by Brian DeChesare | 105 Comments

How to Ace Your Private Equity Interviews

Private Equity Interviews“Dear Andrew,

Thank you very much for your recent application to the Texas-Pacific Group. Your resume and glowing recommendation from your MD were both somewhat impressive. We applaud your efforts to transition from Banking into Private Equity, it is definitely the right move right now. We were considering extending you an offer, actually, but upon review of the quiz you inadvertently submitted to for the New York Post, we regret to inform you that we will be unable to offer you a position at our firm.

Please note that you did score an 87%, which is nothing to be ashamed of. It turns out to a B+ with our generous scaling, and you know what they say—at least you won’t be lonely at the fat part of the bell curve. We only take A’s though. Have you considered a position at Hellman & Friedman?”

-Only 87% Tool, The Leveraged Sellout

Ah, private equity.

The promised land.

What you slave away for as a banker: the chance to become the next Steve Schwarzman.

But unless you have an inside connection with Steve himself, you’ll have to go through a few interviews to get to paradise.

The Format of Private Equity Interviews

On the surface, they’re similar to investment banking interviews – a phone screen or initial in-person screening interview, followed by a “superday” where you meet with most of the Associates, Principals, and Partners.

But it’s more of an extended process and you often go through the interviews over several months rather than several weeks.

Plus, you’ll get tested on private equity case studies, LBO modeling, and the deals you’ve worked on as a banker.

PE firms are much smaller than banks, so they can afford to be more selective; they don’t really need you because there is less grunt work to begin with.

Private Equity Interview Questions

Private equity firms care about 3 points when they interview you:

  1. Can you make money for us?
  2. Can you save us money?
  3. Can you improve a process?

No one will hire you unless it results in more money for them – this is finance after all, not some save-the-world nonsense.

To assess these 3 points, PE firms will ask you 3 types of interview questions:

  1. “Fit” Questions – Similar to investment banking interviews.
  2. Technical Questions – Similar to banking interviews, but more advanced.
  3. Deal Experience Questions – These are the best way to prove the 3 points above – so you better know your deals inside and out.

Different firms emphasize different questions – for example, the mega-funds like KKR and Blackstone care more about obscure technical questions, while smaller PE firms (AUM < $1 Billion USD) spend more time on the “fit” side.

“Fit” Questions

You know the drill: know your “story” like the back of your hand, and have 2-3 mini-stories based on your work experience.

You use these mini-stories to answer teamwork, attention to detail, strengths, weaknesses, and the other standard “fit” questions.

For PE, your story needs to show why you want to be an investor rather than an advisor – especially if you’re coming from the sell-side.

So you need to add something about adding more value, learning about the operations of companies, or gaining more responsibility to the “Why you’re here today” part of your story.

Technical Questions

The key differences from investment banking technical questions:

  1. In PE interviews the questions are more advanced and require more than just rote memorization – you’re not going to get any “What’s the formula for Enterprise Value?”-type questions.
  2. Often the technical questions are tied to your deal experience or case study, so you need to know those in-depth.

If you want to prepare for these questions, the 2 best resources are the Investment Banking Interview Guide and the Breaking Into Wall Street Financial Modeling Courses.

Even though it’s labeled “investment banking,” the guide covers advanced technical questions, your story, and how to discuss deal experience (see below) so it’s perfect for PE.

The financial modeling courses include 3 different levels of LBO models, from “quick and dirty” to “super-advanced” so you can sign up for those to brush up on your modeling skills.

Deal Experience Questions

Now we get to the fun part.

These questions are among the most important in PE interviews, because they’re your chance to prove that you can make money for the firm.

So you need to be careful about which deals you talk about – as with private equity resumes, it’s best to pick:

  1. Unusual Transactions – Divestitures, distressed M&A, or anything other than the standard sell-side auction.
  2. Transactions Where You Contributed A Lot – Did your valuation raise the negotiating price? Did you uncover something that saved your client money?

Leveraged Buyouts can be good to discuss since they’re directly relevant to PE, but with limited time you should favor deals where you made a significant contribution.

You do not need to pick closed deals or even announced deals – just make them anonymous (“a pharmaceutical company”) if the information is not yet public.

How to Talk About Your Deals

You should talk about your deals similar to how you write about them on your resume.

You want a summary sentence giving the main deal parameters, and then an understanding of the 2-3 key issues / pieces of analysis you developed.

Let’s go back into ancient history – the height of the LBO boom in 2007 – and look at one of the biggest deals back then, the $45 billion LBO of TXU by KKR.

Here’s how you might introduce the deal:

“One deal I worked on was the $45 billion LBO of TXU by a KKR-led consortium of private equity firms. The Company had around $10 billion of revenue and $6 billion of EBITDA and delivered electricity to the Texas utility market.

The deal itself was about the cyclical attractiveness of the utilities sector, and how far the LBO boom had come by then – and we ran into a host of major issues, from regulatory to environmental, as the deal was in its final stages.”

So now you’ve set the stage – notice how you’ve mentioned the approximate deal size, revenue, and EBITDA as well as the crux of the deal.

The interview would now respond:

Interviewer: “Of course, that was a huge deal. Let’s talk about the financial metrics – maybe you can walk me through the numbers there.”

At this point you would go into the EBITDA purchase multiple, the company’s revenue growth and margins, and whether the deal overvalued or undervalued TXU.

You could also mention the LBO analysis you completed and the IRR your model predicted.

Interviewer: “You mentioned the regulatory issues before – I understand that as part of the deal, the company agreed not to build certain power plants.

What was the impact of that?”

So now you’d go into the financial analysis and how you set up multiple scenarios to show the impact of power plants being constructed.

This is a great opportunity to show how you earned more money or saved money for your firm – if your analysis resulted in a higher or lower price or even the possibility of a different price or different terms, point that out.

You need to prove that you will make money for the PE firm without them asking you about it first.

Interviewer: “Great. Let’s talk about the debt on the deal. Can you walk me through what kind of package your bank put together?”

Start with the total amount of debt and the number and type of tranches – bank debt? High-yield? Mezzanine? PIK?

If they ask for more detail, you can go into the approximate interest rates and give an idea of the covenants.

You do not need exact numbers on these – approximations are fine.

Other Types of Deals

These are the points you need to know for LBO deals – for regular M&A deals the discussion would be similar but you’d talk about the accretion / dilution model rather than the LBO model.

I recommend against discussing IPOs and capital markets-type deals, but if that’s all you have the basic structure is similar: summary, analysis, key issues, and what you contributed.

What If You Don’t Have Any Deal Experience?

If you’re a management consultant or you’re not coming from an investment banking background, you won’t have deal experience.

So you need to find close substitutes instead – for consulting, those might be due diligence engagements or any type of operational improvement to a company.

If you’ve done equity research or investment/asset management, discuss companies you initiated coverage on or recommended investing in.

If you’re coming from a corporate or business development background, talk about partnership deals, integration work, or any type of long-term project that required significant analysis.

And if you’re not in any of these categories, well, PE will be an uphill battle.

Private Equity Case Studies

There’s an entire article on private equity case studies on M&I, so I won’t repeat everything here.

Instead, here’s the 30-second version:

  • Usually you get an Offering Memorandum and financial documents on a company.
  • Then you have to make an investment / no investment decision and back it up with a presentation and Excel model.

The key points to keep in mind:

  • Make a decision one way or the other. You’d be surprised how many people complete case studies and never say, “Yes, invest” or “No, don’t invest.”
  • Provide a summary slide in the beginning with your investment decision and back it up with 3-5 key points. Summarize the risks, mitigating factors, and expected returns.
  • Keep your presentation to 10 slides at the most, with an intro slide, conclusion slide, and a few slides on the quantitative and qualitative aspects of the deal.
  • Don’t obsess over formatting – just make sure it’s readable.

At some firms, you will have to do this on the spot and you’ll have very limited time; other places will give you a few days to a week to craft this.

Do not go crazy and spend 100 hours doing this – think 80/20 and focus on the 20% that matters.

And do not send this over to your presentations department – rumors circulate rapidly in investment banking and you might get executed.

LBO Modeling

In addition to case studies, some PE firms give you modeling tests and expect you to build an LBO model in real-time during interviews.

Keep your models as simple as possible.

You are under extreme time pressure, so forget about 15 scenarios, 12 tranches of debt, and depreciation schedules.

Instead, do the following:

  1. Sources & Uses – Go with a simple view that has the purchase price, transaction fees, and debt/equity used. Maybe assume 1-2 tranches of debt but don’t go beyond that unless you’re asked to do so.
  2. Basic Income Statement – Make revenue growth a simple % estimate, assume that SG&A and other expenses are a percent of revenue, and go down to EBITDA and Net Income.
  3. Basic Balance Sheet – Include the basic items like Cash, Accounts Receivable, Accounts Payable, PP&E and Debt, and use simple assumptions such as % Revenue and % OpEx for the projections. Sometimes you can skip the balance sheet altogether but it depends on what the PE firm is looking for.
  4. Basic Cash Flow Statement – Start with Net Income, add back D&A and the change in working capital and subtract CapEx to reach the cash flow available for debt repayment.
  5. Debt Schedules – Assume that any excess cash flow is used to make optional prepayments (except for high-yield debt); for bank debt you should make simple percentage estimates for mandatory principal repayments each year.
  6. IRR Calculation – Include this at the end and do 1-2 sensitivity tables on variables like purchase multiple, exit multiple, revenue growth, and EBITDA margins.

If you want to learn all of this more in-depth and brush up on your financial modeling skills, sign up for the Excel & Modeling Fundamentals course – we go through 2 examples of “PE interview-ready” LBO models there.

And if you want more advanced material or you need a more complex LBO model, sign up for the Advanced Modeling course – the LBO model there borders on excessive, just the way bankers like it.

Selling vs. Buying

In addition to understanding the format of interviews, interview questions, case studies, and LBO modeling, keep in mind the following:

Do an equal amount of “selling” and “buying.”

That was very solid advice given to me by a well-known PE headhunter.

While you definitely want to “sell” yourself as much as possible, you also want to do some due diligence on the firm.

If there’s a big cultural misfit, bail out early on. If there’s a lot of cold-calling involved and you hate that, forget about the firm.

PE hiring is more long-term than banking – so you need to be 100% confident of what you’re getting yourself into.

Differences in Hedge Fund and Venture Capital Interviews

Hedge fund interviews are similar and also involve case studies and/or modeling tests.

They will focus more on your interest in the markets and how much you enjoy investing and may not be quite as precise on the quantitative side.

Venture capital interviews are even more focused on fit and less on finance/deal experience. VC firms want people who are genuinely interested in technology and startups rather than the get-rich-quick crowd.

Corporate development job interviews are somewhere in between VC and PE interviews; they won’t focus as much on modeling, but they are likely to ask about your deal experience.

Timeframe for Interview Decisions

The PE interview timeframe is generally much longer than what you see in banking.

There are some exceptions – for example, at KKR, Blackstone, and other mega-funds, they make decisions quickly and move in weeks rather than months.

Those firms start interviewing in March / April and finish up before the summer.

Middle-market and growth equity firms take much longer and often put you through multiple rounds, dinners and breakfasts and all sorts of hoopla to make a decision.

Final Words: Last-Minute Private Equity Prep

So how do you prepare for private equity interviews if you’re an investment banking analyst with limited time?

  1. Prepare Your Deal List – Make a list of everything you’ve worked on and pick the 2-3 best to speak about in interviews – think long and hard about your contributions to each one as well.
  2. Review Your Deals – Go over the background information, financial metrics, debt details, and most importantly how your work led to a higher or lower price / better terms.
  3. LBO Practice – Practice creating the simplest LBO model possible and do it so much that you can go from blank sheet to full model in 30-45 minutes.

What, you’re looking for more?

Even More

OK, fine – start by reviewing these PE and VC-related articles:

Those should get you started on the way to PE interview domination.

And if you’re still looking for more or want to brush up on your technical interview questions or modeling skills, sign up for the 2 programs I’ve been recommending throughout this article:

We don’t have a PE interview-specific product, but if you go through everything I’ve listed here you will be more than prepared to vanquish the competition and land PE offers.

Interviews, Private Equity


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Comments

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105 Responses to “How to Ace Your Private Equity Interviews”
  1. lllll:

    One of the best posts I have ever seen on any relevant forums/blogs and certainly your best.

    Thanks a lot for your help! Keep them coming

    Reply
    • M&I:

      Thanks! Finally had some free time this weekend to write this. More coming soon…

      Reply
  2. J$:

    Great post, thanks for taking the time to do this.

    (when is the book coming out?)

    Reply
    • M&I:

      Thanks, glad you enjoyed. A more in-depth guide… wish I could say next week but probably at least a few weeks away depending on how busy work gets.

      Reply
  3. ABS:

    Great post, keep up the good work

    Reply
    • M&I:

      Thanks ABS, glad you enjoyed it. Full guide coming soon. :)

      Reply
  4. Ralph:

    Wow … as someone who used to write these sorts of things re: consulting interviews, I’ve got to bow down to the thoroughness and depth of your explanation. I’m far from being PE material, but after reading this I feel almost confident enough to try it myself. You shouldn’t be giving away this sort of advice for free — it’s a real service.

    Reply
    • M&I:

      Thanks Ralph, I’m glad you were impressed. :) And don’t worry, a paid version is coming soon…

      Reply
  5. G-PE pro:

    Thanks for the indepth material, i really think that companies in the middle east should read this, because we don’t have such depth in the process of hiring for PE companies.

    Regards,

    Reply
    • M&I:

      Thanks. Yeah I’ve heard the international recruiting process for PEs is a bit haphazard, interesting to see confirmation of it from you.

      Reply
  6. College Student:

    Very impressive. I am ready to start studying for my interview with such confidence now. I thank you for putting this together. Thank you!!!

    Reply
  7. danny:

    can you do a similar run-thru for Equity Research

    Reply
    • M&I:

      Hey Danny,

      I’d like to but unfortunately I don’t know as much about equity research… perhaps I’ll have a guest writer cover this.

      Reply
  8. ruchir:

    This is a really good post… i am really finding it useful… hope the guide is coming out soon. i can help you out with building a model… let me know..

    cheers,
    ruchir

    Reply
    • M&I:

      Thanks for the offer ruchir – I’m still working on the guide but have had very little time lately, so it’s on hiatus for now.

      Once I finish up in June, though, I’ll be devoting a lot more time to this and will be announcing some exciting stuff come August or so!

      Reply
  9. ruchir:

    hey,

    just got a call for a PE interview and i am told that they have case studies… any idea or sample or case studies that you may have.. will be very helpful

    regards
    ruchir

    Reply
    • M&I:

      Hey Ruchir,

      Unfortunately I don’t have much in the way of sample case studies… that’s one thing I’m working on for the site but probably won’t be ready anytime soon.

      Generally it’s pretty basic – usually a CIM or something similar on the company, then you recommend an invest or no-invest decision. There’s not much more to it than what I wrote above. If you have more specific questions feel free to email me.

      Reply
      • ruchir:

        Hey,

        i wanted to understand the following:
        - What is the interviewer looking out for – i understand he would like to see me do some analysis, mathematical knowledge, inquisitive thinking and honestly some smart questions
        - What is the structure one should follow in such interviews. My personal structure is to go into Management, Business and the Industry and try and get out the unique things about the business and subjective reasons for investing. For the objective part ie valuations try and understand the comps, if he has the data ofcourse.

        Does this make sense? Also do mail me your email id.

        Cheers,
        rj

        Reply
        • M&I:

          Here are some brief answers:

          -Interviewer generally looking to see you have good deal experience, know all the financial basics that you learned in banking and can think through and make rational investment recommendations based on logic. But honestly fit goes a LONG way, especially at smaller places.

          -I would start with an overview of your recommendation (invest/no invest) with a few brief points on why/why not. Then go into what the business does, the market/industry overview, management, competition and financial overview with valuation if you have comps etc. Present a model that shows potential IRRs from the investment (keep it simple). And finish off with your conclusion and re-iterate the points you made at the start.

          Reply
        • ruchir:

          Alright thanks.

          I was also asking from a case study point of view. I am imagining that he may give me a case study like how they do in consulting interviews. In that case, what would be a potential way of plodding him.

          Reply
        • M&I:

          Yeah in my experience case studies for PE interviews are more the type of thing given to you in advance or where you get a few hours to work on them… and not as much like the on-the-spot consulting ones where you have to calculate the number of chickens per square feet or anything.

          Reply
        • ruchir:

          Ok. Maybe that makes sense. Lets see, what i get with.

          Thanks a ton.
          Ruchir

          Reply
  10. R:

    Hi

    Very nice post.

    I have few questions, could you please help me with these.
    1) I am working in a capital market division of an investment bank, how can I show my work experience which would be of interest to a private equity firm
    2) I have basic knowledge of valuation methodology used by PE firm through my CFA exam , but should I do more reading on this as I have a very little time for the preparation .

    Thnks
    R

    Reply
    • M&I:

      1) That’s a tough one – try to emphasize any modeling work you did vs. the more qualitative side. Anything on due diligence is also good, but avoid writing about the generic stuff like drafting S-1s etc.

      2) You do need to know basic valuation but CFA-level knowledge is not necessary. Better to understand LBO models and such and focus on case study / modeling prep.

      Reply
  11. Sheldon:

    Very interesting guide. Are you planning to do a similar guide for hedge funds?

    Reply
    • M&I:

      Hedge funds are much, much harder to generalize because every interview is different and there’s so much more variety. I also know less personally about them because I went through fewer interviews… it may be coming one day but I’d need additional research first.

      Reply
  12. WL:

    This guide is great. Did you ever get around to doing the sample LBO model?

    Reply
  13. K-rear:

    Thank you for this great post. I have a dilemma: I have worked for the last 10 years as a Sales Trader / Broker Dealer, and I would like to switch to Private Equity…Given my background I have zero modeling/deals skills, so I m thinking about getting an MBA/ and an an internship to fix that issue. What would you recommend as a the best path for me?

    Reply
    • M&I:

      Yes, just make sure the internship is before the MBA because you stand almost 0 chance getting in after without PE/IB experience.

      Reply
  14. Kylie:

    This is a great overview on PE interviews. I have an upcoming interview with a PE asset management firm and they have a math and excel testing component. According to HR, it is not a modeling test, they give you 5 simple math and excel questions and you have 30 minutes to answer it.
    She wouldn’t give out any more detail beyond that. Do you have any experience of this mode of testing? Or any ideas how I can prepare for this?

    Reply
    • M&I:

      No idea, I never got anything like that. Most PE interviews are about case studies or building a simple LBO model. If it’s just math and Excel questions I don’t think you can “prepare” too much – maybe just review basic probability etc. and make sure you know how to use Excel properly, but it doesn’t sound like it will have anything to do with finance or accounting.

      Reply
  15. Val:

    Hi,
    great article!
    I submitted several applications for a PE positions a few weeks ago, and I noticed that a hidden number had tried to call me twice on the next day while I was in a meeting. That, of course, got me wondering if a potential recruiter was trying to reach me.
    Do you have any knowledge if PE HR people would make the first contact over the phone even though you submitted an application per e-mail? As a sort of ‘real world’ test – to check how you react in unpredictable situations or something like that? And then failure to find you would considered as a sign that you are ‘unprofessional’ or ‘lacking commitment’?
    From my point of view, a person who is supposedly rather busy running arround in the office, trying to get ongoing projects moving, is not to be expected to be all the time reachable on the phone, therefore first contact is more logically to be made over e-mail and subsequently a telephone conversation can be scheduled when the potential hire can arrange a calm hour in privacy.
    I’d be interested to read your thoughts on that matter.

    Cheers,

    PS. Sorry, if that seems like a waste of time…

    Reply
    • M&I:

      I would not worry that much, just call them back later. And yes, they will often try to call you first just because it’s faster – email is very inefficient / slow, calling is always the better option.

      Reply
  16. Karthe:

    Hi,

    Your guide is really awesome. But I work for a PE placement firm, how do I approach the PE firms (buy side or sell side)

    Thanks a lot.
    Karthe

    Reply
    • M&I:

      I’m honestly not sure about that one – I’d probably just approach them by saying you know a lot about PE but are looking to make a change because you want to be closer to deals/investments etc. They will probably test the same types of things, i.e. whether you can model, technical skills, ability to analyze investments, etc.

      Reply
      • Karthe:

        Thanks a ton for your suggestions.

        Reply
  17. frank:

    hi,

    is there any particular homepage, where i can get some illustrativ examples (case studies) of all the types how a company can be valued?? EVA , DCF , Multiples etc.? As i do not have a proper overview of all the methods in relation to a proper balance sheet and derived from that the valuation examples??

    Reply
    • M&I:

      Not sure offhand. That information is very specific, so hard to come by – you can see an outline in the modeling program offered on this site though.

      Reply
  18. Hitesh:

    please accept my compliments this is the best and the most relevant post i have ever came across.After reading it i realized that for me it is close to impossible to break into a PE job.
    I am stuck into web based, secondary, qualitative research.nothing to do with finance or numbers at all.
    I am an Mba in finance who took up this job at the height of recession. Now I want to break free..as this will be suicidal in the long run.
    If there is a way out (which i dont see..) please do give a few pointers..i am raedy to work on them.. any advice on how to jump this boat..into what i want… will be immensely appreciated.
    Once again kudos to you for helping us lost mortals
    :)

    Reply
    • M&I:

      I would start by cold-calling local boutiques and pitching your background to them… also go through alumni from your MBA program, consider both PE and IB alumni.

      Reply
  19. Eastern Europe:

    Great post!

    Small question- why are PE firms never interested in talented young industrialists, I mean the kind/quality of people who earn more than their friends who went into IB (then PE) after graduation? The modelling you pick up in 2-3 months, but then someone is supposed to be able to advise a company to turn around, transform or just excel in growth. I just can’t understand why it would not be interesting to have some industrial leaders completing the hoard of ex IB analysts.

    Reply
    • M&I:

      I’m not sure what you mean by “young industrialists” but essentially PE has very little to do with operational knowledge and is far more finance than running a company. IB and PE are almost the same in terms of skill set – running a company is completely different and takes different skills.

      Reply
      • Eastern Europe:

        Thanks for answer, I’m just a bit surprised that PE houses consist of 99% ex IB guys and 1% industry guys (always at senior adviser level, halftime at their french Provence house and halftime at the board meets :). PE guys still have a 3-5 year perspective of actually transforming a company, not just gearing the balance sheet at the point of transaction. Maybe one associate in any team could provide value from having operational knowledge of an industry in which the PE house is focusing. The PE associate friends of mine are visiting their portfolio companies more or less every week anyhow, clearly they are involved.

        Anyhow, the grass is always greener on the other side, an eternal curse.

        Reply
  20. Isaac:

    Great article and tremendously helpful!

    I am an MBA without pre-MBA finance experience, but through my network, have landed a couple PE interviews – with the fundraising side of the PE shop. The interviews are all with mid-sized (20-50 people) firms. Do you have any idea what type of interview – and case – I can expect?

    Thank you very, very much for this service!

    Reply
    • M&I:

      Interviews will be similar but for fundraising they will focus on more qualitative traits and ask how well you can sell the fund, find limited partners, and so on.

      Reply
      • Lisa:

        Hey, I found you website extremely useful. Could you please develop further on what kind of interviews a person seeking a fundrasing/investor relations role at PE should expect? Would below questions still come up:
        - previous deal experience
        - LBO modelling
        - Investment case studies

        Thanks a lot!

        Reply
  21. Anup Patil:

    very nive article

    Reply
  22. Ed:

    Excellent article. Thank you for taking the time to share it. I am in a bit of a different category from many of those posting comments in that I have practiced as a corporate attorney in M&A for a few years, and I’m looking to make a switch to PE. I did a Law & Busines program that had me taking a number of classes at the business school, but short of an MBA, and it’s been a while since I’ve looked at DCF, enterprise value, etc. We deal with transactions every day, but usually a step removed from the buy-side analytics (though we’re constantly dealing with EBITDA multiples and deal structure). Other than brushing up on the technical side, any suggestions for an upcoming (informal) interview/meeting with a small PE firm?

    Thanks a lot.
    E.

    Reply
    • M&I:

      For small PE firms fit is almost more important so make sure your story is good and that your future goals tie in directly with what they do

      Reply
  23. Prashanth:

    Dear M&I,

    Excellent, Perfect and Greatest post.Thank you so much for SUPER explanation. You must be a PE guru.

    Regards

    Reply
    • M&I:

      Just the man behind the curtain…

      Reply
  24. Raju:

    I am asked to write a write up on. “Why Do I want to join equity research?” I am a fresher and in MBA 1st year” I am applying for intern in some MF company.
    Please respond fast
    Thank you.

    Reply
    • M&I:

      Talk about how you want to be more creative in your analysis of the markets

      Reply
  25. Texas:

    Hi M&I Lovable

    I am talking to 2 different firms. Could you share your thoughts on which one could open doors to a bigger IB (in natural resources).
    The 1st one is a Real Estate PE ($100MM) in Texas.
    The 2nd one is a generalist MM IB in Cali focusing on deals <$100MM.

    I mean is it easier to switch to IB if you start at a PE? But still this PE is in RE.

    Thanks a lot for your time :D

    Reply
    • M&I:

      Both are about the same but it’s hard to switch from PE to IB so MM IB probably better.

      Reply
  26. Patricia Guerreiro:

    hi. i got offered an interview at a bank but because im not in the UK i have to do a telephone interview. however, i will be in london a week after the scheduled interview. should i ask them if they would give me an opportunity to meet me in person while I’m there? Do i address them by Dear recruiter or Dear Mrs. (name of recruiter).?

    thanks!

    Reply
    • M&I:

      Sure. Always use the real name if you have it.

      Reply
  27. PE Candidate:

    Hi Brian,

    I am going to have my first ever PE interview and I need your advice. I will be interviewed by the head of investment solutions who is responsible for investment origination and client relations. Please let me know the 4-5 questions he is most likely to ask and how to go about answering them. Many thanks for your help with this.

    Reply
  28. Cynthia:

    Hi,

    I am an international 3rd student. Your website has helped me a lot in my process of preparing. I really want to thank you guys for all your jobs have done!! I read your every email.

    I just got an interview with Blackstone real estate interview next week. It will be my very first time. That really freak me out cuz I am international student, having no real estate or PE related experience and did not expect this interview invitation at all.

    Thus, could you just give me some tips to prepare it in such a short time?? Any must-read PE or real estate tips? Anything specifically about Blackstone?

    Thank you very much!

    Reply
  29. Anky:

    Brain,
    Great article. Well there is always been talks about PE and Hedge funds being good exit opportunities for many profiles. Well, how about an exit opportunity for someone who has spent like 10-15yrs in PE?
    One unique exit opportnuity I thought is, getting associated with a industry where you have spend substantial time during your PE job doing due dilligence and other such extensive research and join them as a CEO, CFO, and other such senior mgt roles. This is especially because PE involves long term research and knowing more than just numbers and drilling into operational aspects of the company. What say?

    Reply
    • M&I:

      Sure you could do that a lot of people join portfolio companies

      Reply
  30. James:

    Understand that HFs will also do case studies but how would these differ from PE case studies? To be more specific, what kind of case should one expect from a value-focused event driven fund? Just a CIM and expectation of a DCF type valuation?

    Thanks.
    James

    Reply
    • M&I:

      They are almost the same: Should we invest, or not invest? And at what valuation?

      Reply
  31. shubham:

    brilliant article as usual.. nothing less expected from you..

    A quick que – i have a PE interview scheduled in a few days and they are gonna test me on due diligence case studies.. Where can i practise such case studies?

    Thanks

    Reply
  32. Caroline:

    Hi,
    I am thinking about joining a secondary fund team after 2 years of M&A. I need to tell them my expected salary and bonus. Can you tell me about the average salary level and the split between base and bonus? Also what are exit options?

    Thank you

    Reply
  33. Ayman:

    Dearest Brian,
    Every single compliment I could possibly say would be an understatement. I’m buying the modelling guidance in a week or so. THANK YOU.

    Reply
    • M&I - Nicole:

      Thanks! We appreciate your compliments.

      Reply
  34. Marwan:

    Hi Brian,

    I have an interview coming up next week with a Leveraged Finance Group. They mentioned the ideal candidate would be 1-2 years of total experience in a investment banking, private equity, specialty finance, mezzanine finance, transaction services, or financial services consulting.

    I don’t have any of this experience, but still got selected for an interview, I guess they liked my resume plus I am a CFA Level II Candidate and majored in Finance.
    My question is what technical questions I should expect? Additionally if I purchase one of your modeling courses, do you think that will help me with my interview process?

    Thank you in advance!!

    Reply
  35. Toyin:

    Hi Brian,
    your article, information and educational approach to getting straight to the point has been extremly encouraging. I have always wondered if i will ever get the chance to go into private Equity. I have always loved the idea of building up companies, sourcing for early stage funding and watching companies grow. I have worked in various organisations in roles from customer service, to auditing, funds admin and now retail banking. I also run a management consulting firm, where i do a lot of business plan development, corporate/marketing strategy formulation and financial projections (I use excel). I have always wondered if these skills will help me get into Private Equity and how best i can relate Retail banking with private equity or even management consulting. Please tell me, do you reckon there is a chance for me?

    Reply
    • M&I - Brian:

      They may help a bit but most of the time they want former bankers, or at least people who worked in Big 4 in M&A / Valuation and so on. So I would try to move into one of those, or somehow demonstrate your modeling and deal skills in other ways.

      Reply
      • Toyin:

        Thanks Brian. I have always loved the idea of investment banking, PE but until I stumbled upon your site, I never really knew how to break into it. I ended up working in commercial banking and then moved to retail banking, but realised quickly that this was not what I wanted, I don’t build financial models as a retail banker, I don’t advice on business start ups, what I mainly do is look for small businesses that need financing like overdraft, auto loan, consumer finance and package them for and defend them at credit and risk committee. I have my Masters in Management and Finance, so I know there’s a lot more to finance than retail banking. That’s why I want to really go into Investment banking or Private equity. My consulting business has helped me achieve some of the skills needed, but it’s nowhere near what I would learn or develop at a bulge bracket/boutique IB/PE firm; I don’t think retail and commercial banking would either.

        Reply
  36. Sumaiya:

    Hi,
    I have a few questions. I have recently applied to a private equity firm for an associate position. I called them and now I am in very good terms with the recruiter. However, he said the job got pushed 1 month ahead and interviews will take place in December. I emailed in November just to express my interest but I never heard back from them. Should I wait till December? Or should I follow up with another call? How long to P.E firms take to follow up roughly?
    Thanks

    Reply
    • M&I - Brian:

      Follow-up now. You need to be aggressive. small firms especially are disorganized and rarely have things together.

      Reply
      • Sumaiya:

        I just don’t want to seem too obnoxious. But It’s December 5th now and the month has just began. Should I call the recruiter who actually does the interviews and say “I recall you telling me that the job interview process got pushed ahead by one month. I am just following up on that”

        Should I also mention that “I am still really interest to carry out an interview with you?”

        Let me know soon. I am thinking of calling them back this week if you suggest that.

        Reply
        • M&I - Nicole:

          When was the last time you call them? If it was over a week ago (and assuming the interviewer hasn’t specified a time for you to call them, or hasn’t told you that he/she won’t have an answer till a certain date), it is a good idea to follow up and ask them when the interview process begins.

          Reply
          • Sumaiya:

            Well, I called them in October. At that time he was checking resumes and he said thanks for calling, I really appreciate it. He knows my full name, background information, education and etc. All he said was it got pushed one ahead. Now it’s December and I am so anxious because I want this job badly! Shall I call in tomorrow and ask about the interview process which takes place in december? Do P.E firms like aggressive types of individuals?

          • M&I - Nicole:

            Yes. Just call them.

          • Sumaiya:

            Thanks for the tips. I aced my interview which ended up occurring right when I called them. They decided to put me on spot lol. I start on the third week of January 2012 – Again, thank you for your tips! Will keep visiting your blog

  37. Vitalii_L:

    Can someone give a link to KKR`s careers website?

    Spent half an our there and still haven`t found any link.
    Google cannot found anything useful.

    Maybe I became to stupid to find a link named “Careers”.

    Appreciate your help

    Reply
  38. Confused:

    Hi,

    I am currently doing my rotation in PE + VC arm of the company I’ve just entered as a fresh graduate. It’s an investment management company as a whole. A brief background: I come from a non-financial background, and my fundamentals are still weak. Given the experience so far, I’ve found that my initial work involves fact-finding, market research, company product research (non-financial) etc., typical for an entry-level analyst. No doubt, I will be learning about valuation, making proposals, meeting people if I ever decide to join the dept after the rotation programme.

    My question, do you think now is the right time for me to join the PE industry? I have a feeling that I shouldn’t, because people only go into PE once they have enough experience, and also ultimately, the jobs in the industry is about adding values. How can I add value if I don’t have any corporate finance experience right?

    Please advise. Thanks.

    Reply
    • M&I - Nicole:

      It is hard to value w/o the corp fin experience. However, if they take you on I presume you can help them out w entry level work, and trying to develop relationships w corporates and source investments

      Reply
  39. PEdophile:

    Hello Mr. Brian,

    Thanks for this nice article. I too am (desperately) interested in landing a PE analyst role, but have zero deal experience. I have only heard abt Investment Banks, though had no luck getting into anyone :). Frankly, I am not interested in Investment Banking but still want to do PE, because I am a knowledge driven investment fanatic with very little sales skills or the patience to deal with clients.

    I have a total workex spanning over less than two years with the Corp Strat Dept of an Indian Conglomerate. I was wondering if there is a way to leverage this experience and, also, I am looking at PE roles that solely involve decision support for the partner (or whatever the PE-head is called); i.e. to buy (at what price) or not to buy, without being overly concerned by the financing bit. Tks for reading.

    Cheers

    Reply
    • M&I - Nicole:

      I’d suggest you to contact GPs of PE firms and speak to them re your interest in working for them. Don’t think too much, just contact them and see how it goes

      Reply
  40. Wait and watch:

    Hi,

    I had cold emailed a GP of a medium sized fund last week and he replied asking his EA to “get in touch and coordinate for the interview shortly” marking the interviewers also on mail. But have not heard anything from them yet. Should I follow up with a polite mail or should I just adopt a wait and watch strategy. Any sort of help would be greatly appreciated.

    PS: I’m from India and most of the stuff you mention on M&I are quite relevant to the domestic situation out here. Great job anyways! Keep it up!

    Reply
    • M&I - Nicole:

      If it has been over 3-4 business days since you’ve last heard from them, you should follow-up with a polite email. Thanks for your note.

      Reply
  41. Agung:

    Hi,
    I am from Indonesia. How’s the recruiting process here like?What’s the best chance of getting a PE job here?Indonesia is a growing PE markets and many firms are coming and recruiting and I hope to exploit these oppurtunies.

    Reply
    • M&I - Nicole:

      To increase your chances, network and speak to people who work in the industry

      Reply
  42. Hiatus:

    Hi,

    It’s been a month since I first touched base with a $500mn 5-guys team PE fund. Initially it seemed like they were really keen on taking me. They made it look like they wanted to be followed up since when I followed up within a week after the initial contact for an interview they immediately gave me the dates. I believe the interview was quite an OK affair with the interviewers beaming positively and asked me to wait for the partner round next week.

    Its been two weeks since then and I sent them a mail and followed up with a call and the associate guy said he’s busy and he’ll return my call. And since then there’s been no development whatsoever. How long do they usually make you wait? Especially when they say something like “we’ll get back to you on Monday”, “I’ll call you back in ten minutes” and somehow just get busy in their stuff or do they actually want to test someone’s perseverance and build up some drama or they’ve just lost interest in me for God-knows-what-reason?

    Thank you for bearing with a long note. It would be great if you could throw some insider insights.

    Reply
    • M&I - Nicole:

      Just call him back and see how it goes!

      Reply
  43. morange:

    Hi,

    Thanks for the great article. I have an upcoming interview with a credit-oriented fund focused on middle markets. They solely do senior and subordinated debt financings. Any suggestions on how to tackle the technical interview? Will it be similar to the standard PE technical interviews?

    Thanks!

    Reply

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