Hi, I have an upcoming interview for an analyst position, what technical questions, if any as most experiences described on here suggest behavioural/fit orientated questions, are likely to come up? This is for analyst 1 at a $2bn REPE firm.
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You need to provide more information.
What is the scope of the fund?
Core, Core+, Value add or opportunistic? could of course be everything
office, residential, retail logistics etc.
They're going to ask you everything under the sun related to real estate investments. I hope you're prepped...
Jk, we need more info as said above. First round phone interview or in-person second round? What type of firm? Asset type? Region? Fund strategy?
Thank you both. It is for Industrial acquisitions and development covering the whole of the US. Mixture of family money and institutional money for their backing. It is the 2nd round in-person, first round was 30 minute brief telephone discussion around CV, experience etc.
You're sure it's just a verbal technical interview right? In my experience, all my REPE interviews just put me through a modeling test. I did interview with an Industrial REPE (~$500mm AUM) shop once. He gave me an OM and 4hrs to model it out...no Argus...obviously i didn't even come close to completing it because I spent 2hrs just filling in the rent bumps for 13 tenants across 10 years (the MD/interviewer was an idiot). But in the interview, questions he asked me were about the fund, what their strategy is, what types of industrial properties they target, target returns etc... My background has primarily been in residential investments, so type of tenant and tenant quality is less important. So he asked me the question "if you have 2 industrial properties that are next to each other and are physically identical, what would make 1 property a better investment than the other (or something along this line). The answer was the type of tenant.
As for technical questions, I would expect the general cash flow modeling/DCF/LBO questions...Walk him to NOI/cash flow to equity, what is IRR/EM and how to calculate, what is a waterfall/how to model it, what to sensitize in a sensitivity analysis etc...the interviewer may also dig into your assumptions like growth rates and operating expenses and ask you how you would get these figures.
Agree on the above.
Dig in to the value drivers of industrial assets (last mile delivery, floor to ceiling height, how much space is required for trucks to turn, loading stations and so on - this would give you an edge if you had some knowledge)
is it a multi tenant assets be aware of lease lengths (WAULT) and assume you need some TIs to refurbish when churn is happening.
Think about how to model it, is it a value add case that is driven by the value added during holding (IRR driven) or is it a core/core+ where you look at the equity coupon you pick up every year (read long term investment).
Quick question - when you’re mentioning all the industrial facility points above (height, quick turn etc(, are those the attributes that the better more commercial enterprise industrial tenants will often demand? Is it one size fits most of the best tenants. Or are those attributes better to control your costs. Or mix of both. Sorry if it’s a really general question. I’m not as familiar with industrial
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