Investment Analyst - Prudential Private Capital (PPC) FT 2021

Does anyone know a decent amount about this group? I applied for this last week and got picked for a first round interview (I have a background in corp fin at a large AM) and am curious as to if anyone knows what the culture is like, general exit opps, thoughts on the program itself and any tips for preparing for the interview. First portion is strictly behavioral questions and the second portion is specific to the business unit. The job description is as follows:

**As an Investment Analyst, you would work on a small deal team responsible for underwriting, portfolio monitoring and marketing, while getting the chance to develop your analytical skills and learn to think like a buy-and-hold investor in a three-year analyst program. You will learn about investing private placements of senior debt and junior capital within a variety of industries from large, multi-national companies to smaller, privately-held companies. Many of our analysts move on to attend top business schools and have received a variety of opportunities within the industry at the close of the three-year Investment Analyst program.

Job Responsibilities:
Write internal credit memos
Industry and company research
Comparable analysis
Financial modeling and credit analysis
Transaction and due diligence support
Portfolio and credit monitoring
Communication with portfolio companies
Prepare marketing materials**

 

All I could find for SA was the Dallas energy group. Is that the only slot open?

The important thing is never to let oneself be guided by the opinion of one's contemporaries; to continue steadfastly on one's way without letting oneself be either defeated by failure or diverted by applause.
 

shoot I already did the hirevue but any prep would be much appreciated! pm me and we can talk. and honestly not sure, I was slightly surprised but at the same time i’m definitely really excited about the role

 

"Prudential Private Capital (formerly known as Prudential Capital Group) is the private capital arm of PGIM, the $1.2 trillion global investment management business of Prudential Financial, Inc. (NYSE:PRU). Expertise, analysis, and experience drive everything we do."

 
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Interviewed many years ago for the Prudential Capital Group Investment Analyst role at their NYC location.

First Round was mostly behavioral. In fact, I cannot recall if technicals were included in this round.

Superday was a written test and interview with different members of the team with a mix of technicals and behaviorals. Didn't land the role but the competition was stiff (one of the people interviewing was a guy from IB who was looking to pivot into something else, which I found amusing since I was desperately pushing to land a FT IB role at the time).

 

The role is underwriting and performing credit analysis on mostly mid-sized private debt deals. From my understanding deal teams are usually pretty lean so you get good experience early on. Also, depending on your geographic preference will determine what industry you are focused on. For example, I know Dallas is energy, New York is corporate finance, and Newark is infrastructure. So depending on where you are placed will determine what type of deals you work on. I think it’s a really good starting position if you’re interested in private placements.

Also, for those who are confused Prudential Private Capital was rebranded a few years ago and used to be known as Prudential Capital Group.

 

Correct except the last part - Prudential Capital Group is the dedicated mezzanine arm of the debt fund, while Prudential Private Capital is mostly senior / investment grade. 

 

They are separate from Pru’s core fixed income. The core group your referring to is mostly focused on public fixed income, whereas this is private. They are two completely separate and different asset managers under the PGIM umbrella.

For the private space there are offices in both New York and Newark. The private space operation is kind of decentralized so there’s office all over the U.S. and depending on your office will determine the deals you work on. NYC is more concentrated on Corporate Finance, whereas Newark specializes on infrastructure and leasing. Other offices will have other specialities too.

 

Technically buy-side, as they are an arm of Prudential Global Investment Management, but they mainly focus on private lending (which is way different than buyouts or public markets investing, the main things that come to your head when you think of the buyside)

 

Just got accepted for round 1 HireVue for the same pos. Could anyone share which type of questions to prepare for during the business aligned round 2 interview? Think I chose NY as my preferred location, followed by NJ. Also, are there multiple tries for each Q? Would suck if there's only 1 attempt.

 

7 behavioral, 3 (I would hardly call) technical. Just know simple debt metrics and ebitda

 

Took the HireVue a few weeks ago. For all y'all asking, it was Two Separate HireVues,

One being all behavioral questions like (When is a time you exceeded expectations yadda yadda)

and the other HireVue was 3 Technical Questions about basic Accounting Things (think of all those Ratios you used in your intro accounting class about Debt and Capital etc).

No there isn't a chance to retake, you only get 30 Seconds to prep each question. So I would say practice some basic accounting ratios. :)))

 

Interview Prep RB2000 & GoldMen's Sacks  & @rogerthat317" , @nontargetscum" - I can send lev fin/direct lending interview prep materials for next time- hit me up (market updates, primers, exercises, whatever)

here's what I wrote in the Bain Credit Interview thread https://www.wallstreetoasis.com/forums/bain-capital-credit-sa-first-rou…

Interview Prep

1) Read loan market updates (weekly/Q) - LCDcomps.com / LevFin Insights (LFI)

2) Loan products (RC/TLA/1L TLB/2L TL/Unitranche) - get comfortable distinguishing btw lender/investor, general characteristics

  • -Revolver/Term Loan A (banks, less leverage, covenants, 5yr tenor, pricing is lower, amort on TLA)
  • -Term Loan B: 1st Lien TLB / 2nd lien TLB / Unitranche (institutional investors, more lev, possibly cov-lite, higher pricing, 1% amort - 1L/2L - no amort, etc.)

3) Direct Lending vs. Broadly Syndicated - Execution Strategy - know the diff considerations from borrower perspective

  • certainty of funds, speed of execution, albeit at a higher price/fees most likely, deal w/ 1 lender vs. a group of lenders, etc.) - read Direct Lending primer

4) Underwriting Fees & Flex - LBO: RC / 1L TLB / 2L TL. Typical fees and flex, normal market:

  • RC/1L 2.25% (125 bps flex)
  • 2L 2.75% (150 bps flex)
  • Privately placed 2L 0.25% to 0.50% UW Fee (priv placed much more common today)

5) Credit Risks & Mitigants (Credit Strengths & Weaknesses) – familiarize yourself

  • -Ratings Reports – basically summarize this for you (create login – Moody’s and S&P – get free access to “Rating Action” reports)
  • Example:  eResearch Technologies (B/B3 CFR)
  • Revolver $200 / 1st Lien TLB $1,155 /   Priv Placed 2L TL  $395
  • EBITDA $210
  • Leverage 5.5x/7.4x

Credit Strengths (Moody’s)

  • 1) significant  customer concentration (albeit across a number of different clinical trials) – could also be considered a weakness (customer concentration)
  • 2) strong market position in the niche electronic based clinical outcome assessment market,
  • 3) solid growth prospects driven by favorable industry fundamentals,
  • 4) solid EBITA margins
  • 5) high revenue visibility provided by contract backlog.
  • 6) meaningful growth in the backlog in the last 6m indicates that the company has largely overcome the operating challenges
  • 7) revenue growth coupled with cost saving initiatives will drive earning expansion
  •  a) Moody's projects will reduce Debt/EBITDA to <7.0x in 2020

Credit Weaknesses (Moody’s)

  • 1) very high financial leverage - PF Moody's Adj. Debt/EBITDA:  7.9x
  • 2) elevated financial risk associated with private equity ownership evidenced by aggressively high initial debt levels following the proposed LBO
  • 3) aggressive track record of growth through debt-funded acquisitions.
  • 4) significant  customer concentration (albeit across a number of different clinical trials)
  • 5) risk that larger better capitalized companies could choose to pursue developing their own electronic clinical outcome assessments.
  • 6) recent revenue declines related to integration of the 4 recent acquisitions, to extend into early 2020.

Helpful links to comments I wrote on OID, All-in-yield calc, UW fees and flex, Term Loan A vs. Term Loan B. Hit me up if u want - happy to send materials / docs / primers, etc.

https://www.wallstreetoasis.com/forums/tla-vs-tlb-maturity-and-leverage#comment-2071053

https://www.wallstreetoasis.com/forums/oid-in-leveraged-loans

 

Did you hear back for the Chicago office or NYC office?

 

Hey I heard back from the Chicago office - has anyone gone through the superday there?

 

Not sure what the timeline is for PPC (which I applied to at the same time as 2 other groups at Pru), but I received my FT offer with the CIO group 9/18. If anybody has Qs, feel free to PM me 

 

I apologize for that! I heard back 2 hrs post-interview, though I'm not sure how normal that timing is. I'm joining the PE team w/i the CIO office. HR told me that my placement would be determined after the analyst class was finalized (so probably December-January), but I got placed early b/c I suspect the PE people who interviewed me wanted me on their team, so the head of the group reached out to me the day after I accepted the offer to set up a catch-up/intro call.

 

Case Study and interview for Prudential Private Capital for Chicago Office. Am FT BB Credit looking to lateral for something better.

 

lol it's been almost 4 weeks after I've submitted mine. Not sure what's going on, in the email they said they would respond within 3 weeks for me.

 

Conducting Teams interviews right now. Had a call with SVP on Tuesday and said they're finishing up 1st and 2nd rounds then will probably invite select candidates to interview in the office if possible... from how she worded it sounds not too structured and extremely laid back. Hardest technical I got was how to value private debt

 

damn tf, I never heard back. It's really not a big deal if I didn't get the interview, but from how they worded the email it seemed like they would at least let me know if I got rejected lol.

 

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