REPE Technicals

Based on the most helpful WSO content, here are some insights on what to expect in terms of technical questions for REPE firms like Ares, Starwood, or KKR:

1. Financial Modeling:

   • Expect to be tested on your ability to build and interpret financial models, including DCF, M&A, LBO, and Comps.
   • You might be asked to model out cash flows and perform due diligence.

2. Valuation Techniques:

   • Be prepared to discuss various valuation methods such as Net Asset Value (NAV), Internal Rate of Return (IRR), and Cap Rates.
   • Understanding how to value properties and portfolios is crucial.

3. Market Knowledge:

   • Firms may test your knowledge of the real estate market, including current trends and key players.
   • You should be familiar with major REPE firms and their recent transactions.

4. Deal Structuring:

   • Questions may revolve around structuring deals, including financing options and risk assessment.
   • You might need to discuss how to approach acquisitions, dispositions, and refinances.

5. Technical Skills:

   • Proficiency in Excel and financial modeling software is often tested.
   • You may be asked to complete a case study or a technical test involving real estate financial analysis.

6. Scenario Analysis:

   • Be ready to perform scenario analysis and stress testing on financial models.
   • Understanding the impact of different variables on property performance is key.

For more detailed preparation, consider exploring the WSO Free Modeling Series, which offers lessons on financial statement modeling, DCF, M&A, LBO, Comps, and Excel Modeling. This can provide a solid foundation for the technical aspects of REPE interviews.

Good luck with your interview!

Sources: Starwood Capital Group vs. Ares REPE vs. Blackstone REPE vs. MSREI vs. General REIB, —, Ask Me Anything: REPE Investment Professional, PE recruiting technical questions (software specific), Real Estate Megathread - The Best RE Posts on WSO