How hard to study for PE interviews?
I'm approaching a year in to my M&A IB analyst role- I've recently started more seriously recruiting for buyside (growth) roles; I made it to the final round for my first process, but there wasn't a very deep modeling test or anything of that nature (they don't do LBOs).
I've studied PE prep materials in the background - standard modeling course that shall not be mentioned on this website up through level 5, and know how to speak intelligently to my deal experience at a high level (candidly haven't dug super deep in terms of being able to articulate margin profiles, complexion of various revenue streams, specifics of the vertical market focus, etc).
How deep do you need to go? A friend shared his prep from a year ago when he landed his offer and he had lots of materials around the technicals he got, deals he worked on down to the specifics, etc. It's just tough to find the time to do that in this job, but willing to if that is what it takes to get to the offer stage. My focus so far was just kind of like IB prep - standard technicals with added ability to know how to work through an excel and paper LBO.
Based on the most helpful WSO content, here's what you need to know about preparing for PE interviews:
Depth of Preparation:
Study Materials:
Interview Preparation:
Networking:
Time Management:
Personality and Fit:
In summary, while the depth of preparation can vary, being thorough in both technical skills and deal experience is essential. Utilize available resources, engage in mock interviews, and build strong networks to enhance your chances of success.
Sources: Basic Questions About PE Recruiting Answered, https://www.wallstreetoasis.com/forum/private-equity/on-cycle-recruiting-2018-what-to-expect?customgpt=1, Q&A: Career start and progression across IBD // Restructuring // PE special sits, Private Equity Interview Questions - 13 Topics to Know, PE Recruiting Guide
bump, would be incredibly helpful if someone could provide insight into how they prepared for the off-cycle process. Were you studying for an hour after work each day, etc. Any outline/guidance on how to stay interview ready while working is greatly appreciated!
dm me re case studies
Dm me
I can't we're both anon
Bro you are anonymous just post it
I did a lot of the prep work early on and got to the point where if I had an interview coming up, I only needed to do an hour or two of refreshing.
It’s very person-dependent, as I felt I am generally good out thinking through things on the spot and articulating my thoughts confidently.
So for me - my real prep was (1) Paper / Excel LBOs (2) Deal talk (3) Qualitative case studies / developing an investor framework (4) Accounting fundamentals and banking technicals
Early on I struggled the most with particularly 3 but also 2. But then I got thrown into the fire on some deals and developed ability to talk about the deal I was on, but also apply those learnings from the deal & what investors dug into towards the case studies.
1 & 4 are the easiest to prepare for but will need refreshing every once in a while, 2 and 3 pretty much stick once you get your framework down or have a similar experience to myself.
Lastly, always need to do a bunch of research on the firm beforehand (portco’s, their “edge”, mission statement, history, etc.). Demonstrating interest and backing it up with your knowledge helps immensely.
Obviously behaviorals are very important too, but I never prepared for these.
Summarizing my above thoughts, I did practice LBOs basically every opportunity I had every day until I was very comfortable (realistically probably 10-15 reps is all you need to get to that point). Technicals I had finance and accounting background, so just sprinkled these in occasionally. Deal talk and case studies honestly evolved over time as I had more interviews and practiced with other analysts. But talking through these out loud is most helpful.
Last thought - I’ve had multiple 1 hour interviews in the same super day that were solely deal talk, asking for details down to EBITDA adjustments, unit economics, de novo costs, % of revenue for each line item and how they change over time, returns analysis, as well as high level thoughts on growth strategy, risks and mitigants, etc… So I had to be able to speak to this level of detail for separate deals.
They can and generally will dig deep.
Curious where you found the best source of paper LBOs from? Went through all 7 from p.f already but trying to get my hands on more that are useful/similar to what they actually ask
Wow -- thanks for sharing your experience. Can you PM so I can ask some follow-up questions on your prep.
Curious how you found the mental horsepower to memorize these stats for 4-5 deals amongst 100 hr work weeks. I built these models and know them well, but there is a level of brute force memorization for a 10+ cost driver model and doing this for multiple deals. Any advice?
Thanks. for sharing -- I have some follow up questions. Can you send me a DM? Thanks.
any advice on how to develop investor framework? books, resources to recommend?
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