Leveraged Breakdowns

Passion sets you apart from your competition   The daily responsibility of a career in real estate private equity is to think and hypothesize. We build models to address hundreds of what-if scenarios, trying to figure out the most likely path forward. We ask lots of questions and try to see each investment opportunity from as many angles as possible. So naturally, nearly all repe interview questions are simply looking to test your ability to transpose and reconfigure investment problems in real time. This is where passion comes in. We only want to hire people who are actually passionate about working through these problems every day. If you aren’t passionate, the work will feel exhausting and tedious. If you are passionate, then your curiosity and drive will propel you to succeed as an investor. So how do investors judge whether you’re truly passionate in an interview setting? Knowledge demonstrates passion To demonstrate passion, you need to prove competency with...

Enjoying our content? Consider supporting us with a Leveraged Breakdowns membership , which grants access to our best-in-class courseload, designed and curated by our team of Manhattan megafund real estate private equity investors. How do REPE investors invest in companies? The first post of this series on the REPE M&A investment process focused on: (1) defining our goal (make good investments), (2) defining the type of investment (long only), (3) defined NAV (essentially it’s our view on a company’s equity value), and (4) briefly touched on market efficiency (and how we believe inefficiency exists, resulting in potential disconnects between a company’s share price and its intrinsic NAV). This post will focus on an important concept for any career in real estate private equity: the capital stack. Namely, how does the capital stack define ownership? What does seniority in the capital stack represent? Who is the most secured member of the capital stack, and why do they r...