Hi All, in terms of a short modeling test for an infra asset (for example PV, Wind, BESS [renewables]), how would you determine a fair hurdle rate for an investment? What other metrics might you look at to drive an investment theses (MOIC? Cash-on-cash return? Return on Invested Capital? Any insight at all from the group is highly appreciated!

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For the hurdle rate I look at the developer’s cost of capital (wacc).

For the performance metrics, cash on cash return, MOIC, and ROIC are the big ones (with IRR easily the most common). Some consider ROCE as well.

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Thanks. All really helpful. As far as Beta is that necessary for the CAPM calculation?

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Good morning everyone, I am looking at breaking into Project/Infrastructure Finance, any recommendations/suggested banks where is better to start? I have two previous internships in IB (M&A and LevFin) and have been working for the last year in the PE team of an institutional investor (main FoF activity). I have also completed a Project Finance course on Coursera. Thank you in advance!

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