barings

Question 2

How many tennis balls are in a plane

Answer 2

Brain Teaser: “How many tennis balls can you fit in a plane?”

Step 1: Estimate the size of a tennis ball

Let’s guess that a tennis ball is about the size of an orange. Say, it’s around 7 cm in diameter.

We don’t need the exact volume calculation; instead, we’ll just ballpark that one tennis ball takes up about 300 cm³ (or 0.0003 cubic meters) of space. This is an educated guess based on visualizing the ball.

Step 2: Estimate the size of the plane

Imagine we’re dealing with a large plane, like a Boeing 747 or a typical commercial airliner.

If you think about the passenger cabin, let’s guess the cabin is roughly 50 meters long, 6 meters wide, and 4 meters tall (a rectangular shape, though it’s curved in reality).

So, to estimate the volume of the cabin:
50m×6m×4m=1,200cubicmeters.

Step 3: Adjust for space usage

Of course, the plane isn’t completely empty; there are seats, aisles, and other equipment. Let’s assume that only about 60% of the cabin’s volume is usable for filling with tennis balls.

So the usable volume is:
1,200cubicmeters×60%=720cubicmeters.

Step 4: Estimate how many tennis balls fit

Now, let’s divide the usable volume by the approximate volume of one tennis ball:

0.0003cubicmeterspertennisball/
720cubicmeters​
=2.4milliontennisballs

Answer: With these rough estimates, about 2.4 million tennis balls could fit inside the plane’s usable space.

Question 3

A car drives 60 miles at an average speed of 30 miles per hour. How fast should the driver drive to travel the same 60 miles in the same time period, but at an average of 60 miles per hour?

Answer 3

Impossible

The most common mistake is to respond with 90 miles per hour or 120 miles per hour – if you get a question like this in an interview, be sure to ask clarifying questions that could point you in the right direction.

In this case, for example, we might have reframed the question and asked if it was really,

“How do you travel 60 miles in 2 hours at an average speed of 60 miles per hour?”

If he said yes, we’d instantly know it was not possible.

Question 4

What is the angle formed by the hands of the clock when it is 1:45?

Answer 4

142.5 degrees. If we just think of the clock hour hand at 1 and the minute hand at the 45 position (near 9 o’clock), that is 120 degrees since they are 4 “numbers” apart, and each
number on the clock represents 30 degrees (360/12).

However, recall that the hour hand has already moved by the time the minute hand has reached the 45 position – it is now closer to 2 o’clock. 45 represent ¾ of an hour, so the hour hand will have moved ¾ of 30 degrees, or 22.5 degrees. If we add them together,
we see that 120 + 22.5 = 142.5

Question 5

You have stacks of quarters, dimes, nickels and pennies
(these represent $0.25, $0.10,
$0.05 and $0.01, respectively, in the US monetary system for anyone international).

There are an unlimited number of coins in each stack.

You can take coins from a stack in any amount and in any order and place them in your hand. What is the greatest dollar value in coins you can have in your hands without being able to make change for a dollar?

Answer 5

Question 6

You have a hose along with a 3 liter bucket and a 5 liter bucket. How do you get exactly 4 liters of water?

Answer 6

Question 7

Introduce yourself/walk me through your cv

Answer 7

• I’m Abbas and I’m a second year at LSE Studying Economics and Economic History
• Heavily involved and led charitable groups for years in the UK and even in Africa through loans to hospitals and microfinance to the community.
• Seeing the impact of fundraising I took an interest in the healthcare industry working at the HQ of MACC Care a popular care home provider, Healthcare department of Downing an investment firm in London. Provided me with business specific knowledge and interpersonal skills but for me it lacked the technical skills of a longer finance internship.
• At LSE I’ve carried on this interest in investments through multiple stock pitch competition such as achieving 2nd in the LSE Investment Competition, capitalising on my public speaking certifications, and being chosen as 1 of 4 to the LSE Student Investment Fund from the entire cohort after a very competitive process.
• Confirmed this through my internship this summer at Avington, a boutique that specialises in luxury hotels, where I worked on multiple different deal mandates from such as securing a mandate for an advisory role on an $8 billion sale. Enjoyed the steep learning curve but most enjoyable experience was actually asset management and family office side. Enjoyed the higher responsibility and intimacy with each asset or investment.
  In my spare time, as mentioned before, I work a lot in the charitable space as I serve in an advisory role to previous organisations I led and I now run an organisation called Sherpa Mentors, a west-midlands-based mentoring group that has mentored over 120 mentees from low socioeconomic and underrepresented backgrounds. Enjoy football too but even more so from the important financial perspective, following deals such as Chelsea as well as upcoming sagas like Friedkin and Everton.

Question 8

Why Barings?

Answer 8

2 main reasons; huge scale and approach!

Barings has a huge global mandate (over 400 billion AUM+) the benefits for that for the real assets team are immense, for example having the research capacities and insights of all of the firms various sectors. For example I enjoyed the Barings streaming income podcast and Paul Stewart’s research which gave a huge variety of perspectives and clips.

DEAL w LEVERAGING NETWORK: financing the mixed-use Smoky Hollow development in Raleigh, North Carolina. Barings used its strong relationships through its Portfolio Finance team to secure the financing aspect of this project, which then opened the door for Barings’ real estate equity team to gain exclusive investment access to a high-quality, strategically located mixed-use property. This dual approach enabled Barings to not only provide financing but also participate directly in the real estate development, aligning its credit and real estate investment functions to create a unique investment opportunity within a competitive urban market.

Additionally, during my internship at Avington this summer, a global investment bank for ultra-luxury hotels, part of my role was formulating a weekly deals and hospitality industry newsletter. I saw how insight and utilising multiple branches of a business leads to huge value creation within real estate e.g. M’As D’en Bruno in Barcelona, capitalising on knowledge of winery resorts –> break into the top 100 list of hotels, getting 6th best hotel in the world

Question 9

build to core

Answer 9

• Build-to-Core Example:
  
  • Project: Eight Floors at 10 New Burlington Street, London
  • Location: London, UK
    Description: Barings completed the development of a premium, high-specification office building at 10 New Burlington Street in London’s West End. This project, which involved developing a state-of-the-art office building from scratch, aligns with their “build-to-core” strategy as it was designed to be held as a long-term core asset. The building incorporates sustainable construction practices, energy-efficient systems, and received BREEAM Excellent certification. This allows Barings to benefit from stable, long-term tenant demand in a prime location while meeting high sustainability standards and positioning itself for long-term growth in asset value.

Question 10

Why RE?

Answer 10

RE investing is about having the biggest impact through investing and improving assets to be the best possible —> Kibaha —> hospitals curing thousands, markets making communities thrive —> made me interested in the scale of capital –> the scale of firms like barings is exactly where I want to be, but at the same time employing similar expertise to find value in their skillsets e.g. Barings Build to Core Strategy (capitalising on the ESG Trends in the PWC Emerging Trends in RE) and partnership with locals in EM (capitalising on Experiential RE)—> same I experienced at Avington, family office investment became 7th in the world.

Question 11

Why Buyside?

Answer 11

Always had a native interest and passion for investing. (Simpsons) —> managed a small portfolio through YouTube, books and learning from huge value investors —> took that into lse, second stock pitch in lse investment competition, one of only 4 investors to be chosen from the first year —> thought investment banking might be for me but most interesting part was evaluating family office investments and optimising current e.g optimising every small detail from procurement to the material on roofs, everything made a big impact.

Question 12

What are some trends you have been following in the RE sector?

Answer 12

Internship at Avington monitored Blackstone expansion into the UK domestic staycation market from Bourne Leisure acquisition in 2021 for $3 billion –> following bolt on acquisitions such as of Village Hotels or smaller country assets such as Ardent Hotel show long-term confidence –> seems a bit confusing w macro picture –> wage stagnating? Why holiday –> acc perfect opportunity for negative income elastaticity, people focus on domesitc tourism as intl become less appealing –> BX long term strat of repositioning these assets to be more appealing long-term e.g. Wetherspoons partnership into Haven Parks and £170 million refurbishments

Question 13

Why Investment Management Rather than IB

Answer 13

Always had a native interest and passion for investing. (Simpsons) —> managed a small portfolio through YouTube, books and learning from huge value investors —> took that into lse, second stock pitch in lse investment competition, one of only 4 investors to be chosen from the first year —> thought investment banking might be for me but most interesting part was evaluating family office investments and optimising current e.g optimising every small detail from procurement to the material on roofs, everything made a big impact.

Question 14

How many iPhone were sold in the US Last Year

Question 15

Walk me through the business structure of a pizza company. Think about the main costs. Think about how current events could affect the pizza company?

Question 16

Why RE Equity?

Answer 16

Real Estate Equity –> links to Kibaha but about having the power to make an impact through change on a tangible basis –> Seen it at Avingstone —> M’As D’en Bruno in Barcelona, capitalising on knowledge of winery resorts –> break into the top 100 list of hotels, getting 6th best hotel in the world –> Same with barings take advntahe of strong trends

Question 17

Why Barings RE Equity?

Answer 17

Barings RE Equity looks for strong pockets of opportunities capital –> TIDE and Logitics Deal in Doncaster one of the 3 biggest warehouses in the UK

Question 18

How does the RE Equity Team work?

Answer 18

Raising Capital through a specific fund
Research and Strategy
Investment Strategy and Execution: Performing Long-Term Investments
Asset Management of the Asset
Client Relationships and Portfolio Management
Development and Value Creation
Performance Monitoring and Reporting
Exit Strategy

Question 19

How does an RE Equity Transaction work?

Answer 19

Market Research –> Sourcing and Due Diligence –> Investment Committee Approval –> Transaction Structuring and Execution –> Active Asset Management –> Performance Mentoring and Reporting –> Exit Strategy

Question 20

How does the Fund Structure work within RE Equity

Answer 20

1. Barings Innovation and Growth Real Estate Fund (BIG): Life Sciences and STEM Office
2. Barings RE EU Value Add: Value add across property sectors
3. Barings Real Estate Australia: Following acquisition of Altis Property Partners. Structure includes commingled funds and tailored mandates

Commingled Funds: Pooled Investment Vehicles aggregate capital from multiple investors to invest in a diversified portfolio of real estate assets
Separate Accounts: Tailored Investment Solutions for indv. Insts. For customised strategies
JV and Co-Investments: Barings partner with others

Question 21

TIDE deals in RE Equity?

Answer 21

The TIDE Bankside project at 135 Park Street in London’s Bankside area is a high-profile real estate equity investment by Barings, in partnership with LBS Properties. The development is a 12-storey, 145,000 sq ft building featuring Grade A office space, affordable workspaces, and retail units, uniquely positioned to meet the rising demand for sustainable and well-designed urban office environments.

Unique Aspects:
* Sustainability Focus: TIDE Bankside is designed to achieve net-zero carbon status and meet rigorous sustainability certifications, including a BREEAM Outstanding and NABERS 5 Star rating. It also targets a significant reduction in embodied carbon, surpassing LETI best practice standards by over 10%.
* Innovative Design: Created by Squire & Partners, the design emphasizes a modern, environmentally conscious workspace appealing to tenants committed to sustainable operations.

Investment Approach:
Barings’ investment in this project is driven by its strategic focus on high-quality, sustainable developments in prime locations. The project has already attracted tenants seeking long-term leases in green-certified spaces, underscoring the demand for environmentally responsible office spaces.
Core Deal Details:
* Location: 135 Park Street, Bankside, London
* Size: 145,000 sq ft across 12 storeys
* First Tenant: Costello Medical, leasing approximately 13,907 sq ft on a 15-year term
* Completion Timeline: Scheduled for Autumn 2024
* Key Milestone: Topping-out ceremony in October 2023 marked the completion of the main structure
Barings’ investment in TIDE Bankside represents a forward-looking approach to real estate, aligning with the demand for sustainable urban developments while delivering long-term value for tenants and investors.

Question 22

Logistics Doncaster RE Equity

Answer 22

In July 2024, Barings, in partnership with Panattoni, acquired a 65-acre fully consented logistics development site near Doncaster from Mulberry Developments. The site is strategically located less than a mile from Junction 34 of the A1(M), providing excellent connectivity to major motorways and ports, including Hull, Immingham, and Grimsby.

Key Details of the Deal:
* Development Plans: The initial phase involves constructing a 770,000 sq ft cross-docked logistics facility, with an option to acquire the remaining portion of the site for an additional 500,000 sq ft unit.
* Sustainability Focus: The development aims for high sustainability standards, targeting a BREEAM Outstanding certification and EPC ratings of ‘A’ for the warehouse and ‘A+’ for the office spaces.
* Construction Timeline: Speculative construction is set to commence in autumn 2024, with practical completion expected by September 2025.
Unique Aspects:
* Scale and Speculative Nature: This project represents one of the largest speculative logistics developments in the North of England, addressing the significant demand for large-scale logistics facilities in the region.
* Strategic Location: The site’s proximity to major transportation networks enhances its appeal for logistics operations, facilitating efficient distribution across the UK.

Question 23

focus sectors for barings

Answer 23

Logistics
Data Centres
ESG Premium offices

Question 24

What Questions do you have for me? (Jacopo Catto RE Equity)

Answer 24

I was looking at student accommodation in Rome from the streaming income podcast. 45 men for a bed and 15 men a bed. Was wondering your thoughts and how the space has developed as a space for Barings.

What is your thoughts on data centres, from talking to interns, I see most of your workflow has been on logistics?

What type of logistics and companies would be most interesting?

Thoughts on office?

How localised or asset specialised do you become?

Question 25

Why RE Debt?

Answer 25

RE investing is about having the biggest impact through investing and improving assets to be the best possible —> Kibaha —> hospitals curing thousands, markets making communities thrive —> made me interested in the scale of capital

Part of internships was helping raise capital through debt. Underwrote refinancing of $220 million valued luxury european hotel. Saw how rates were very preferable around 6% + SONIA. Also saw how debt (VICI) allows capital preservation, a strong capital position in a huge variety of assets in a prime time. Being exposed to a variety of different internships with a huge deal flow and great places to learn.

Question 26

Why Barings RE Debt?

Answer 26

Barings has a huge debt mandate and has taken advantage of it. Coordinating along with equity into premium investments.

Similar to other parts, being a central part of a huge firm with the consequent mandates. Project finance smooky woods development. Same as equity looks for unique pockets of opportunity while maintng a flat and lean team structure.

Looking to expand – launching a european residential debt fund

Question 27

How does an RE Debt Transaction work?

Answer 27

Step 1: Origination
* Interviewee: First, we source the deal. This could be from brokers, existing relationships, or directly from property owners seeking financing.
Step 2: Initial Screening
* Interviewee: We assess the borrower’s profile, the asset’s location, type, and preliminary financials. This step helps us decide if the deal aligns with our investment strategy.
Step 3: Due Diligence
* Interviewee: This is an in-depth analysis. We examine the property’s value, income potential, market conditions, and legal standing. Due diligence also involves environmental assessments, tenant quality reviews, and the property’s operational history.
Step 4: Credit and Risk Analysis
* Interviewee: Here, our credit team evaluates risk levels. They review the borrower’s creditworthiness, loan-to-value (LTV) ratios, and debt-service coverage ratios (DSCR), among other factors.
Step 5: Investment Committee Approval
* Interviewee: We prepare a detailed proposal for the Investment Committee, which scrutinizes the deal’s structure, risks, and expected returns before giving the green light.
Step 6: Deal Structuring and Documentation
* Interviewee: Once approved, we finalize the loan terms, including interest rates, amortization, covenants, and any collateral. Legal teams then draft the necessary documentation.
Step 7: Closing and Funding
Interviewee: After everything is signed, we fund the loan. The property owner uses these funds as outlined, and we begin tracking loan performance with regular updates and compliance checks.

Question 28

How does the RE Debt Team work?

Answer 28

Origination and Sourcing
* Interviewee: We have dedicated professionals across North America, EMEA, and Australia who leverage extensive networks to source potential lending opportunities. Our presence in local markets allows us to maintain real-time feedback and monitor trends effectively.
Barings
Underwriting and Credit Analysis
* Interviewee: Our underwriting team conducts thorough due diligence on potential investments, assessing property values, borrower creditworthiness, and market conditions. This process ensures that each loan meets our stringent credit criteria.
Barings
Portfolio Management
* Interviewee: Post-investment, our portfolio managers oversee the performance of each loan, ensuring compliance with terms and proactively managing any emerging risks. This includes regular reviews and adjustments to align with market dynamics.
Barings
Research and Strategy
* Interviewee: We have a dedicated research team that provides data-driven insights into market trends, property sectors, and economic indicators. This information guides our investment strategies and helps identify relative value opportunities globally.
Barings
Client Relations and Reporting
Interviewee: Our client relations team maintains transparent communication with investors, providing regular updates and detailed reports on portfolio performance. We prioritize strong governance and alignment with our clients’ long-term objectives.

Question 29

How does the Fund Structure work within RE Equity?

Answer 29

Barings Real Estate Debt Income Fund: Originating and managing real estate debt through investments in senior mortgage loans

Barings European Real Estate Debt Fund: European opportunities in senior and subordinated debt. Structured to accommodate commingled and separate mandates.

Barings RE Debt Strategies: tailored RE debt incl separate and JV

Question 30

How do current market trends impact the RE Debt market?

Answer 30

Interest Rate decline –> open up opportunities for more LBO financing, less liquidity gap planning

Office structural shift –> distressed assets may require transition financing for redevleopment or pluuging in liquidity gaps

Debt Funding Gap of EUR176 billion, commercial property borrowers may struggle to refinance loans maturing between 2024-7

Question 31

London Student Accomodation Venture RE Debt

Answer 31

In 2021, Barings provided a £140 million (€164 million) eight-year fixed-rate senior loan to the London Student Accommodation Venture, a joint venture between Unite Group and GIC. The loan was secured against two student accommodation properties in London. The Wembley asset, Arch View House, was completed ahead of the 2020/21 academic year, while the Whitechapel property is less than ten years old and has an excellent trading history, with 98-100% occupancy achieved over the last four academic years, prior to the pandemic. Unite Students will continue to manage and operate the two London properties under its management agreement with LSAV. Both assets are of high quality with excellent amenities, communal areas, and accessibility provision. They are well located in London and benefit from strong transport links. This loan follows a £124 million facility provided by Barings to Unite Students in 2014 and was repaid in July 2020.

Question 32

Madrid Logistics Portfolio Financing RE Debt Deal

Answer 32

Madrid Logistics Portfolio Financing: Barings increased a €85.6 million first mortgage loan secured against four Grade A logistics assets totaling 116,600 square meters within the Los Gavilanes industrial park in Getafe, Madrid. The Los Gavilanes industrial park is a prime logistics location, providing excellent connectivity to major transportation networks. The assets are modern facilities designed to meet the demands of contemporary logistics operations.

Question 33

Irish Industrial Portfolio Financing

Answer 33

Barings extended a new €225 million senior secured, floating-rate loan secured against income-producing industrial portfolios in Ireland for KKR and Palm Capital. The loan supports the acquisition and management of a portfolio comprising 73 properties, primarily located in Greater Dublin and Naas Enterprise Business Park. This transaction marks Barings’ debut as a lender in Ireland’s logistics market, reflecting its strategic expansion into new geographies.

Question 34

Do you have any questions for me? Katie Morett

Answer 34

How is it time between deal closing and physically lending the sponsors money?

Where do you see most of the unique opportunities to generate alpha as IR falling means less space for the liquidity gaps and attractive rates we saw prior in this debt golden age?

Question 35

Why Global Infrastructure debt?

Answer 35

RE investing is about having the biggest impact through investing and improving assets to be the best possible —> Kibaha —> hospitals curing thousands, markets making communities thrive —> made me interested in the scale of capital

Part of internships was helping raise capital through debt. Underwrote refinancing of $220 million valued luxury european hotel. Saw how rates were very preferable around 6% + SONIA. Also saw how debt (VICI) allows capital preservation, a strong capital position in a huge variety of assets in a prime time. Being exposed to a variety of different internships with a huge deal flow and great places to learn.

Question 36

Walk me through an Airpost revenues and costs

Answer 36

1. Revenue Streams
   Airports earn revenue primarily through two broad categories:

Aeronautical Revenue
Aeronautical revenue is directly tied to airline operations and includes charges to airlines and passengers for using airport facilities. This is a highly regulated source of income and includes:

Landing Fees: Charged to airlines based on the weight of aircraft and the frequency of landings. Larger, heavier aircraft generate more revenue but also incur higher operational costs for the airport.
Terminal Fees: Airlines are charged for the use of gates, check-in counters, baggage handling facilities, and other terminal services.
Passenger Facility Charges (PFCs): Fees added to ticket prices, often regulated and used specifically for capital improvements. These are common in U.S. airports but vary by jurisdiction.
Security Fees: Some airports impose security fees on airlines to cover the cost of security screening and infrastructure.
Parking and Hangar Rentals: Airports charge airlines for the storage and parking of aircraft between flights, an especially important revenue stream for hubs with high traffic.
Non-Aeronautical Revenue
Non-aeronautical revenue sources have become increasingly crucial for airports, especially as regulatory pressures limit aeronautical revenue growth. These sources are less regulated and include:

Retail and Concessions: Revenue from stores, restaurants, and duty-free shops within terminals. Airports often charge rent and may also receive a percentage of sales.
Car Parking and Ground Transportation: Parking fees from passengers and rental car companies can be highly profitable. Airports may also earn from rideshare companies through pick-up/drop-off fees.
Advertising: Many airports lease space for advertising within terminals, offering exposure to a large volume of travelers.
Real Estate Development: Some airports develop or lease real estate, often targeting hotels, logistics, and office space.
Premium Services: Revenue from services like lounges, VIP meet-and-greet services, and fast-track security.
2. Cost Structure
Airports incur both fixed and variable costs across operational, regulatory, and capital expenditure categories.

Operational Costs
These costs cover the day-to-day functioning of the airport and include:

Staffing and Labor: Costs associated with security personnel, customer service, maintenance, and administrative staff.
Utilities: Electricity, heating, cooling, and water are major expenses, especially for larger airports with multiple terminals.
Maintenance and Repair: Regular upkeep for runways, taxiways, terminal facilities, and baggage handling systems.
IT and Communications: Airports require complex IT infrastructure for operations management, flight information systems, and passenger services.
Regulatory and Compliance Costs
Airports must comply with stringent regulatory requirements, which adds to their costs:

Security: Security screening and infrastructure, often involving partnerships with government agencies like TSA in the U.S. or BAA in the UK. This includes costs for personnel, screening equipment, and technology.
Safety and Environmental Compliance: Compliance with environmental regulations (like noise pollution control) and safety standards imposed by aviation authorities.
Capital Expenditures (CapEx)
These costs are related to infrastructure development, and they represent significant, often long-term, investments:

Terminal and Runway Expansion: New terminals, runway expansions, and gate installations, especially in high-traffic airports, can be major capital expenses.
Technology and Infrastructure: Investment in IT infrastructure, such as baggage handling systems, air traffic control technology, and passenger processing systems.
Maintenance of Aging Infrastructure: Runway resurfacing, terminal refurbishment, and other upgrades to ensure smooth operations.
3. Balancing Costs and Revenues
The financial health of an airport hinges on balancing these costs with revenues. Airports with a large portion of non-aeronautical income can typically withstand fluctuations in airline traffic better than those relying mainly on aeronautical revenue.

Traffic Sensitivity: Airports with high non-aeronautical revenue are often less vulnerable to fluctuations in passenger traffic.
Passenger Throughput: Higher passenger volumes often increase non-aeronautical revenue, particularly from retail and food & beverage sales.
Cost Efficiency Measures: Larger airports may achieve economies of scale, but all airports benefit from cost-saving measures, such as automation, improved energy efficiency, and shared infrastructure partnerships.

Question 37

How does the fund structure work within Global Infrastructure Deals work?

Answer 37

1. Barings Global Infrastructure Debt Fund
   
   • Structure: This fund is structured as a closed-end vehicle, targeting institutional investors. It focuses on senior secured debt investments in infrastructure projects across OECD countries.
   • Investment Focus: The fund invests in sectors such as transportation, energy, utilities, and social infrastructure, aiming to provide stable, long-term returns.
2. Barings Target Yield Infrastructure Debt Fund
   
   • Structure: Launched in August 2022, this fund is a closed-end structure with a capital commitment of $630 million, surpassing its initial target of $500 million. It caters to a global investor base, including public and private pension funds and insurance companies.
     Barings
   • Investment Focus: The fund targets below-investment-grade debt assets across sectors like social and regulated infrastructure, renewables, transportation, and digital infrastructure, primarily in OECD countries.
     Barings
3. Barings Infrastructure Equity Fund
   
   • Structure: This open-end fund is designed for institutional investors seeking equity exposure in global infrastructure projects.
   • Investment Focus: The fund invests in equity positions within infrastructure sectors, including renewable energy, transportation, and utilities, aiming for capital appreciation and income generation.
4. Barings Global Infrastructure Fund
   
   • Structure: An open-end mutual fund available to both institutional and retail investors, offering daily liquidity.
     Investment Focus: The fund focuses on publicly listed infrastructure companies worldwide, providing diversified exposure to the infrastructure sector.

Question 38

What are recent deals in Global Infra Debt?

Answer 38

Renewable Energy Project in Europe
* Details: In 2023, Barings provided senior debt financing for a 200 MW onshore wind farm in Northern Europe. This project contributes to the region’s renewable energy capacity and aligns with sustainability goals.
* Unique Aspects: The wind farm is situated in a high-wind area, ensuring optimal energy production. It incorporates advanced turbine technology to maximize efficiency and minimize environmental impact.
* Investment Approach: Barings focused on the project’s strong contractual framework, including long-term power purchase agreements (PPAs) with reputable off-takers, ensuring stable cash flows. The investment aligns with Barings’ commitment to supporting sustainable energy initiatives.
2. Transportation Infrastructure in North America
* Details: Barings participated in a $500 million debt facility to support the expansion of a major toll road in the United States. The project aims to alleviate traffic congestion and improve regional connectivity.
* Unique Aspects: The expansion includes the addition of express lanes equipped with dynamic tolling systems to manage traffic flow effectively. The project has received strong support from local and state governments due to its anticipated positive economic impact.
* Investment Approach: Barings evaluated the project’s robust traffic studies and revenue projections, ensuring the debt service coverage ratio met their stringent criteria. The investment was structured with covenants to protect against potential revenue shortfalls.
3. Digital Infrastructure in Asia-Pacific
* Details: In early 2024, Barings financed the development of a data center in Southeast Asia, addressing the growing demand for digital services in the region.
* Unique Aspects: The data center is designed to meet Tier IV standards, offering high reliability and security. It is strategically located in a technology hub, providing low-latency connectivity to major markets.
* Investment Approach: Barings assessed the strong demand for data services in the region and the data center’s pre-leasing agreements with major technology firms. The financing structure included provisions for future expansion, allowing flexibility to scale operations as demand grows.
4. Social Infrastructure in the United Kingdom
* Details: Barings provided long-term debt financing for the construction of a new hospital in the UK, enhancing healthcare infrastructure and services.
* Unique Aspects: The hospital is part of a public-private partnership (PPP) and is designed to be a center of excellence for specialized treatments. It incorporates sustainable building practices and aims for a BREEAM Excellent rating.
Investment Approach: Barings analyzed the project’s fixed-price construction contract and the availability-based payment mechanism from the government, ensuring predictable cash flows. The investment supports Barings’ strategy to finance essential social infrastructure with strong credit profiles.

Question 39

Do you have any questions for me? Chris Presbie?

Answer 39

Thoughts on Fibre? What makes UK Hayes such an atttractive proposition? Solar? Internet?
Cultural Difference between US and UK business?

Question 40

What is your favourite excel formula?

Answer 40

INDIRECT is an Excel formula that allows you to reference cells indirectly by using text strings. In simple terms, instead of hardcoding a cell or range reference, INDIRECT turns text into a cell reference, making your formulas more flexible.

1. Dynamic Referencing: INDIRECT lets you pull data from various sheets or ranges based on cell values that may change. This flexibility is great for summary reports where source data locations might vary.
	○ Example: If you have different sheet names in a cell (say A1 contains "Sheet2"), you can use =INDIRECT("'" & A1 & "'!B2") to pull data from cell B2 in "Sheet2" without hardcoding "Sheet2" directly in your formula.
2. Building Dynamic Ranges: INDIRECT is invaluable for defining dynamic ranges based on changing criteria.
	○ Example: If B1 holds a column number, you could use =SUM(INDIRECT("A1:A" & B1)) to sum a variable range that adjusts as B1 changes.
3. Reference Shifting with Flexibility: INDIRECT is especially powerful in templates, allowing users to pull from multiple sources based on criteria without changing the main formula structure. A Small Drawback: INDIRECT recalculates each time Excel updates, which can make it slower for large datasets. It also doesn’t work with references to closed workbooks, so it’s best for dynamic, open workbooks.

Question 41

Do you have any questions?

Answer 41

My end goal is really to be an analyst at Barings, what skills do you see from those who are successful in reaching that goal?

How best would you advise me to prepare for the internship? I’ve heard from others that Barings often demands a high skill threshold.

One of the things I really like about Barings is the more flat and entrepreneurial culture, I’ve heard from past interns that the CEO even talks to the interns and does a quick Q&A. Is this something that is emphasised a lot? What would you say are the most unique parts of Barings culture from your interactions with them?

What is the rest of the process like?

Is there anything in my skills or experience where you’d like more clarification

My aim is to be a full-time analyst at the firm, what can I do to make myself ready for the internship?

What has set apart previous interns in the past?

What roles do interns at Barings often take up?