Blackstone Center of Excellence Interview Questions, Process, and Tips

Q1. Journal Entries and their effects on Cash Flow Statement. Difference between Hedge Fund and Mutual Fund. Types of Derivative Contact Put Option And Call Option and when these will be exercised. Example of ...read more
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Questions related to finance and management trainee position.
• Journal entries affect cash flow statement by either increasing or decreasing cash flow from operating, investing, or financing activities.

• Hedge funds are private investment funds that use high-risk strategies to generate high returns, while mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of st...read more
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Q2. What is Blackstone? What is Blackstone's Revenue Model?
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Blackstone is a global investment firm that specializes in private equity, real estate, credit, and hedge fund investment strategies.
• Blackstone's revenue model is based on earning management and performance fees from the funds it manages.

• The firm charges a management fee of 1-2% of assets under management and a performance fee of 20% of profits above a certain threshold.

• Blackstone also earns revenue from its real estat...read more
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Q3. What is Alternate Asset Management
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Alternate Asset Management involves investing in non-traditional assets such as real estate, private equity, and hedge funds.
• It is a type of investment strategy that focuses on non-traditional assets

• Examples of alternate assets include real estate, private equity, and hedge funds

• Investors use this strategy to diversify their portfolio and potentially earn higher returns

• Alternate Asset Management is typically used by in...read more
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Q4. What are close ended and open ended mutual funds
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Close ended mutual funds have a fixed number of shares while open ended mutual funds can issue and redeem shares.
• Close ended funds are traded on stock exchanges and their prices are determined by supply and demand

• Open ended funds are bought and sold directly from the fund company at the net asset value (NAV)

• Close ended funds have a limited number of shares and can trade at a premium or discount to their NAV

• Open ended f...read more
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Q5. What are Mutual Funds
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Mutual funds are investment vehicles that pool money from multiple investors to invest in stocks, bonds, and other securities.
• Mutual funds are managed by professional fund managers

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying securities

• Mutual funds offer diversification and convenience for investors

• There are different types of mutual funds, ...read more
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Q6. What is NPV and why it is calculated
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NPV stands for Net Present Value. It is calculated to determine the present value of future cash flows.
• NPV is used to evaluate the profitability of an investment or project.

• It takes into account the time value of money and discounts future cash flows to their present value.

• If the NPV is positive, the investment is considered profitable.

• If the NPV is negative, the investment is considered unprofitable.

• NPV is calculated ...read more
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Q1. What is waterfall?
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Waterfall is a traditional project management methodology where tasks are completed sequentially in a linear fashion.
• Tasks are completed in a step-by-step manner, with each phase being completed before moving on to the next.

• There is minimal flexibility for changes once a phase has been completed.

• Commonly used in construction and manufacturing projects.

• Examples include building a house or manufacturing a car.
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Q2. Excel functions
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Q1. Securitisation analysis
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Q2. Credit ratings Analysis
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Securitisation analysis asset backed securities

Q1. Explain dcf, valuation approach, ebidta, turnover cost, amortization
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DCF, valuation approach, EBITDA, turnover cost, and amortization are financial terms used in business valuation and accounting.
• DCF (Discounted Cash Flow) is a valuation method used to estimate the value of an investment based on its future cash flows.

• Valuation approach refers to the method used to determine the value of a company or asset, such as market approach, income approach, or asset-based approach.

• EBITDA (Earnin...read more
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Q2. Why do you want to switch
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