Blackrock PEP - LBO Modeling Test & Case Study

Wondering if anyone has insights into Blackrock's PEP modeling test and the following  case study? Time is limited to 60min which seems to be on the shorter end for doing both the model plus the case incl. writing up a short investment memo. 

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Based on the most helpful WSO content, here are some insights and resources that might help you prepare for BlackRock's PEP LBO modeling test and case study:

  1. Time Management:

    • Given the 60-minute time constraint, it's crucial to practice efficient time management. Break down your time allocation:
      • Modeling: 30-40 minutes
      • Case Study & Investment Memo: 20-30 minutes
  2. Modeling Practice:

    • Focus on the key components of an LBO model:
      • Assumptions: Revenue growth, margins, capex, working capital, etc.
      • Sources & Uses: Debt, equity, transaction fees.
      • Financial Projections: Income statement, balance sheet, cash flow.
      • Debt Schedule: Interest expense, principal repayments.
      • Returns Analysis: IRR, MOIC.
  3. Case Study Preparation:

    • Be ready to quickly analyze the provided information and identify the main investment thesis.
    • Structure your investment memo concisely:
      • Introduction: Brief overview of the target company.
      • Investment Thesis: Key reasons for the investment.
      • Financial Summary: Highlight key financial metrics from your model.
      • Risks & Mitigants: Identify potential risks and how they can be mitigated.
      • Conclusion: Summarize your recommendation.
  4. Resources:

    • Private Equity Interview Bootcamp: This course offers detailed PE LBO tests and case studies, which can be very useful for practice.
    • Private Equity Master Package: Includes LBO modeling and PE deals process training, providing comprehensive preparation.

For more detailed practice and resources, you can explore the following: - https://www.wallstreetoasis.com/forum/private-equity/modeling-testscase…</a">Modeling tests/case studies to share? - Private Equity Interview Course: Offers 9 LBO modeling tests and more.

By leveraging these resources and practicing under timed conditions, you can improve your efficiency and accuracy for the BlackRock PEP modeling test and case study. Good luck!

Sources: Modeling tests/case studies to share?, https://www.wallstreetoasis.com/forums/anyone-willing-to-share-a-pe-interview-case-study?customgpt=1, Blackrock Hirevue Interview Tips and Overview, Anyone have insights on the litigation consulting industry?, Does BlackRock use hair testing for their interns?

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It’s a very basic LBO model with cash sweep. Not designed to trick you. Either you know how it works or you don’t.

The memo/case goes very quickly. You’ll be given a mini-CIM (around 10 pages) and asked to write a short summary in Word of what you like and don’t like about the deal, what your recommendation is, and any next steps.

 

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