Tactical Opportunities Blackstone First Round Interview
Hi all, I have a first round video interview with someone from the Tactical Opportunities group at Blackstone tomorrow for a summer 2021 internship. I don't really know any technicals. Does anyone know how technical these interviews will be? Thanks.
If you don't know technicals you don't deserve the role. You're going to fail it. Go pay your dues in banking, learn some technicals and come back. Undergrad PE/buyside roles are not for people who decide to take a random stab at it. It is for people who are top of their class and have taken the time to work for it.
sorry to hear you didn’t make it past the resume screeners
you sound fun
I don't get why everyone is upset? Telling a kid who has evidently not done any prep or doesn't have a genuine interest in finance that he does not have a shot at interview. It is a harsh reality
Isn’t the fact that he is here, asking for opinions, somewhat a prep? At least he is asking right, so why are you shitting on him?
Got the phone interview one year ago, for an off-cycle in the team (London) Made it to the second round but did not receive offer.
I remember having 4 or 5 exercises during each interview, during which they assess how much you understand finance (not so technical, more about reasoning)/the unusual instruments that can be used by Tac opps (Preferred Equity, etc)/how well you think.
It is quite similar to PE interviews though, and not that complicated.
Examples of a questions I can remember:
-You have a company. In the final year of the investment (year of sale), you have the choice between having a 1m release in Net Working Capital and +1m in EBITDA, what do you prefer? Then, what EV/EBITDA sale multiple is needed to be neutral between a 11m release in NWC and 1m incremental EBITDA?
-Is Tac Opps more or less risky than classic buyout?
-classic paper LBO
-You have two dice. What is the probability of having a 8?
Sure!
You have a company. In the final year of the investment (year of sale), you have the choice between having a 1m release in Net Working Capital and +1m in EBITDA, what do you prefer?
a) +1m in NWC means +1m in FCF, so your PE fund will sell 1m more expensive (due to more treasury)
b) +1m in incremental EBITDA means 600k in FCF (considering 60% cash conversion rate from EBITDA to FCF, because we almost only have taxes, given it is incremental EBITDA) But, if you sell at 10x EBITDA for instance, it means you can sell 10m more expensive. So, the PE makes a total of 10.6m if the EBITDA increases of 1m -> you choose the EBITDA increase of 1m
What EV/EBITDA sale multiple is needed to be neutral between a 11m release in NWC and 1m incremental EBITDA?
We write an equation: Gain from NWC increase = Gain from EBITDA increase
Gain from NWC increase = 11m
Gain from EBITDA increase = 600k + 1m x Sale Multiple
11m = 600k + 1m x Sale Multiple
-> If the sale multiple is 10.4x, the PE makes as much money if the NWC increases by 11m or EBITDA increases by 1m
Hope it is clear