LBO Modelling Test - KKR & Blackstone
Hey,
Did anybody take or have any info on 90 min LBO Modelling Test for Blackstone and/or KKR? Any info/tips/resources appreciated.
- Both for PE
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London?
yes sir
..
please share
Can you share with me as well? Thanks
The case study is likely going to be one of the following:
(1) 90 minutes to create a full three-statement LBO model from scratch
(2) 90 minutes to create an LBO model based on a partially filled-out template and create a brief investment memo on the prospect
90 minutes really isn't a lot of time, so the cases are usually extremely boilerplate (even at Blackstone/KKR). If you want prep materials or additional advice, please PM me.
Can you give examples of what boilerplate is? Simple like management rollover / refinancing or should we be prepared for something like a divestiture / add on M&A midway through?
The examples below are based on the two case types I laid out above. Note that you can literally just use a CIM, investor presentation or 10-K with the below prompts for practice. For context, the 1st prompt below was given out with a CIM during on-cycle last year and that was the entire case study.
In terms of your question on management rollover/refinancing, I've seen management rollovers in on/off cycle case studies, but I have never seen a case that asks for a refinancing. Additionally, I've never seen a 90 minute case include divestiture or M&A scenario either, as 90 minutes is usually barely enough time to just complete the standard three statements.
(1) 90 minutes to create a full three-statement LBO model from scratch
1. Build a full 3-statement (Income Statement, Cash Flow Statement and Balance Sheet) LBO model starting from blank excel sheet
2. Time limit: 90 minutes
3. Use the CIM to develop a projection that you think is reasonable based on your understanding of the company. Prioritize building a functioning model over developing assumptions – there is no pass/fail for reasonableness of the projection
4. Don't plug balance sheet
(2) 90 minutes to create an LBO model based on a partially filled-out template and create a brief investment memo on the prospect
Essentially the same instructions as above, but would include the following prompt :
In the event you have time, please prepare a brief summary that addresses:
Summary of opportunity and recommendation
Investment thesis and expected returns
Strengths and risks of the investment
Key diligence questions you might ask in a meeting with management
thanks! pmed you
Is this for analyst?
Can you PM me your materials?
Please share also
Is London KKR Analyst recruiting ongoing now? Thought process was closed since September
Could you kindly share with me as well please? Thanks a lot
me too please
same here, would appreciate it a lot!
Could you DM me with materials too please?
Could you share materials here as well? Many thanks!
Yes me too please! Many thanks!
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