6-hour Modeling test !?

Hi guys, 

First interview done, Great Industrial REPE Fund, received an email for a 6-hour "modelling exam". 

Job Title "REPE Debt Analyst", finance team, working on acquisitions but not only (relations with lenders, debt modeling, debt origination...) Not too many employees so varied role.

What can I expect from a 6-hour test!? I'm not from RE neither PE maybe it's their regular 3-hour one but doubled time regarding my profile? Can I ask him for some guidance regarding the exam? 

I have a model from their fund that a previous analyst sent me (3-hour), I made it in 25 minutes without the sensitivity analysis and another analyst told me that he's been hired fu***** up his modeling test... I'd be glad to send the "old" test in private message to anyone that can help ahah!

Thanks for your return guys!

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Comments (14)

Nov 23, 2020 - 11:15am

Thanks! I emailed them, due to the lockdown (French in London) it's going to be from home without any presentation I think.

Pm from a previous analyst of the fund: « Sounds like a take home - should take 2hrs.
He's probably giving you flex »

I can remember him saying during the interview « if you go to the next step you'll receive an excel exam 6-7 hours. Of course you're not obliged to use the 6 hours »

I've worked a lot on acquisition modeling, as the role is based in the debt / finance team I hope it's going to be an acquisition test still but maybe with the building of an amortization table and let's say assumptions regarding a development loan first and then another loan?

Nov 23, 2020 - 1:27pm

Answer from the Principal: "6/7 hours for the test as it involves a case study with an excel modelling exam and preparing a presentation but it is up to you how quickly you submit."

I guess the case study will be "classic" but regarding the presentation I'm trained for DCM... Any materials I can find for this? Thanks a lot guys

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Most Helpful
Nov 23, 2020 - 3:17pm

Keep it simple, summarise the transaction, outputs showing key figures / credit metrics etc, sensitivity analysis showing at what point they'd breach hypothetical covenants etc. If you are given a location for the transaction include some market info and context as to whether the value sounds reasonable vs. high level market info.

Nov 26, 2020 - 5:27am

Thanks vm guys! 

Quick question: Should I use "named cells" or it's worthless for such an excel exam? 

3 hours test sent by a previous Analyst at the fund: 

" XXX will be assessing the potential acquisition of a 260,000 square foot logistics facility in Rugby, UK on a leveraged basis. Please use the information below to construct a 10 YR cash flow model and the following outputs:

  • IRR – based on 5 YR hold

  • Equity multiple – based on 5 YR hold

  • Stabilized Cash on Cash return

  • Debt Amortization Schedule – Make reasonable assumptions for the debt

    terms

  • Sensitivity tables (time permitting)"

If anyone has a few minutes I would love to send the pdf of this case, I just have 2-3 questions regarding the expectations! 

Cheers

Nov 26, 2020 - 6:07am

Don't don't don't overcomplicate the model. If using names is your usual style then fine, go for it, but you aren't going to impress anyone or get extra points for knowing how to alt-m-n.

  • Investment Analyst in PE - Other
Nov 26, 2020 - 5:19pm

Please for the love of god NEVER used named cells it's a horrible practice

  • Works at Other
Nov 28, 2020 - 12:44pm

Why's that?

Nov 26, 2020 - 7:47am

BMCM

I don't have any usual style (junior from DCM trying to transfer) I just want to secure a role, not impress anyone. But thanks!

Great, then attempt it yourself.

Don't you think it's unfair on the next person that you're sending the Case Study to someone to provide "guidance" (I.e. hand-hold you)?

Try to get this job on your own merits. Asking questions is fine, so long as general guidance ... but not asking to send them the case and tell you what to do. Not cool, bhruv.

Nov 26, 2020 - 7:56am

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