Contents #

• High-Level Technical Questions
  • 1. “How do you evaluate fintech companies and digital payment platforms?”
  • 2. “Walk me through structured finance and securitization analysis.”
  • 3. “Explain complex hedging strategies in M&A transactions.”
  • 4. “How do you analyze venture capital and growth equity investments?”
  • 5. “Walk through regulatory capital analysis for financial institutions.”
  • 6. “Explain different types of real estate investment analysis.”
  • 7. “How do you evaluate infrastructure investments?”
  • 8. “Walk through complex restructuring scenarios involving multiple jurisdictions.”

High-Level Technical Questions #

1. “How do you evaluate fintech companies and digital payment platforms?” #

Comprehensive Analysis:

Valuation Metrics:

1. 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)

2. Financial Analysis

   Revenue Components:

   • Transaction revenue
   • Subscription revenue
   • Interest income
   • Other services

   Cost Structure:

   • Processing costs
   • Network fees
   • Technology infrastructure
   • Compliance costs

3. 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:

1. Asset Pool Characteristics

   Key Metrics:

   • Credit quality
   • Seasoning
   • Geographic distribution
   • Asset yield

   Performance Metrics:

   • Default rates
   • Recovery rates
   • Prepayment speeds
   • Delinquency trends

2. Structural Features

   Credit Enhancement:

   • Overcollateralization
   • Excess spread
   • Reserve accounts
   • Guarantees

   Payment Structure:

   • Waterfall mechanics
   • Trigger events
   • Principal allocation
   • Interest distribution

3. 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:

1. Deal Risk Hedging

   Methods:

   • Collar strategies
   • Forward contracts
   • Option structures
   • Contingent value rights

   Considerations:

   • Deal timing
   • Market volatility
   • Correlation risk
   • Cost effectiveness

2. Currency Exposure

   Hedging Tools:

   • FX forwards
   • Cross-currency swaps
   • Option strategies
   • Natural hedges

   Implementation:

   • Timing considerations
   • Cost analysis
   • Accounting impact
   • Regulatory constraints

3. 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:

1. 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

2. Company Analysis

   Product Evaluation:

   • Technology differentiation
   • Product-market fit
   • Development roadmap
   • Scalability potential

   Team Assessment:

   • Management experience
   • Technical capabilities
   • Track record
   • Culture fit

3. 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:

1. 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

2. Stress Testing

   Scenarios:

   • Base case
   • Adverse scenario
   • Severe adverse
   • Idiosyncratic events

   Analysis Areas:

   • Credit losses
   • Trading losses
   • Revenue impact
   • Capital impact

3. 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:

1. Property Valuation

   Methods:

   • Income approach
   • Sales comparison
   • Cost approach
   • Residual method

   Key Metrics:

   • Cap rate
   • NOI
   • Price per square foot
   • Replacement cost

2. Investment Analysis

   Return Metrics:

   • Cash-on-cash return
   • IRR
   • Equity multiple
   • AFFO yield

   Risk Assessment:

   • Location quality
   • Tenant quality
   • Market dynamics
   • Capital requirements

3. 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:

1. Asset Characteristics

   Physical Attributes:

   • Asset condition
   • Useful life
   • Maintenance requirements
   • Expansion potential

   Revenue Structure:

   • Contracted revenue
   • Volume risk
   • Price mechanisms
   • Government support

2. Financial Analysis

   Key Metrics:

   • Project IRR
   • Equity IRR
   • DSCR
   • Yield metrics

   Cost Structure:

   • Operating costs
   • Lifecycle costs
   • Capital expenditure
   • Regulatory costs

3. 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:

1. Legal Framework

   Jurisdictional Analysis:

   • Creditor rights
   • Priority rules
   • Court procedures
   • Recognition issues

   Coordination:

   • Main proceedings
   • Ancillary proceedings
   • Protocols
   • Information sharing

2. Stakeholder Management

   Creditor Groups:

   • Senior secured
   • Junior secured
   • Unsecured
   • Government claims

   Cross-border Issues:

   • Different priorities
   • Local requirements
   • Cultural factors
   • Language barriers

3. Implementation Strategy

   Process Management:

   • Timeline coordination
   • Documentation
   • Court approvals
   • Local requirements

   Value Preservation:

   • Operating stability
   • Asset protection
   • Customer relationships
   • Employee retention