Bain Capital Real Estate Interview Prep
questions with complete solutions
KKR Facts correct answer: -$14B AUM
-Offices in 11 cities and 8 countries
-90 investment/AM professionals
-Provider of both equity and debt capital
-Formed dedicated RE platform in 2011
-$300M own capital from balance sheet, 2013 KKR RE Partners Americas Fund 1
-KKR RE Partners Europe in 2016
-2017 KKR RE Partners Americas Fund II for $2B including $261 million from KKR's balance sheet and employees
-Can use own capital to invest in flexible strategies and to align interests with investors
-Use firms ecosystem to execute RE opps at asset level, private platform level, and providing capital to public platforms
-RE Platform can provide capital across cap structure through partner with equity, pref equity, lender
-RE identified as asset class with most significant scaling potential
Daniel joined KKR on RE equity team in 2019 and oversees Northeast investments and life science investments for US RE funds
Questions correct answer: 1) As CAP rates have continued to compress across many metros, despite COVID impacts, has KKR considered investing in below market-rate units or opportunity zones where you can receive tax credits and higher risk-adjusted returns either with REPA II or III?
2) In the REPA III fund, where is KKR strategically looking to invest? With the urban to suburban outflow trends continuing, is KKR looking to invest in cheap assets closer to the urban environment or capitalize on the out-migration to the suburbs?
3) Where do you see the greatest opportunity for capitalization on fragmented markets where you
can implement a systematic approach and scale, both in terms of location within the Northeast and asset class? 4) When evaluating individual assets, how often are you leveraging KKR Capstone to assess operational improvements at the property? Do you typically utilize Capstone or your asset management team for on-the-ground insights?
5) What do you see as the number one asset of KKR's global platform? Do you often leverage the various business lines within KKR?
5) What personal qualities or abilities are important to be successful in this position at KKR? 2) How do you see the consulting-based approach to PE investing setting Bain Capital apart from
other institutional investors?
3) What do you see as the number one asset of Bain Capital's global platform? Do you see the Real Estate group leveraging the various business lines within Bain Capital?
4) How much exposure does RE Fund 1 plan to allocate to international markets?
5) What personal qualities or abilities are important to be successful in this job
Bain Capital Facts correct answer: -Established in 2018 as a spinoff from Harvard Management Company (HMC)
-Raised $1.5B Real Estate Fund 1 in 2019 (1/2 deployed), with a value-add strategy mandate with bets on long-term secular trends
-November BCRE formed a JV with Magnolia Capital for $900M investments in Sunbelt value-
add garden product, 1975-2000 vintage for middle-income housing
-Harvard's direct property portfolio valued at $3.4B at time of spinoff
-Major Sectors: Life Sciences/Healthcare, Consumer/Retail, Office, Industrials, Multifamily
-Assets range from $10-25M with flexibility for investment in China, Canada, and UK
REIT Work correct answer: US REITS:
Essex
AIMCO
Camden
ACC
Bluerock
Canada REITS:
CAPRENT
Boardwalk
Minto
Greystar Core Business
Trading at discount to NAV
Geographic exposure
Pursuit Risk
Key risks of leverage, geographic concentration, development exposure
Why Bain Capital? correct answer: 1) I want to work hard and at a place where I can see extensive deal flow and gain exposure across asset classes, as opposed to strictly multifamily
questions with complete solutions
KKR Facts correct answer: -$14B AUM
-Offices in 11 cities and 8 countries
-90 investment/AM professionals
-Provider of both equity and debt capital
-Formed dedicated RE platform in 2011
-$300M own capital from balance sheet, 2013 KKR RE Partners Americas Fund 1
-KKR RE Partners Europe in 2016
-2017 KKR RE Partners Americas Fund II for $2B including $261 million from KKR's balance sheet and employees
-Can use own capital to invest in flexible strategies and to align interests with investors
-Use firms ecosystem to execute RE opps at asset level, private platform level, and providing capital to public platforms
-RE Platform can provide capital across cap structure through partner with equity, pref equity, lender
-RE identified as asset class with most significant scaling potential
Daniel joined KKR on RE equity team in 2019 and oversees Northeast investments and life science investments for US RE funds
Questions correct answer: 1) As CAP rates have continued to compress across many metros, despite COVID impacts, has KKR considered investing in below market-rate units or opportunity zones where you can receive tax credits and higher risk-adjusted returns either with REPA II or III?
2) In the REPA III fund, where is KKR strategically looking to invest? With the urban to suburban outflow trends continuing, is KKR looking to invest in cheap assets closer to the urban environment or capitalize on the out-migration to the suburbs?
3) Where do you see the greatest opportunity for capitalization on fragmented markets where you
can implement a systematic approach and scale, both in terms of location within the Northeast and asset class? 4) When evaluating individual assets, how often are you leveraging KKR Capstone to assess operational improvements at the property? Do you typically utilize Capstone or your asset management team for on-the-ground insights?
5) What do you see as the number one asset of KKR's global platform? Do you often leverage the various business lines within KKR?
5) What personal qualities or abilities are important to be successful in this position at KKR? 2) How do you see the consulting-based approach to PE investing setting Bain Capital apart from
other institutional investors?
3) What do you see as the number one asset of Bain Capital's global platform? Do you see the Real Estate group leveraging the various business lines within Bain Capital?
4) How much exposure does RE Fund 1 plan to allocate to international markets?
5) What personal qualities or abilities are important to be successful in this job
Bain Capital Facts correct answer: -Established in 2018 as a spinoff from Harvard Management Company (HMC)
-Raised $1.5B Real Estate Fund 1 in 2019 (1/2 deployed), with a value-add strategy mandate with bets on long-term secular trends
-November BCRE formed a JV with Magnolia Capital for $900M investments in Sunbelt value-
add garden product, 1975-2000 vintage for middle-income housing
-Harvard's direct property portfolio valued at $3.4B at time of spinoff
-Major Sectors: Life Sciences/Healthcare, Consumer/Retail, Office, Industrials, Multifamily
-Assets range from $10-25M with flexibility for investment in China, Canada, and UK
REIT Work correct answer: US REITS:
Essex
AIMCO
Camden
ACC
Bluerock
Canada REITS:
CAPRENT
Boardwalk
Minto
Greystar Core Business
Trading at discount to NAV
Geographic exposure
Pursuit Risk
Key risks of leverage, geographic concentration, development exposure
Why Bain Capital? correct answer: 1) I want to work hard and at a place where I can see extensive deal flow and gain exposure across asset classes, as opposed to strictly multifamily
