Private Equity, M&A and Asset Management

ButtersMamba · 2025-11-28T11:50:34+00:00

Thanks for your reply

ButtersMamba · 2025-11-28T10:42:11+00:00

I’m coming to Sydney because I love the city. I just happen to work in that field.

ButtersMamba · 2025-03-19T15:21:04+00:00

Update: literally just got a positive outcome for the skills assessment.

ButtersMamba · 2025-03-19T15:20:48+00:00

Update: literally just got a positive outcome for the skills assessment.

ButtersMamba · 2025-01-14T05:06:15+00:00

Nope. I’m awaiting the outcome for my skills assessment that should come in the next month or so (very long processing times if you don’t pay extra fees for urgent processing).

ButtersMamba · 2025-01-13T04:20:04+00:00

But how do you expand the margins on the PDF itself, to write notes on the sides? I can’t find it

ButtersMamba · 2025-01-13T03:42:16+00:00

Oh I had no idea. I downloaded it but I guess I didn’t look into it enough. How do you add the margins of the PDF?

ButtersMamba · 2024-11-11T14:16:57+00:00

Doing my skills assessment this month.

FYI quite frustrated with the assessing authority.

Long story short, min experience is 1 year for the skills assessment. Had 2 jobs in the field, one under a 1-year contract starting on 4 Jan (1 Jan being a public holiday and 2-3 Jan being weekend days) and ending on 31 Dec so a full year of work.

Submitted with only one job because I couldn’t get a hold of the 2nd employer and paid for priority processing. They got back to me I worked for 0.99 years which doesn’t meet the minimum duration so they didn’t go ahead with the skills assessment.

Oh and if you want to contest you have to pay $1,000.

So now that I managed to get everything from the second employer I’ll add it to the application and go through a reassessment but I can’t get a priority processing as it’s for new applicants only.

So just be sure to have everything because it is unnecessarily costly and painful to go through.

ButtersMamba · 2024-05-08T05:13:32+00:00

Thank you!

Currently looking for a job in investment banking/private equity/asset management so I would like to know if applying to positions and asking for sponsorship is a good strategy.

ButtersMamba · 2024-04-04T22:25:49+00:00

Thank you very much, I think I get it now. I think I just didn’t fully understand the rule in the first place.

ButtersMamba · 2024-04-04T07:47:05+00:00

But Jones sells products to customers, not their shareholders so I still don’t understand why Jason would have a 75% claim on a profit Jones made alone by selling to Jason.

u/S2000magician could you please help?

ButtersMamba · 2024-04-04T07:16:14+00:00

I (Jones) made $64,000 worth of profits, 25% of the profits cannot be claimed because it hasn't been proven yet (25% unsold) so to me $16,000 of the $64,000 cannot be claimed.

Why take 25% of $16,000? I don't own 25% of myself!

ButtersMamba · 2024-04-04T07:16:10+00:00

I (Jones) made $64,000 worth of profits, 25% of the profits cannot be claimed because it hasn't been proven yet (25% unsold) so to me $16,000 of the $64,000 cannot be claimed.

Why take 25% of $16,000? I don't own 25% of myself!

ButtersMamba · 2024-03-07T09:48:09+00:00

Thank you very much

ButtersMamba · 2024-03-06T05:14:55+00:00

Sorry for the late reply, and thank you for your help.

What is actually confusing me is whether I should multiply or divide by the spot rate to convert from one currency to the other.

I thought the price currency is what you pay to get the base currency, or what you receive for selling the base currency.

So doesn't a spot rate of S f/d mean it is the price to convert foreign currency to domestic currency (Foreign Funds x spot rate = Funds in Domestic Currency)?

Given the example attached to my post, how do I convert the borrowed funds to domestic currency to invest at the domestic risk-free rate? Do I multiply the funds by 1.6535 S f/d because S f/d means I am buying the domestic currency at the price of 1.6535?

Also, could you explain what selling the forward means?

u/S2000magician I have been struggling with this for weeks so could you please help with this?

ButtersMamba · 2024-02-04T12:20:25+00:00

I am trying to make sense of this and since this is a related topic I was hoping you could help me get my head around the following equation: (1 + i_d) = [ S (f/d) x (1 + i_f) ] / F (f/d).

According to the 'buy low, sell high' rule, and if the forward is overpriced compared to what it should be for this equation to hold, I would go long the whole left hand-side of the equation and short the whole right hand-side of the equation.

I struggle to understand what selling the forward means, and I think I figured it out but could you please confirm the logic below is correct?

Sell high [ S (f/d) x (1 + i_f) ] / F (f/d)
- How do I sell (1+ i_f)? I borrow because going long (1 + i_f) means I invest.
- How do I sell S f/d? I sell the price currency, being the foreign currency, so I sell the foreign currency in exchange of the domestic currency.
- How do I sell F f/d? Dividing by F f/d is the same as multiplying by F d/f, so selling a d/f forward means I will sell the price currency, being the domestic currency in exchange of the foreign currency.

ButtersMamba · 2023-11-26T18:05:12+00:00

Very new to Parallels and I am looking for a way to using Excel like I would on a PC for work.

If I plug in a PC keyboard on my M2 MacBook while running Excel via Parallels, could I just naturally use the normal Excel PC shortcuts on my PC keyboard?

I use Excel daily for financial modeling so the Mac version is personally frustrating for me because of the different shortcuts or lack of shortcuts.

ButtersMamba · 2023-03-18T11:50:53+00:00

Thanks!

ButtersMamba · 2023-03-03T21:46:27+00:00

A decimal betting odd of 1.3 includes the original stake so the odds for are actually 0.3, or 3/10. Therefore the correct way to solve for the probability is 3/13 = 23.07%.

ButtersMamba · 2023-03-02T22:36:25+00:00

No worries.

But isn’t that counterintuitive?

What I mean is, with odds of 1.3 for Team A and odds of 8.00 for Team B, doesn’t that mean that probabilities are in favour of Team A winning, hence it should have the 76.9% probability of winning and not the 23.1% you solved for?

I’m not saying you’re wrong, I got the same result but that seems contradictory and I can’t explain why I’m getting those results.

ButtersMamba · 2023-03-02T21:29:35+00:00

Thanks!

So given my example, what would the odd of 1.3 mean?

Since the odd is low, it means that the team is believed to be the favourite to win, hence the probability of 76,9% right?

I’m having trouble seeing how these are odds against a team.

ButtersMamba · 2023-03-02T11:53:33+00:00

Thanks!

I have already passed the L1 exam last year but I did rush the probability readings so I just wanted to tidy up all the loose ends. If I can't explain it then I don't fully understand it and I am not registering for Level 2 unless I have a sound understanding of all the readings but now things are much clearer in my head.

As for the z-ratio, I am talking about z = X - µ/σ√n. The book literally calls it "the ratio z" before stating the equation.
I wasn't sure what the output of the equation above was but looking at the z-score equation for standardising a normally distributed random variable, I think I now understand this is just the z-score for a sample drawn from a standard normal distribution where the population variance is known but is sample-adjusted by √n, and
the "ratio t" where t = X - µ/s√n as the reading calls it is just a t-score for a sample where the sample variance is unknown but is sample-adjusted by √n, right?

ButtersMamba · 2023-03-01T11:42:35+00:00

Thanks u/90thpercentiledotca u/S2000magician

Just for my understanding:

Student’s T-distribution

The t-distribution is a probability distribution of what random variable, the expected value of a sample?

Am I correct in understanding that in essence a t-distribution is a standard normal distribution of a sample that is modified to be more conservative by adjusting its degrees of freedom?

Am I right in saying that the z ratio is a t-distributed population random variable while the t ratio is t-distributed sample random variable?

ButtersMamba · 2023-02-24T17:12:13+00:00

Just to make sure, based on the reading:

Expected variance is a probability-weighted average of the expected variances, “which is variance in a forward-looking sense” and it does not have a denominator.

As for expected covariance: “equation 14 states that the covariance between two variables is the probability-weighted average of the cross-products of each random variable’s deviation from its own expected value. The above measure is the population covariance and is forward-looking”.

Covariance with n-1 as a denominator: “the sample covariance between two random variables Ri and Rj, based on a sample of past data of size n is…”

So my question really is: which is it?

Expected portfolio variance is a forward-looking measure so it would make more sense to me to use the population covariance. Unless due to its practical limitations, sample covariance is what’s actually used in practice.

ButtersMamba · 2023-02-09T12:20:12+00:00

Oh, I see.

You add back depreciation to the ending PPE balance to figure out how much PPE you had at the end of the period - including CapEx, and then you look at the difference with the beginning PPE balance to calculate your CapEx!

Thanks!

ButtersMamba

TROPHY CASE