BX Credit - Technical/Case Assessment
Has anyone interviewed with BX Credit?
How was your interview process, as in amount of rounds and many people you interviewed with? I was told there's a case study or some sort of technical assessment. Does anyone know what that comprises of? Is there a general one, or does it vary from fund to fund or group within Credit (which is ridiculously huge now) as I'd assume? What should I expect on it?
Thanks for any insight into this!
What role, and level? Presume associate?
Associate level. I can’t disclose the exact role now, but in one of the following areas: leveraged loans, structured credit, distressed credit, HY.
Any chance you can PM me?
From what I understand, the technicals test is different based on which division of GSO (BX Credit). e.g. Origination, LCS etc
Do you have color on any group's technical assessment in Credit? Liquid Credit Strategies, Originations, Performing Credit, BIS.
LCS, Originations, Performing Credit, BIS
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).
I guess my question would be why is a credit investor caring about IRR/MOIC if they aren't investing in the equity? Also, if the credit shop only invests in senior secured debt, how would that be different?
Honestly, just be prepared to include it - should be a very quick high level task anyway, so won't even take you 5min to do.
I don't think it matters much that you are interviewing for a senior debt only shop other than your position in the payout waterfall when calculating returns. They will still be focused on assessing whether you are capable of building a thoughtful 3 statement LBO model with potentially a downside case.
Lots of reasons why you'd care about the IRR/MOIC as a credit investor. First, you should always prepare the return analysis for your credit with IRR/MOIC. It is worthwhile to figure out the return profile for the sponsor to understand how they're likely looking at the investment - could be playing an operational turnaround thesis, multiples expansion thesis, or maybe it looks like a div recap would be coming down the pipe in a year or two, which you definitely care about as a credit investor. You can also deduce whether the sponsor is being overly aggressive with their underwriting if their own return profile doesn't really match with what you think the business can truly do. Depending on the sponsor, its good to also understand which fund their investing out of and remaining fund life, as well as the firm's fundraising efforts, etc.
Hi guys does anyone have a good private credit / SS case study to share? DM me please, happy to trade materials
Bumping. Interested as well.
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