Investment banks play a crucial role in financing large-scale infrastructure projects globally. Construction project managers are highly sought after in infrastructure investment banking teams due to their deep technical expertise. This article analyzes the key skills, responsibilities, and career progression of construction project managers in infrastructure finance roles at investment banks.
Technical due diligence of construction risks is a core responsibility
Construction project managers conduct in-depth technical reviews of infrastructure projects seeking financing from investment banks. This includes assessing design plans, construction schedules, budget estimates, site conditions, permitting status, and overall executability. Project managers model project delays, change orders, and other risks to determine construction contingencies needed in the financing plan.
Quantifying execution challenges for sponsors is critical
A key part of advising infrastructure sponsors and investors is identifying weaknesses in a project’s execution plan. Construction project managers leverage their industry expertise to pinpoint flaws in construction timelines, budgeting, contractor qualifications, etc. Conveying these issues and quantifying schedule/cost impacts allows sponsors to mitigate risks.
Domain knowledge across sectors is valued
Project managers with experience across transportation, energy, social infrastructure, renewables, etc. can provide insights across a diverse range of deal opportunities. Bankers appreciate construction experts with multi-sector perspectives rather than narrow expertise in only one vertical.
Technical skills complement financial modeling
While financial modeling is core to infrastructure banking, technical project analysis is equally important. Construction project managers complement the core deal team by leading bottom-up reviews of engineering assumptions, operating parameters, capex plans, etc. This provides Checks & Balances on the financial model.
Industry relationships facilitate deal execution
Construction project managers utilize their industry network to supplement due diligence and financing execution. This includes tapping contractors, operators, suppliers, advisors etc. for data gathering, analysis, and arrangement of site visits. Existing relationships expedite the underwriting process.
Construction project managers play an integral role in infrastructure investment banking by conducting detailed technical diligence, advising on project risks and execution, and leveraging industry expertise. Their engineering backgrounds complement financial deal teams during underwriting and financing of projects.