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Comments (14)

  • mr1234's picture

    doesnt make sense.

    i interviewed with an re fund with over $30B AUM and i was given a case study that i cracked in like 30 mins.

    your headhunter must smoking dope. s/he probably meant that you would be in the office interviewing for 5 hrs, including a modelling test.

    ---
    man made the money, money never made the man

  • bankerchic's picture

    I would also be prepared to model in a waterfall / promote structure and various debt scenarios. Be able to calculate returns both at the asset and fund level.

    I'd say you're correct that you won't be modeling LBOs. However, you will definitely need to have a basic understanding of how promote structures in RE PE work.

  • NPV Positive's picture

    5-6 hours seems a bit long. The RE mega-fund ($40+ billion) I work at doesn't do modeling tests, although interviews can get very personal (all fit based) or depending on who interviews you, very technical. If I had to imagine what the modeling test might look like, I would say you're most certainly going to have to load-up a past deal. You'll probably get an OM, an ARGUS file, and a set of the firm's standard underwriting assumptions. From there you will have to rebuild the ARGUS file using the firm's assumptions and create a DCF model in Excel (or edit an existing template). Once everything is tied together, they'll definitely have you walk the interviewer(s) through the model.

    If you come from an acquisitions background, this whole process shouldn't take you more than an hour for a single office building; no more than 3 hours for a portfolio (3+ properties). Good luck!

  • International Pymp's picture

    Lol. It all sounds good and building the model would clearly not be a major problem except for one thing... I don't have ANY experience with Argus. Any recommendations on some sort of intro training I should do for Argus... Even if it's some sort of expensive training course, I'm not worried about cost only worried about the quality.