Choose the currency you wish to use throughout the site. Equity funds within investment banks. Below is some good advice from specialist recruiting firm KEA Consultants about investment due diligence checklist pdf Private Equity Recruiting Process.
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. 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.
At a minimum you should know the fund’s size, how long they have been around, the stage at which they invest, which sectors they invest in and their investor base. Without fail, prepare some questions that you can ask the investment professionals at the firm where you’re interviewing, as they are likely to give you the opportunity during your interview. 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.
During the CV interview rounds there are certain points and questions that you should specifically prepare for. We have listed examples below for you to think about. If you’ve listed several transactions then make sure you really know what happened and know the relevant numbers: IRR, debt equity ratio, price, earnings multiple etc. Practice walking through your CV from university onwards in a structured 2-3 minute overview. If you are from investment banking you should definitely expect this question. 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? If you’ve done your homework on the firm, then you should be able to easily answer this question. From the companies you’ve worked with, which would make a good private equity investment and why?
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. Explain the mechanics of an LBO model? You need to be able to either talk an investment professional through this, or calculate a simple one on an A4 sheet of paper. Why are EBITDA and FCF important to private equity investors? You need to know the difference and explain how they are used in relation to the new debt borrowed for an LBO.