This case won the Finance, Accounting and Control category at The Case Centre Awards and Competitions 2022. #CaseAwards2022
View photos and video from the awards presentation on 12 May 2022.
Who – the protagonists
A small team of professionals, part of Antin Infrastructure Partners, a private equity firm focused on infrastructure investments.
What?
The team is working intensely on a possible bid by Antin’s Fund I for over 2,000 telecom (cell) towers put up for sale by French telecommunication giant Bouygues Telecom.
Why?
The team think the towers, though not a typical infrastructure, satisfy Antin’s investment criteria of safety and value-creation potential. By creating France’s first independent tower company (a towerco), it hopes to get more mobile network operators to set up antennas on each tower.
When?
In early 2012, only a few years after the difficult launch of Antin’s maiden fund (Fund I) in the midst of the financial crisis.
Where?
Antin is set up in Paris and London, and its Fund I’s portfolio companies are located across Europe. Bouygues Telecom’s towers cover the whole territory of metropolitan France.
Key quote
What next?
The team must soon present the investment thesis to Antin’s Investment Committee. Can they build a strong case for the investment while keeping cool enough heads to walk away from it if needed?
This is the second Case Award for Denis Gromb after previously winning this category in 2018. It is the fourth win for HEC Paris.
Winning the award
Denis said: “It is a true honour. The award is also particularly pleasing because the case comes out of a partnership between Antin and HEC Paris, and of a challenge we set out for ourselves with the team at Antin: explaining private equity’s role in the infrastructure space in a way that was both accurate and accessible.”
Case popularity
He explains: “I think the case works on several levels. First, it provides an overview of the topic, infrastructure and private equity, for smart novices and then deep dives into a specific investment in telecom towers. Thus, the less experienced get a good understanding of the big picture, as well as an inside view of this activity.”
Writing the case
Denis reflects: “The key challenge was also a personal treat. The Antin team educated me on all facets of their work: investor relations, investment decision making, legal and financial structure of deals, performance improvement, etc. They were very generous with their time and knowledge, and this made all the difference. A particular highlight for me was simplifying their Excel model from several 1,000 cells to 100 cells to make it manageable for students!”
Case writing advice
He comments: “I don’t know that I have tips that work for everyone. I like a case with a clear and simple line; with Antin, learning about private equity and infrastructure in general and in a specific investment, but with a number of other issues that the instructor can tap into or not depending on the participants, course plan or how the class discussion develops on the day. The case has many of those and they are covered in detail in the teaching note.
“Oh, here’s a tip for everyone: a good case has to have a good teaching note!”
Teaching the case
Denis said: “I have used this case at HEC Paris for MBAs and executives, while some of my colleagues have used it for undergraduates. It has been used successfully at quite a few other schools too across a range of programmes. If I had to highlight two things that work particularly well, I would say:
- the step-by-step instructions to build a simplified investment model helps students understand the model’s logic, and they can then use the model in different scenarios
- the video on the investment in the telecom towers. I play it or post it at the end of the session and students realise they understand it while they would not have at the start of the session.”
Final word
He concludes: “One thing I did not expect is how the class evolves over time because this is such a dynamic industry. For instance, since I started using the case, Antin has opened offices in New York, raised several new funds, started their NextGen initiative focused on the next generation of infrastructure, and has become a publicly listed company via an IPO. There’s always something new to talk about.”
Discover how this case works in the classroom.
“This case is excellent and it has become my go to case for my private equity sessions. The videos with Antin's managers bring the case alive. The detailed valuation template allows students to understand all the steps behind a valuation in a structured yet deep way. The case also has the advantage of allowing educators to talk about infrastructure finance, which is a topic not usually covered in cases.
“All in all, it is an outstanding case that deserves all the praise it gets. I have used with more than 600 students and they really enjoyed it.”
“This is one of the best cases to bring to light the financial decision-making process of private equity firms. Through the case, students learn about the structure of private-equity funds, the investment profile of such funds, and the valuation process of private-equity deals.
“One of the highlights of the case is the excellent valuation template which allows students to build a proforma balance sheet, income statement, and cash flow projections to evaluate the Antin TowerCo deal.”
The case
Who – the protagonists
A small team of professionals, part of Antin Infrastructure Partners, a private equity firm focused on infrastructure investments.
What?
The team is working intensely on a possible bid by Antin’s Fund I for over 2,000 telecom (cell) towers put up for sale by French telecommunication giant Bouygues Telecom.
Why?
The team think the towers, though not a typical infrastructure, satisfy Antin’s investment criteria of safety and value-creation potential. By creating France’s first independent tower company (a towerco), it hopes to get more mobile network operators to set up antennas on each tower.
When?
In early 2012, only a few years after the difficult launch of Antin’s maiden fund (Fund I) in the midst of the financial crisis.
Where?
Antin is set up in Paris and London, and its Fund I’s portfolio companies are located across Europe. Bouygues Telecom’s towers cover the whole territory of metropolitan France.
Key quote
What next?
The team must soon present the investment thesis to Antin’s Investment Committee. Can they build a strong case for the investment while keeping cool enough heads to walk away from it if needed?
Author perspective
This is the second Case Award for Denis Gromb after previously winning this category in 2018. It is the fourth win for HEC Paris.
Winning the award
Denis said: “It is a true honour. The award is also particularly pleasing because the case comes out of a partnership between Antin and HEC Paris, and of a challenge we set out for ourselves with the team at Antin: explaining private equity’s role in the infrastructure space in a way that was both accurate and accessible.”
Case popularity
He explains: “I think the case works on several levels. First, it provides an overview of the topic, infrastructure and private equity, for smart novices and then deep dives into a specific investment in telecom towers. Thus, the less experienced get a good understanding of the big picture, as well as an inside view of this activity.”
Writing the case
Denis reflects: “The key challenge was also a personal treat. The Antin team educated me on all facets of their work: investor relations, investment decision making, legal and financial structure of deals, performance improvement, etc. They were very generous with their time and knowledge, and this made all the difference. A particular highlight for me was simplifying their Excel model from several 1,000 cells to 100 cells to make it manageable for students!”
Case writing advice
He comments: “I don’t know that I have tips that work for everyone. I like a case with a clear and simple line; with Antin, learning about private equity and infrastructure in general and in a specific investment, but with a number of other issues that the instructor can tap into or not depending on the participants, course plan or how the class discussion develops on the day. The case has many of those and they are covered in detail in the teaching note.
“Oh, here’s a tip for everyone: a good case has to have a good teaching note!”
Teaching the case
Denis said: “I have used this case at HEC Paris for MBAs and executives, while some of my colleagues have used it for undergraduates. It has been used successfully at quite a few other schools too across a range of programmes. If I had to highlight two things that work particularly well, I would say:
- the step-by-step instructions to build a simplified investment model helps students understand the model’s logic, and they can then use the model in different scenarios
- the video on the investment in the telecom towers. I play it or post it at the end of the session and students realise they understand it while they would not have at the start of the session.”
Final word
He concludes: “One thing I did not expect is how the class evolves over time because this is such a dynamic industry. For instance, since I started using the case, Antin has opened offices in New York, raised several new funds, started their NextGen initiative focused on the next generation of infrastructure, and has become a publicly listed company via an IPO. There’s always something new to talk about.”
Instructor viewpoint
Discover how this case works in the classroom.
“This case is excellent and it has become my go to case for my private equity sessions. The videos with Antin's managers bring the case alive. The detailed valuation template allows students to understand all the steps behind a valuation in a structured yet deep way. The case also has the advantage of allowing educators to talk about infrastructure finance, which is a topic not usually covered in cases.
“All in all, it is an outstanding case that deserves all the praise it gets. I have used with more than 600 students and they really enjoyed it.”
“This is one of the best cases to bring to light the financial decision-making process of private equity firms. Through the case, students learn about the structure of private-equity funds, the investment profile of such funds, and the valuation process of private-equity deals.
“One of the highlights of the case is the excellent valuation template which allows students to build a proforma balance sheet, income statement, and cash flow projections to evaluate the Antin TowerCo deal.”
