Prospective private equity candidates must be ready for the process early in their investment banking analyst programs in order to be successful in landing a private equity job. That said, recruiting for some other PE jobs will take place year-round.
The private equity interview process is challenging from start to finish. Most firms will interview a candidate over three to four rounds, but there are cases where it can be as many as ten rounds. It all depends on the firm, the number of people they want you to meet and the testing involved.
In some instances, you may come across SHL type tests testing your verbalnumerical or logic skills. However, all candidates should be prepared for general CV overview interviews, as well as the case study and LBO modeling round.
The majority of mid-market and large cap buyout funds will test candidates on their modeling skills.
Smaller cap or growth equity funds are less likely to test these skills, but may have a business case study where you present on a private investment.
All firms will want to test your commerciality and business sense. Ultimately, as an entry-level candidate you need to prove that you can make the transition from the sell-side to the buy-side and think like an investor.
The key to doing well in any interview is preparation. Do your homework on the firm, the professionals and the portfolio. These can range from asking about the amount of capital available to invest, to the number of deals the firm screens at any one time, to asking more specifically about a recent investment the firm made.
There are some extremely practical things you can do throughout the interview process to guarantee that you present yourself to best effect. The most basic and important are: We have listed examples below for you to think about. This is not an exhaustive list, but it should give you a sense of what to expect: IRR, debt equity ratio, price, earnings multiple etc.
Practice walking through your CV from university onwards in a structured minute overview. Tell me about a deal on your CV: If you are from investment banking you should definitely expect this question. Pick a deal that would be most relevant for a private equity investor either in industry or type of transaction.
Why do you want a career in Private Equity? Tailor your answer to your experience, skills and relevant interests, as demonstrated on your CV.
Why are you interested in our firm? Tailor your answer to the firm you are interviewing with and be prepared to go into financial detail on why you would invest in that company.Welcome to the Official Private Equity Interview Guide.
Do you have a private equity, growth equity, or venture capital interview coming up soon and aren’t sure what to expect or how best to prepare for it? I would compare a case study in private equity interviews to technical questions in investment banking interviews: doing a poor job can kill your chances, but being a superstar won’t necessarily help you.
Case studies are more of a way to weed out people than anything else. An asteroid is going to hit the earth and destroy % of it. You have several options: create a missile to destroy it (blowing it into several particles which will still impact the earth but destroy only 50%), or create a missile to push it out of the way (this only has a 50% chance of working though).
Today, we’re going to (finally) wrap up that Dell LBO case study that began months ago. But more importantly, I’m also going to give you a private equity case study interview presentation template you can copy, paste, and re-use. You’re also going to learn why you cannot believe much of what.
Case Interview Question # Our client Silver Lake Partners is an American private equity firm focused on leveraged buyout and growth capital investments in technology, technology-enabled and related industries. Notable technology companies among its investment holdings are Dell, Alibaba, Go.
Case Interview Question # Our client Blum Capital Partners is an American private equity firm focused on leveraged buyout, growth capital and PIPE (private investment in public equity) investments in small cap and middle-market companies across a range of industries.