RE Debt Interview
I have an RE Debt interview with a Principal in the first round - pretty well regarded firm. I’m not sure what to expect on the technical side (nor really the non-technical either) - what questions could I expect and how could I best prepare myself with limited time? My experience is predominately on the equity side, but we have offered preferred equity during 2H22 just based on the fact that we were trying to catch our aggressive sponsors who needed funding on multifamily deals. Any help is greatly appreciated!
Think he will ask you to walk him through the deal and get into the details of cap stack, LTV, DSCR, debt yield etc. I would expect him to ask all the general questions such as risks of the deal, investment thesis, why did you like the deal etc. Given the current market environment I would prepare some investment ideas (ie would you invest in offices right now (yes / no and why), where do you see the best opportunities to invest right now (asset classes and cities / geographies). I suggest to watch some recent interviews from BX / Ares / KKR to get the colour on the market.
Also def revise the math on bond yield calcs etc (if you give a 100m loan for 5 years with 5% all in rate and then after 5 years you get back the full amount of 100m, what’s your debt yield and what’s your IRR?)
What’s the answer and math to the bond yield question if you don’t mind my asking?
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