MF REPE technical questions
Preparing for an interview at BX/Carlyle. I come from a generalist M&A background and have had a few PE interviews in the past, however I have very little experience with REPE technicals and don't know much apart from the basics. In all honesty, I am lost and not sure where to begin.
In the initial interview rounds, what should I expect in terms of technical questions - is it more similar to classical PE technicals (company-level rather than property/asset) considering the way these firms invest in RE?
Any good guides that you would recommend? Many thanks in advance!
If it’s BX - expect a ton of mental math returns questions…there’s a thread on here that breaks out a lot of them that are asked. An example is cap rate is X, LTV is X% at an X Rate, what is the cash on cash… there’s a ton of others but that’s one that will be asked 100%
Helpful thank you, what about real estate pro-forma? How important is that?
There’s a case study and you will be asked to build one in their office.
Is there any info missing here? I don't know how I'd arrive at a CoC % given those assumptions... so bow me out of the BX recruiting I guess?
No info is missing. If they give you a 10 cap, assume PP is 100, and NOI is 10.
From there, you have 50% LTV (I said they’d give an LTV and a rate on the loan, so let’s assume 50% LTV)
so you know on a $100 PP, the equity you invested is $50.
Now let’s say the rate is 5% which means debt service is $2.5. So $10 (NOI) - $2.50 (debt service) = $7.5 which is cash flow after debt service.
cash on cash would be $7.5 / $50 and you’d have to do the long division on paper (or mentally if you’re that good) to give them the percentage.
I interviewed with bx years ago (fuck I'm old), as mentioned by the other user they focus a lot on mental tests etc (at one point there's a math session with 10/15 gmat-style exercises).
Anyway, just to focus on the basics, make sure you have these things covered
Super helpful, thank you. Not sure if you remember, how many rounds are there? Analyst role
I'm from Europe, no idea about US. Anyway, from what I've been told there are a ton of rounds - around 10 afaik. I went through pymetrics, 2 interviews and the math test and then I was rejected.
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