BX Credit - Technical/Case Assessment

What role, and level? Presume associate?

From what I understand, the technicals test is different based on which division of GSO (BX Credit). e.g. Origination, LCS etc

bump

I'm sure someone's interviewed with a BXC team? any color is greatly appreciated

need input ASAP.

In a similar situation. For the model, what output are they looking for? Understand it will be different from a LBO model (won't focus on IRR/MOIC). Should I just project out net leverage and coverage ratios?

I interviewed with a large credit shop (across cap stack) in London (generalist credit role, not a specific sub strategy). Was your classic PE LBO modeling test, incl. IRR and MOIC for Sponsor + returns for debt investors (buying debt at entry and holding until maturity + flexing for different purchase prices and entry dates if you were to acquire in secondary market). 

They like to test your commercial understanding so I would worry less about every tiny mechanical detail (don't overcomplicate!) and prep more for how to efficiently incl. 1-2 operating scenarios for key model drivers and generally being quick in cranking out a basic model which you can then adapt to the specific requirements (time is usually the biggest constraint). 

Hi guys does anyone have a good private credit / SS case study to share? DM me please, happy to trade materials

Interviewed for an internship at BX Credit in Europe and here is a summary of the interview process: 

• Format: 3 rounds - Rounds 1 & 2: 2x30mins each, Round 3: 2x45 mins and 1x30 mins with HR. Each interview is with one person. 
• Round 1: Questions are mainly linked to identifying risks/mitigants on a company of your choice in addition to why PC / why BX. 
• Round 2: A few technicals such as how does an increase in WC affect the 3 financial statements, followed by 3 paper LBOs. 1st paper LBO: how much equity does a sponsor need to inject at entry to have a 2x MOIC? Data given: exit multiple = 10x, debt = 400, investment period = 5y, EBITDA at entry = 80 (increases by 5 each year), i = e+6%, taxes = 30%, WC = increases by 5 each year. 2nd paper LBO: What D/E ratio does a sponsor need to put into a deal to have a 2x MOIC (don't have exact data but is a plain vanilla example with only twist being a cash conversion ratio of 50%). 3rd paper LBO: calculate the IRR on a deal. 
• Round 3: 1st interview is only accounting questions (ie. which industries have a negative WC). 2nd interview has another paper LBO where the objective is to find if a company hits its covenant. Data given: covenant = 14.5x, i = e+4.5%, debt = 200, revenue at y1 = 200 (+10% in y2), EBITDA margin = 22.5%, capex = 30, WC = -15 each year, 0.5x dividend recap operation in y2. In y3, crisis occurs and revenue = 100, EBITDA = 15, WC = rises by 10, capex = -5. Correct answer is that company just about hits the covenant in y3.