Calculate the Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC) for the financial sponsor. 2. Commercial and Investment Merits
[1. Read & Skim] ➔ [2. Build LBO Model] ➔ [3. Formulate Thesis] ➔ [4. Assess Risks] ➔ [5. Present Deal] 1. Read and Skim (First 15 Minutes)
No model is perfect. You must show that you can think critically about key assumptions by running sensitivity tables, typically on the and the exit year EBITDA . This demonstrates an understanding of the deal's risk profile.
Looking for further reading? Search for "LBO Model Template Excel (Free Download)" or "List of Private Equity Interview Questions PDF" to continue your preparation.
Partners are 55 years old, blind, and looking at your PDF on an iPhone. If they have to zoom in, you are fired. private equity interview case study pdf
Copy this checklist into your preparation notes to ensure your materials match institutional standards before your interview. Model Mechanics
Total Addressable Market (TAM) growth, tailwinds, and competitive landscape. Page 3: Financial Analysis & Valuation
Depending on the firm and the seniority of the role, you will encounter one of three formats. 1. The 1-to-3 Hour On-Site Modeling Test
Download the linked above. Set a timer for 60 minutes. Complete the 1-hour modeling test. Then grade yourself against the answer key. Repeat this process three times, and you will walk into any interview—from KKR to Blackstone to a $500M MM fund—with the quiet confidence that you have already solved their hardest problem. Calculate the Internal Rate of Return (IRR) and
In the financial world, a PDF is more than just a file format; it is a final deliverable. When a recruiter asks for a “case study PDF,” they are asking for a clean, immutable, professional record of your analytical thinking.
Recruiters and partners consistently point to the case study as the most decisive element of the private equity interview process. "The case study is the most decisive part of the interview process because it’s the closest you get to doing the job," says Gail McManus of Private Equity Recruitment. Unlike standard behavioral or technical questions, a case study is a performance-based assessment that evaluates your analytical skills, decision-making process, and cultural fit with a firm. The goal is to answer a single, fundamental question: "Would you invest in this company?"
You get 48 to 72 hours to review a comprehensive information memorandum. You build a detailed LBO model and a full PowerPoint presentation from scratch.
Securing a role in private equity (PE) requires passing the ultimate gatekeeper: the investment case study. This test evaluates your financial modeling skills, investment acumen, and communication strategy under intense pressure. Read & Skim] ➔ [2
When an interviewer challenges your assumptions, do not argue blindly. Acknowledge their point, explain your logic, and demonstrate how you would adjust your model to test their viewpoint. Conclusion
This is the nuance. You need cumulative Free Cash Flow. Assume EBITDA - Interest - Taxes - CapEx (simplified).
Your LBO model must be mechanically accurate, clean, and easily auditable. Interviewers will check if your model handles the fundamental plumbing of a leveraged buyout smoothly.
In the competitive landscape of private equity recruiting, the resume gets you in the door, but the case study decides whether you get the offer. While investment banking interviews focus on valuation methodologies (DCF, Comps, Precedents), private equity interviews focus entirely on machinery —specifically, the LBO model and operational value creation.
What makes this specific company attractive? (e.g., 95% recurring revenue, high switching costs, strong pricing power).