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Private Equity
Private equity interview questions
Private equity interviews build on banking fundamentals but place more emphasis on investment judgement. Candidates need to explain an LBO, identify downside risk, assess a market and defend a concise investment view.
How to prepare
- 1Build and explain an LBO from sources and uses through returns and sensitivities.
- 2Separate a strong business from a strong investment by naming valuation, leverage and execution risks.
- 3Practise turning a diligence finding into a clear investment-committee recommendation.
Questions to practise
82 questionsFrequently asked questions
What is tested in a private equity interview?
LBO mechanics, investment judgement, commercial due diligence, downside analysis and the ability to communicate an investment recommendation clearly.
Do private equity interviews require an LBO model?
Many processes test LBO reasoning or modelling. You should be able to explain how operational improvement, leverage, entry valuation and exit valuation affect returns.