Distressed Fund Interviews? (i.e., Oaktree)
Hi, just wondering what the interview process at a distressed fund like Oaktree is like? I'm interested in associate interviews for distressed debt or HY. What type of case studies are given? Any helpful feedback would be appreciated. Thanks.
What's your background?
I know an MD at Oaktree and he said they interview 50+ people per position (didn't opine on how many applications they get), like ex law guys, highly rate Houlihan (restructuring) and GS (IBD), languages are a must in Europe. So basically impossible positions to get.
As for OP, I assume he already has an interview or he wouldn't be asking the question.
What, so I made up some random facts about Oaktree's hiring practices? Come on kid.
My background is two years BB investment banking in the Industrials Group and two years at a buyout firm, working mostly on LBOs.
Distressed Investing Shop (Interview) (Originally Posted: 10/27/2015)
Hi guys, Currently working at a bulge bracket bank in a financing business (very niche product area), and have been shopping around. I applied to a role in the midwest a ways back and heard back recently. Small shop that focuses on capital financing for commercial and industrial companies. Very focused on distressed investing (low or no credit rating whatsoever). Made it through the initial interviews and they're flying me out in a few weeks. The interview with the Sr. MD was very conversational, and more of a back and forth (with me learning more about the business). The role seems largely focused on valuations for underlying collateral, and all of the collateral for the loans is physical. Just wanted to know what anyone thinks I should read up on, as my background is sales and trading and not banking. Thanks in advance.
If it's distressed investing the question is are you investing on the basis of cash flows (EBITDA) or against assets? In either case you will need to understand valuations both at the enterprise and asset level. Distressed valuations of companies is not the same as going concern companies for obvious reasons, so you would need to have a strong understanding of what you're valuing in from the perspective of distress. Similar for asset valuations, you will need to know market haircuts to make that you're loaning against the collateral. I'm also assuming you will work heavily on the negotiation of the loan documents, ICAs, gaurantees/indemnifications, etc as part of your associate gig so you should have a good understanding of the mechanisms of credit agreements and the familiarity with term sheets of distressed lenders.
If they have third party assets, they should have SEC filings here: http://www.adviserinfo.sec.gov/IAPD/Content/Search/iapd_Search.aspx
The part 2 brochure may have details about their investment process and risk practices
thanks - that helps. I think the big thing helping me is the fact that I'm well versed with respect to credit facilities/haircutting collateral from current role (just a clear drop in quality of collateral). It definitely seems like a departure, in a positive sense, from the way things are done at a BB.
Can anyone comment as to the typical valuation methods used by distressed lenders for physical collateral (think power plants, aircraft, etc).
Distressed/Turnaround PE interview (Originally Posted: 11/27/2012)
Can anyone please shed some light on interviewing with a distressed/turnaround PE fund? I have an interview coming up with one but am very unsure what to expect besides the usual LBO modeling etc.?
If anyone can point me in the direction of helpful material I'd appreciate that as well.
Thanks a lot!
US or Europe?
Europe, but I would assume that it doesn't make that much of a difference?
The search function works well; this has been asked 1000 times and gets asked every week
Distressed/Turnaround PE interview Help (Originally Posted: 03/06/2012)
Hello all,
I was just extended an interview at a mm distressed pe shop, and the recruiter suggested that I brush up on credit analysis (I have no 'formal' [i.e. at a bank] credit analysis training). I should also be able to make sense of a credit agreement. Can anyone here recommend materials I can use as a refresher?
If anyone here has gone through formal credit training, would you mind PMing me for a few quick questions?
Cheers,
BR
bump.
Thanks for the bump, nuts, and thanks to all who have PMed me.
So the recruiter told me that I will likely be faced with several distressed loan problems. Can anyone think of examples of distressed loan problems that I might see in an interview?
Thanks again.
BR
Distressed PE models/interviews (Originally Posted: 05/11/2012)
Hi guys
Tried posting this earlier but I think I f'd it up.
Wondering if anyone has any experience in the realm of distressed PE / distressed PE interviews. To prep I'm working up case studies on a few firms with full situation overview, cap structure, valuation, and 3-statement/LBO and now I'd like to get the next layer of complexity.
I know this varies a lot deal by deal but I'm wondering what some of the more common layers are, i.e. what are some of the more common buyout deal variations. I'm coming from a restructuring/bkruptcy background so I'm not as familiar with what goes on in PE firms.
I'm imagining in my head a scenario where the guy says "Ok, now imagine you throw a 26 pound cat into the company's SAP system and the whole damn thing melts down - walk me through the impact on each of the 3 statements."
Or some shit like that. Not really sure what to expect.
PS: Answer: All numbers go to #REF!
just pm you
Would you mind sharing with the class?
Also very interested. Really would like to see an example of the balance sheet adjustments when a company is bought below net asset value (aka no goodwill created). Does anyone have an example model with that type of purchase structure?
have not come across a model, but theoretically just like you mark assets up, you'd mark them down (closing/opening balance sheet), preferably long-term assets. remaining neg goodwill is recognized as extraordinary gain in year. I believe under international standards you'd have neg goodwill in your financials
Thanks guys - distressedd I just msg'd you back with contact info
The way it was explained to me is that a restructuring w/ impairment is just the reverse of an LBO - you delever instead of lever. As for the specific treatments of goodwill etc., that's where things get a bit fuzzy. My inclination would be to mark down the PP&E/land to fair market value (i.e. what's the implied value of said assets after taking into account the new enterprise value/debt/equity etc.). But I'm just guessing here.
Interested in learning more
interested as well
We're working on it - pm me your email addresses
Was this ever followed through? Would still be keen to know more.
This book has all you need - "Valuation for Mergers, Buyouts and Restructurings" Good reference to have.
Can you please send me everything you used to prep? Have an interview tomorrow too, same situation
Would really appreciate it!
Distressed Advisory Firm - Interview !! (Originally Posted: 09/22/2010)
Hi. I am a long time reader, first time poster and I come to you seeking some counsel. I tried doing a search but nothing on point came up.
I have an interview coming up with a distressed advisory boutique firm for a high yield/distressed analyst position and I want to be as prepared as possible. I have no experience in this field really. From what I gathered, the questions are to be more geared toward the applicant's background but the analyst position obviously entails both quantitative and qualitative work so that is of concern to me.
My undergraduate major was Econ but I have been out of school for a few years and in a different field. Thus, I am more than rusty on my basic financials.
My first question is what should I be prepared for in the upcoming interview? What financial material (if any) should I be brushing up on? What should I expect?
My second question is a little-forward looking but what can I expect as far as hours, environment, salary, etc. Any assistance is appreciated. Thanks very much.
Read "Distressed Debt Analysis" by Stephen Moyer - possibly the best distressed investing / restructuring advisory guide out there.
Agreed with the above. Great book.
Harbinger Distressed Interview (Originally Posted: 02/27/2008)
have an interview going up with harbinger distressed. its for a junior analyst position to work directly with a senior analyst. ive been working for 8 months in HY research at a top 5 BB.
was told 1 interview will be fit other will be technical and mostly about modeling.
has anyone been through an interview with them?
thanks
be similar to most distressed/value fund interviews. If its on the spot with no time to prepare, they will likley make you break down a company, possibly a stressed/distressed company. Obviously being able to understand the typical credit metrics (priority of claims, leverage differentials between securities in cap structures, asset coverage), valuation techniques (how do you value company, FCF yields, EV/EBITDA, etc) and breakdown of business and whats causing its stress will be the most important. Detailing whats driving cash flow (or lack thereof) and if it's possible to fix (is it operational problems or balance sheet-overleverage problems) will be important and understanding downside risks to any kind of investment (whether long or short recommendation). Also, if company not in bancruptcy, might have to highlight what likely outcomes from a filing are. Are you sure its going to be a distressed interview, they do all of their public side HF investing through their two funds which are labeled distress (they take a lot of large activist positions), but they obviously do a lot of distress also (just saying case study might not focus on a distress company).
distressed fund interview help (Originally Posted: 05/10/2009)
Hey guys, I will have an interview with a distress PE fund for a pre-MBA position this week. May anyone give me some suggestions on preparations, other than fit questions and the lbo model? Currently working at a small PE firm as an analyst but never touched distress deal.
I found such book to read. Not sure it will help or not.
Distress Investing: Principles and Technique (Wiley Finance) by Martin J. Whitman (Author), Fernando Diz (Author), Daniel D'Aniello (Author)
Thanks in advance.
I haven't read Whitman's book, but Moyer's has been highly rated by most who have read it.
Wish I could add more
moyers is the best out there
also read thru some of the case studies here to get a better understanding of the distressed process
http://www.distressed-debt-investing.com/
Thanks a lot, "restructure-this" and "iambateman". It's my luck to have your guys help me out.
.
Did you have the interview? How did it go? I just came across another book. Not as good as Moyer's but similar content. Try Bankruptcy Investing by Branch and Ray.
Good call iambatemam. First time I've seen that website - the guy seems legit.
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