Contents
High-Level Technical Questions
1. “How do you evaluate fintech companies and digital payment platforms?”
Comprehensive Analysis:
Valuation Metrics:
- Key Performance Indicators
Transaction Metrics:
- Gross Merchandise Value (GMV)
- Total Payment Volume (TPV)
- Take rate
- Transaction frequency
User Metrics:
- Monthly Active Users (MAU)
- Customer Acquisition Cost (CAC)
- Lifetime Value (LTV)
- Net Promoter Score (NPS)
- Financial Analysis
Revenue Components:
- Transaction revenue
- Subscription revenue
- Interest income
- Other services
Cost Structure:
- Processing costs
- Network fees
- Technology infrastructure
- Compliance costs
- Platform Economics
Network Effects:
- User growth dynamics
- Cross-side benefits
- Platform stickiness
- Competitive moats
Scale Benefits:
- Fixed cost leverage
- Data advantages
- Risk management
- Product development
2. “Walk me through structured finance and securitization analysis.”
Detailed Framework:
Structure Analysis:
- Asset Pool Characteristics
Key Metrics:
- Credit quality
- Seasoning
- Geographic distribution
- Asset yield
Performance Metrics:
- Default rates
- Recovery rates
- Prepayment speeds
- Delinquency trends
- Structural Features
Credit Enhancement:
- Overcollateralization
- Excess spread
- Reserve accounts
- Guarantees
Payment Structure:
- Waterfall mechanics
- Trigger events
- Principal allocation
- Interest distribution
- Risk Analysis
Credit Risk:
- Obligor quality
- Industry concentration
- Vintage analysis
- Stress testing
Structural Risk:
- Payment priority
- Servicing quality
- Legal framework
- Counterparty exposure
3. “Explain complex hedging strategies in M&A transactions.”
Comprehensive Response:
Hedging Approaches:
- Deal Risk Hedging
Methods:
- Collar strategies
- Forward contracts
- Option structures
- Contingent value rights
Considerations:
- Deal timing
- Market volatility
- Correlation risk
- Cost effectiveness
- Currency Exposure
Hedging Tools:
- FX forwards
- Cross-currency swaps
- Option strategies
- Natural hedges
Implementation:
- Timing considerations
- Cost analysis
- Accounting impact
- Regulatory constraints
- Interest Rate Risk
Strategies:
- Interest rate swaps
- Forward rate agreements
- Cap/floor structures
- Swaptions
Analysis:
- Duration matching
- Cost of carry
- Basis risk
- Documentation requirements
4. “How do you analyze venture capital and growth equity investments?”
Detailed Analysis:
Investment Framework:
- Market Assessment
Size Analysis:
- Total addressable market
- Serviceable market
- Target market share
- Growth potential
Competitive Analysis:
- Market structure
- Entry barriers
- Network effects
- First-mover advantages
- Company Analysis
Product Evaluation:
- Technology differentiation
- Product-market fit
- Development roadmap
- Scalability potential
Team Assessment:
- Management experience
- Technical capabilities
- Track record
- Culture fit
- Financial Metrics
Growth Metrics:
- Revenue growth
- User acquisition
- Engagement metrics
- Monetization potential
Unit Economics:
- Gross margins
- CAC payback
- LTV/CAC ratio
- Burn rate
5. “Walk through regulatory capital analysis for financial institutions.”
Comprehensive Framework:
Capital Requirements:
- Basel Framework
Core Components:
- Common Equity Tier 1
- Additional Tier 1
- Tier 2 Capital
- Total Capital ratio
Risk Weightings:
- Credit risk
- Market risk
- Operational risk
- Counterparty risk
- Stress Testing
Scenarios:
- Base case
- Adverse scenario
- Severe adverse
- Idiosyncratic events
Analysis Areas:
- Credit losses
- Trading losses
- Revenue impact
- Capital impact
- Capital Planning
Management Tools:
- Capital allocation
- Risk limits
- Buffer management
- Dividend policy
Strategic Considerations:
- Growth plans
- Acquisition strategy
- Asset mix
- Business model
6. “Explain different types of real estate investment analysis.”
Detailed Response:
Analysis Components:
- Property Valuation
Methods:
- Income approach
- Sales comparison
- Cost approach
- Residual method
Key Metrics:
- Cap rate
- NOI
- Price per square foot
- Replacement cost
- Investment Analysis
Return Metrics:
- Cash-on-cash return
- IRR
- Equity multiple
- AFFO yield
Risk Assessment:
- Location quality
- Tenant quality
- Market dynamics
- Capital requirements
- Financing Structure
Debt Analysis:
- LTV ratio
- DSCR
- Debt yield
- Amortization schedule
Equity Structure:
- Promote structure
- Waterfall provisions
- Preferred return
- Catch-up provisions
7. “How do you evaluate infrastructure investments?”
Comprehensive Analysis:
Evaluation Framework:
- Asset Characteristics
Physical Attributes:
- Asset condition
- Useful life
- Maintenance requirements
- Expansion potential
Revenue Structure:
- Contracted revenue
- Volume risk
- Price mechanisms
- Government support
- Financial Analysis
Key Metrics:
- Project IRR
- Equity IRR
- DSCR
- Yield metrics
Cost Structure:
- Operating costs
- Lifecycle costs
- Capital expenditure
- Regulatory costs
- Risk Assessment
Categories:
- Construction risk
- Operation risk
- Demand risk
- Political risk
Mitigation:
- Contractual protection
- Insurance
- Government support
- Technical solutions
8. “Walk through complex restructuring scenarios involving multiple jurisdictions.”
Detailed Framework:
Key Considerations:
- Legal Framework
Jurisdictional Analysis:
- Creditor rights
- Priority rules
- Court procedures
- Recognition issues
Coordination:
- Main proceedings
- Ancillary proceedings
- Protocols
- Information sharing
- Stakeholder Management
Creditor Groups:
- Senior secured
- Junior secured
- Unsecured
- Government claims
Cross-border Issues:
- Different priorities
- Local requirements
- Cultural factors
- Language barriers
- Implementation Strategy
Process Management:
- Timeline coordination
- Documentation
- Court approvals
- Local requirements
Value Preservation:
- Operating stability
- Asset protection
- Customer relationships
- Employee retention
