Case Study Financial Sponsors Group

For a 90-minute case study or Excel exercise with a Financial Sponsors Group (FSG), especially at a large reputable bank and within an infrastructure team, here’s what you should anticipate and prepare for:

1. Focus on Leveraged Finance and Market Dynamics:

   • FSG roles often require a solid understanding of leveraged loan market dynamics and capital structures. Brush up on how to evaluate pro-forma combinations of businesses and capital structures, as this is a key part of their work.

2. Simplified LBO or Financing Scenarios:

   • While they mentioned it won’t be a "crazy" LBO, you should still expect a simplified version. This could involve:
     • Building a basic LBO model with assumptions around debt, equity, and returns.
     • Analyzing the impact of leverage on a company’s financials.
     • Calculating IRR or MOIC (Multiple on Invested Capital).

3. Infrastructure-Specific Considerations:

   • Since it’s for an infrastructure team, you might encounter scenarios involving long-term cash flow stability, regulated assets, or project financing. Be prepared to think about how these factors influence financing structures and risk assessments.

4. Excel Proficiency:

   • Expect to demonstrate strong Excel skills. This could include:
     • Building or modifying financial models.
     • Conducting sensitivity analyses (e.g., how changes in interest rates or leverage affect returns).
     • Creating clear and concise outputs (e.g., summary tables or charts).

5. Behavioral and Market Knowledge:

   • Interviews for FSG roles often include behavioral and market-heavy questions. Be ready to discuss:
     • How you approach problem-solving in financial scenarios.
     • Your understanding of current market trends, especially in leveraged finance and infrastructure.

6. Time Management:

   • With only 90 minutes, the exercise will likely test your ability to prioritize and focus on key deliverables. Practice working efficiently under time constraints.

Preparation Tips:

• Brush up on financial modeling basics: Ensure you’re comfortable with DCF, LBO, and sensitivity analysis.
• Understand leveraged finance concepts: Know how to evaluate debt structures, interest coverage ratios, and leverage multiples.
• Review infrastructure-specific case studies: Familiarize yourself with the unique aspects of infrastructure deals, such as long-term cash flows and regulatory considerations.
• Practice time-limited exercises: Simulate a 90-minute case study to improve your speed and accuracy.

By focusing on these areas, you’ll be well-prepared to tackle the case study and excel in the interview. Good luck!

Sources: Life In The Financial Sponsors Group, Barclays Financial Sponsors Group, Thoughts on Restructuring Groups?, How would you approach a 4 hour case study?, What banks / groups would you lever a GS offer for?