collection had some of the exact questions I was asked in my Qatalyst interviews.
Analyst
Thanks for starting up IB Vine. Couldn't have landed my offer without your help!
User Story
I honestly think you're doing gods work since IB Vine democratizes the whole interview process and helps a lot of students ace their interviews.
Analyst
I found this website really helpful, which also helps me better prepare for the technical interview in IBD position and get an offer.
Seen on WallStreetOasis
Check out IB Vine, specifically the 'IB Vine Select' questions. Once you can get a handle of those, it seems like you are in a spot where you're applying the concepts rather than simply memorizing them
Analyst
I've used IB Vine for my recruitment, and I could not imagine the journey without it. Thank you for creating a phenomenal resource.
Seen on WallStreetOasis
Beyond the 400 questions guide, try to understand a deeper level and the underlying concepts of the questions being asked. Use ibvine, it really helps.
Seen on WallStreetOasis
IB Vine has excellent questions, especially multistep ones. In my experience I've gotten grilled on accretion/dilution, bond math, and merger model questions. IB Vine has great practice for all of those.
User Story
As a nontraditional transfer student who has been rendered unavailable to many resources at my university (Leadership positions at clubs, immediately behind the recruiting cycle, etc.) IB Vine has been an absolute game changer in my IB prep.
Seen on WallStreetOasis
From my experience interviewing FT for IB, it’s not enough to just know the 400 questions anymore (it’s a good starting point) but to look at even more advanced questions. Would recommend IB Vine.
Seen on Twitter
heard all the new kids use IB Vine now. the questions on IB Vine helped me get the concepts down when I had to recruit and make a lot of BB/MM interviews easier than I expected for techs
User Story
Just got off the phone with a kid who interned at a Dallas PE firm. He mentioned that IB Vine helped him secure that internship as well as his Summer Analyst offer, especially since he came from a non-target with no resources.
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