Macquarie Infrastructure PE (Case Interview Prep)
Prepare by confirming the exact Macquarie entity and role, then practicing infrastructure investment cases rather than relying on assumed hiring rules. Build a clear view of cash flows, returns, risks, and valuation. Rehearse a two-minute recommendation, test downside scenarios, and check every claim against the current job description or recruiter guidance.
The hardest part of preparing for an infrastructure investing interview is often not the math. It is knowing which employer and role the interview is for, then deciding which risks matter most when the case gives limited information.
I use a simple rule: make your reasoning visible. A strong practice case does not need a perfect forecast. It needs a clear recommendation, sensible assumptions, and a direct explanation of what could change your view.
Interview scope and employer verification
This preparation is for an investment recruiting process, not an academic program. “Macquarie Infrastructure” can refer to different entities, so first confirm the employer, team, and role in the current posting. Do not treat practice goals as official Macquarie hiring standards unless current employer materials say so.
Macquarie Asset Management’s infrastructure investing activities are distinct from Macquarie Infrastructure Corporation, a separate publicly traded entity that ceased trading in 2023. Check the exact employer name before you study or discuss any company. Similar names do not mean the businesses, jobs, or interview processes are the same.
Confirm the format before you practice
The job posting and recruiter are your best sources for role-specific details. Ask whether the case is live, take-home, or technical, and whether you should expect a model, a presentation, or a discussion. Do not assume every team uses the same process.
There is no verified, universal case score, GPA cutoff, or hiring threshold to rely on here. Unless a current posting or recruiter explicitly states a requirement, avoid presenting one as Macquarie policy. Your preparation should focus on skills that help you analyze an investment and communicate your view.
Before your first practice case, write down:
- The exact legal employer and team name
- The role’s stated responsibilities and required skills
- The interview format and any time limits you can confirm
- Whether the work is focused on a particular region or asset type
- Any instructions or materials supplied by the recruiter
If you cannot confirm an interview detail, label it unknown. This is better than building your preparation around a guess.
Case knowledge: infrastructure investing and returns
Infrastructure investing means assessing assets that provide essential services or support economic activity, such as transport, utilities, and communications networks. A case may ask you to judge an asset, estimate its financial returns, or explain what you would investigate before investing. Your task is to connect operating facts to cash flow and risk.
Start with the asset’s revenue model. Contracted revenue comes from an agreement, regulated revenue is shaped by a regulatory framework, and merchant revenue depends more directly on market prices or demand. These labels are not a full risk assessment: contracts can have weak terms, regulation can change, and demand can fall.
A practical case sequence
Use the same order each time. It keeps your answer focused and helps you avoid jumping straight into calculations.
- Clarify the objective. Are you assessing strategic fit, price, returns, or a proposed investment? Confirm the investment period and any limits on debt or capital spending.
- Map the business. Identify what the asset does, who pays, how revenue is set, and what drives demand or volume.
- Find the value drivers. Check revenue growth, operating costs, maintenance spending, major expansion needs, and the ability to pass through inflation.
- Build the return view. Estimate cash flows, debt, and exit value over a five-to-ten-year practice period. Make clear which figures are supplied and which are your assumptions.
- Test the downside. Change the assumptions most likely to affect the result, such as entry price, demand, cost growth, leverage, or exit value.
- Recommend and name the gaps. State your view, the main reason for it, the key risk, and what evidence you still need.
Core terms and calculations
IRR, or internal rate of return, is the annualized rate implied by the timing and size of investment cash flows. MOIC, or multiple on invested capital, compares total money received with money invested. They answer different questions: IRR reflects timing, while MOIC shows the total multiple.
For example, if a hypothetical investment of 100 produces one exit payment of 150 after five years, with no interim distributions, its MOIC is 1.5x and its annualized return is about 8.4%. This is a simplified illustration, not a forecast or a Macquarie case. Real investments may include interim cash flows, fees, debt, and other details.
| Case factor | What to examine | Useful practice question |
|---|---|---|
| Revenue | Contract, regulation, or market exposure | What sets the price, and can it change? |
| Demand | Volume, customer needs, and alternatives | What happens if use falls? |
| Inflation | Cost increases and pass-through terms | Which costs rise faster than revenue? |
| Capital spending | Maintenance and growth projects | What spending is required to keep service reliable? |
| Debt | Amount, interest cost, and maturity | Can the asset meet payments and refinance? |
| Exit | Buyer demand and valuation assumptions | How much of the return depends on the sale price? |
Leverage is debt used alongside investor capital. It can increase equity returns when an investment performs well, but it also raises payment and refinancing risk. Do not describe debt capacity using a single ratio without context. Explain what cash flow must cover and what could weaken that cash flow.
A useful model should show operating cash flow, capital spending, debt service, and cash available to investors. Keep units consistent, state whether figures are annual or cumulative, and avoid false precision when the case data are incomplete.
Preparation and case execution
A good preparation plan builds from sector knowledge to timed practice. It does not depend on guessing the firm’s private interview questions. Use the current job description to choose relevant asset types, then practice a range of cases and review where your reasoning or calculations break down.
A four-stage practice plan
Stage 1: Verify the role. Read the current posting and note the team, responsibilities, and required skills. Confirm the interview format with the recruiter if possible. Separate confirmed details from assumptions.
Stage 2: Build the toolkit. Review basic accounting, valuation, project cash flows, debt capacity, IRR, MOIC, and scenario analysis. For each asset type you study, learn how revenue is earned and what can disrupt it. Match your study to the role instead of trying to cover every infrastructure sector equally.
Stage 3: Run at least three timed cases. Use different asset types, such as a regulated utility, a transport concession, or a contracted energy asset. Treat these as practice settings, not claims about the employer’s actual interview questions. For every case, include a recommendation, a base and downside view, key diligence questions, and at least one quantified sensitivity.
Stage 4: Review and close gaps. Check your arithmetic, units, assumptions, and conclusion. Practice a two-minute opening recommendation and a five-minute investment committee summary. These are practice targets, not stated Macquarie requirements.
A worked practice scenario
Suppose a case describes a transport concession with steady recent traffic, a fixed end date, planned maintenance, and a proposed purchase price. This is a hypothetical example. It is not an actual employer case or a claim about a specific asset.
I would first ask how long remains on the concession and what happens when it ends. Then I would examine traffic drivers, pricing rights, inflation terms, required maintenance, and any limits on service. A steady past volume does not prove future growth, and a concession’s remaining term can affect both cash flow and exit value.
Next, I would compare three views:
| View | Illustrative assumption change | What it tests |
|---|---|---|
| Base | Traffic and costs follow the case assumptions | Whether the proposed price can meet the return goal |
| Downside | Traffic falls and maintenance costs rise | Whether cash flow can withstand weaker operations |
| Upside | Traffic grows and price terms allow some cost recovery | How much value depends on favorable conditions |
Do not invent a target return if the case does not provide one. Instead, show how returns change with the purchase price and explain what information you need to judge whether the result is attractive. For example, quantify the effect of a lower exit value or higher maintenance spending if enough data are available.
Infrastructure diligence checklist
Use this checklist to organize questions, not to recite every item in every case:
- Regulation or concession: Who sets prices? When can terms change? When does the right to operate end?
- Demand and volume: What drives use? Are there customer, route, or technology alternatives?
- Inflation pass-through: Can revenue adjust when costs rise, and when?
- Capex and maintenance: What must be spent to maintain safety, service, and asset life?
- Leverage and refinancing: When does debt mature? Could rates or weaker cash flow limit refinancing?
- Counterparties: Who pays or performs under key contracts, and how exposed is the asset if they fail?
- Environmental and transition risks: What rules, physical risks, or changes in technology could affect cost or demand?
To close a case, give your recommendation, the two or three facts that support it, the main downside, and the diligence that could change your view. A concise answer is stronger than a long list of risks with no ranking.
Career relevance and interview communication
The case tests transferable investing skills: financial analysis, commercial judgment, risk assessment, and clear communication. You can prepare for those skills without claiming knowledge of private hiring criteria or making assumptions about placement rates and career outcomes. Use the role’s current description to decide which skills deserve the most attention.
A useful recommendation links the asset to its cash flows, price, and risks. For example: “I would proceed to diligence at this price because the stated revenue terms support the base case, but I would not finalize a decision until we test maintenance costs and refinancing.” The wording is only a practice example. In a real case, your answer must follow the facts provided.
I also recommend keeping a short case log. After each practice session, record the asset type, your initial view, the biggest return driver, the assumption that changed your conclusion, and one calculation to redo. This makes progress visible and helps you focus later practice on real gaps, not just on completing more cases.
The central preparation goal is sound judgment under limited information. Verify the role, build a transparent cash-flow view, test the downside, and communicate what you know and what you still need to learn.
FAQ: infrastructure investing case preparation
What should I study for an infrastructure investing case?
Study revenue models, valuation, project cash flows, debt, IRR, MOIC, and scenario analysis. Focus on the sectors and skills named in the current job posting.
Is there a published Macquarie case pass score?
Do not assume there is a universal score. Rely on current employer or recruiter materials for any stated assessment criteria.
Does “Macquarie Infrastructure” always mean Macquarie Asset Management?
No. Confirm the exact entity and team. Macquarie Asset Management’s investing activities are distinct from Macquarie Infrastructure Corporation.
What is a useful practice period for a cash-flow model?
A five-to-ten-year view is a practical preparation target. It is not a verified employer requirement.
How many timed cases should I complete?
Complete at least three practice cases across different asset types, then review your assumptions, calculations, and communication.
What is the difference between IRR and MOIC?
IRR estimates an annualized return using cash-flow timing. MOIC compares total money received with money invested.
How should I handle missing data?
State what is missing, make a clear assumption only when needed, and show how a reasonable change affects your conclusion.
What risks should I test first?
Prioritize risks tied to the case: regulation or concession terms, demand, inflation, maintenance, debt, counterparties, and environmental or transition issues.
What should a two-minute recommendation include?
State your decision, the main reasons, the principal risk, and the next diligence step. Use only facts and assumptions you can explain.
(This article was written by one of our staff writers, James Holloway. Visit our Meet the Team page.)
