[Time Sensitive] Blackstone GSO SA Interview
I recently got invited to interview for Blackstone's 2021 GSO Originations SA program. First round either Monday or Tuesday. Not really sure what to expect. I'm a junior who spent this past summer working in the Credit wing of a large alternative asset manager (in the 35-45 Bn AUM range). However, while I got a lot of good experience there, given that the internship was shortened to 4 weeks and was online, I didn't end up with quite as much hands on / technical experience as I had hoped. Additionally, I'm a Political Science major at school so don't have a traditional finance education.
I was hoping to hear any advice on what sort of technicals to expect. I've reviewed all the IB guides thoroughly, but am not sure how relevant they will be when interviewing with a Credit focused group. Not sure if an in depth knowledge of Credit will be expected. If so, not sure what the best resources to turn to for prep are outside of reviewing my work from this past summer. I'd really appreciate any advice anyone might have.
bumping for u. Good luck!
Thanks!
Howd this go?
I haven't interviewed with them, but I have interviewed for Restructuring Investment Banking. I think you should expect questions about what affects the price of debt. How does a company become distressed? Capital Structure questions also will be common in my opinion (i.e. EV = 250, Debt = 300 (200 senior, 100 junior); What is the most you would pay for the junior debt?). I think understanding the different types of debt and different strategies that GSO does could also be relevant (i.e. is it loan-to-own, etc.) This is an important topic, so I hope some Blackstone people or other credit analysts can comment.
Yeah I think that makes sense. Definitely helpful, thanks. Wouldn't be surprised if I get some questions related to bankruptcy situations as well given that the group I was working for this summer invested in Chapter 11 proceedings. So will make sure to prep for all this kind of stuff. I guess a follow up would be where would you recommend turning for info on this sort of stuff / what resources did you use before your restructuring interviews? It seems somewhat hard to find good info on Credit related topics online. Anyways, really appreciate your thoughts, thanks again.
The Petition newsletter was very useful for me. (petition11.com). Also the restructuring section of the Breaking into Wall Street guide. Also searching up threads on this website about questions that candidates have faced. Another question I got in my interview was, "Why is the equity value not equal to zero when EV is less than the aggregate debt amount?" The answer I gave was that there is an equity call option, so the market cap can't be zero. A follow up on that question was "How would you price that option? I answered: you have to consider the strike date of the option and the date the company enters Chapter 11, because when the company enters Ch 11, equity shareholders usually get 0.
Good luck! Not too much to add here but just wanted to ask if this is an investing role? Does "origination" in Origination Summer Analyst mean less investing work
Yeah it's an investing role. It's technically just private originations - only includes their direct lending, mezzanine, and stressed / distressed debt strategies. Pretty sure their CLO, fixed income, and Energy sectors aren't taking interns.
Good luck, my friend!
Good luck, my friend!
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