Private Equity Case Study: Full Tutorial & Detailed Example (2022)

Private Equity Case Study: Full Tutorial & Detailed Example (1)

The private equity case study is an especially intimidating part of the private equity recruitment process.

You’ll get a “case study” in virtually any private equity interview process, whether you’re interviewing at the mega-funds (Blackstone, KKR, Apollo, etc.), middle-market funds, or smaller, startup funds.

The difference is that each one gives you a different type of case study, which means you need to prepare differently:

What Should You Expect in a Private Equity Case Study?

There are three different types of “case studies”:

  • Type #1: A “paper LBO,” calculated with pen-and-paper or in your head, in which you build a simple leveraged buyout model and use round numbers to guesstimate the IRR.
  • Type #2: A 1-3-hour timed LBO modeling test, either on-site or via Zoom and email. This is a pure speed test, so proficiency in the key Excel shortcuts and practice with many modeling tests are essential.
  • Type #3: A “take-home” LBO model and presentation, in which you might have a few days up to a week to pick a company, research it, build a model, and make a recommendation for or against an acquisition of the company.

We will focus on the “take-home” private equity case study here because the other types already have their own articles/tutorials or will have them soon.

If you’re interviewing within the fast-paced, on-cycle recruiting process with large funds in the U.S., you should expect timed LBO modeling tests (type #2).

If the firm interviews dozens of candidates in a single weekend, there’s no time to give everyone open-ended case studies and assess them.

You might also get time-pressured LBO modeling tests in early rounds in other financial centers, such as London.

The open-ended case studies – type #3 – are more common at smaller funds, in off-cycle recruiting, and outside the U.S.

Although you have more time to complete them, they’re significantly more difficult because they require critical thinking skills and outside research.

One common misconception is that you “need” to build a complex model for these case studies.

But that is not true at all because they’re judging you mostly on your investment thesis, your presentation, and your ability to answer questions afterward.

No one cares if your LBO model has 200 rows, 500 rows, or 5,000 rows – they care about how well you make the case for or against the company.

This open-ended private equity case study is often the final step between the interview and the job offer, so it is critically important.

The Private Equity Case Study, in Parts

This is another technical tutorial, so I’ve embedded the corresponding YouTube video below:

Table of Contents:

  • 4:32: Part 1: Typical Case Study Prompt
  • 6:07: Part 2: Suggested Time Split for a 1-Week Case Study
  • 8:01: Part 3: Screening and Selecting a Company
  • 14:16: Part 4: Gathering Data and Doing Industry Research
  • 22:51: Part 5: Building a Simple But Effective Model
  • 26:32: Part 6: Drafting an Investment Recommendation

Files & Resources:

We’re going to use Cars.com in this example, which is one of the 15+ case studies in our Financial Modeling Mastery course.

The full course includes a detailed, step-by-step walkthrough rather than this summary.

(Video) The Private Equity Case Study: The Ultimate Guide

Part 1: Typical Private Equity Case Study Prompt

In some cases, they’ll give you a company to analyze, but in others, you’ll have to screen for companies yourself and pick one.

It’s easier if they give you the company and the supporting documents like the Information Memorandum, but you’ll also have less time to complete the case study.

The prompt here is very open-ended: “We like these types of deals and companies, so pick one and present it to us.”

The instructions are helpful in one way: they tell us explicitly not to build a full 3-statement model and to focus on the market and strategy rather than an “extremely complex model.”

They also hint very strongly that the model must include sensitivities and/or scenarios:

Private Equity Case Study: Full Tutorial & Detailed Example (2)

Part 2: Suggested Time Split for a 1-Week Private Equity Case Study

You have 7 days to complete this case study, which may seem like a lot of time.

But the problem is that you probably don’t have 8-12 hours per day to work on this.

You’re likely working or studying full-time, which means you might have 2-3 hours per day at most.

So, I would suggest the following schedule:

  • Day #1: Read the document, understand the PE firm’s strategy, and pick a company to analyze.
  • Days #2 – 3: Gather data on the company’s industry, its financial statements, its revenue/expense drivers, etc.
  • Days #4 – 6: Build a simple LBO model (<= 300 rows), ideally using an existing template to save time.
  • Day #7: Outline and draft your presentation, let the numbers drive your decisions, and support them with the qualitative factors.

If the presentation is shorter (e.g., 5 slides rather than 15) or longer, you could tweak this schedule as needed.

But regardless of the presentation length, you should spend MORE time on the research, data gathering, and presentation than on the LBO model itself.

Part 3: Screening and Selecting a Company

The criteria are simple and straightforward here: “The firm aims to find undervalued companies with stagnant or declining core businesses that can be acquired at reasonable valuation multiples and then turn them around via restructuring, divestitures, and add-on acquisitions.”

The industry could be consumer, media/telecom, or software, with an ideal Purchase Enterprise Value of $500 million to $1 billion (sometimes up to $2 billion).

Reading between the lines, I would add a few criteria:

  • Consistent FCF Generation and 10-20%+ FCF Yields: Strategies such as turnarounds and add-on acquisitions all require cash flow. If the company doesn’t generate much Free Cash Flow, it will have to issue Debt to fund these strategies, which is risky because it makes the deal very dependent on the exit multiple.
  • Relatively Lower EBITDA Multiples: If the company has a “stagnant or declining” core business, you don’t want to pay 20x EBITDA for it. An ideal range might be 5-10x, but 10-15x could be OK if there are good growth opportunities. The IRR math also gets tougher at high EBITDA multiples because the maximum Debt in most deals is 5-6x.
  • Clean Financial Statements and Enough Detail for Revenue and Expense Projections: You don’t want companies with 2-page-long Cash Flow Statements or Balance Sheets with 100 line items; you can’t spare the time required to simplify and consolidate these statements. And you need some detail on the revenue and expenses because forecasting revenue as a simple percentage growth rate is a bad idea in this context.

We used this process to screen for companies here:

  • Step 1: Do a high-level screen of companies in these 3 sectors based on industry, Equity Value or Enterprise Value, and geography.
  • Step 2: Quickly review the list of ~200 companies to narrow the sector.
  • Step 3: After picking a specific sector, narrow the choices to the top few companies and pick one of them.

In software, many of the companies traded at very high multiples (30x+ EBITDA), and others had negative EBITDA, so we dropped this sector.

In consumer/retail, the companies had more reasonable multiples (5-10x), but most also had low margins and weak FCF generation.

And in media/telecom, quite a few companies had lower multiples, but the FCF math was challenging because many companies had high CapEx requirements (at least on the telecom side).

We eliminated companies with very high multiples, negative EBITDA, and exorbitant CapEx, which left this set:

Private Equity Case Study: Full Tutorial & Detailed Example (3)

(Video) Growth Equity: Full Tutorial & Case Study

Within this set, we then eliminated companies with negative FCF, minimal information on revenue/expenses, somewhat-higher multiples, and those whose businesses were declining too much (e.g., 20-30% annual declines).

We settled on Cars.com because it had a 9.4x EBITDA multiple at the time of this screen, a declining business with modest projected growth, 25-30% margins, and reasonable FCF generation with FCF yields between 10% and 15%.

If you don’t have Capital IQ for this exercise, you’ll have to rely on FinViz and use P / E multiples as a proxy for EBITDA multiples.

You can click through to each company to view the P / FCF multiples, which you can flip around to get the FCF yields.

In this case, don’t even bother looking for revenue and expense information until you have your top 2-3 candidates.

Part 4: Gathering Data and Doing Industry Research

Once you have the company, you can spend the next few days skimming through its most recent annual report and investor presentation, focusing on its financial statements and revenue/expense drivers.

With Cars.com, it’s clear that the company’s “Dealer Customers” and Average Revenue per Dealer will be key drivers:

Private Equity Case Study: Full Tutorial & Detailed Example (4)

The company also has significant website traffic and earns advertising revenue from that, but it’s small next to the amount it earns from charging car dealers to use its services:

Private Equity Case Study: Full Tutorial & Detailed Example (5)

It’s clear from this quick review that we’ll need some outside research to estimate these drivers, as the company’s filings and investor presentation have little.

Fortunately, it’s easy to Google the number of new and used car dealers in the U.S. and estimate the market size and share like that:

Private Equity Case Study: Full Tutorial & Detailed Example (6)

The company’s market share has been declining, and we expect that trend to continue, but it’s not clear how rapid the decline will be.

Consumers are increasingly buying directly from other consumers, and dealers have less reason to use the company’s marketplace services than in past years.

We create an area for these key drivers, with scenarios for the most uncertain one:

Private Equity Case Study: Full Tutorial & Detailed Example (7)

You might be wondering why there’s no assumed uptick in market share since this is supposed to be a “turnaround” case study.

The short answer is that we think the company is unlikely to “turn around” its core business in this time frame, so it will have to move into new areas via bolt-on acquisitions.

For example, maybe it could acquire smaller firms that sell software and services to dealers, or it could acquire physical or online car dealerships directly.

Another option is to acquire companies that can better monetize Cars.com’s large and growing web traffic – such as companies that sell auto finance leads.

(Video) LBO Modeling Test: Full Walkthrough of a 60-Minute Test (Blank Sheet)

As part of this process, we also need to research smaller companies to acquire, but there isn’t much to say about this part.

It comes down to running searches on Capital IQ for smaller companies in related industries and entering keywords like “auto” in the business description field.

In terms of the other financial statement drivers, many expenses here are simple percentages of revenue, but we could also link them to the employee count.

We also link the website traffic to the sales & marketing spending to capture the spending required for growth in that area.

Finally, we need to input the financial statements for the company, which is not that hard since they’re already fairly clean:

Private Equity Case Study: Full Tutorial & Detailed Example (8)

It might be worth consolidating a few items here, but the Income Statement and partial Cash Flow Statement are mostly fine, which means the Excel versions are close to the ones in the annual report.

Part 5: Building a Simple But Effective Model

The case study instructions state that a full 3-statement model is not necessary – but even if they had not, such a model would rarely be worthwhile.

Remember that LBO models, just like DCF models, are based on cash flow and EBITDA multiples; the full statements add almost nothing since you can track the Cash and Debt balances separately.

In terms of model complexity, a single-sheet LBO with 200-300 rows in Excel is fine for this exercise.

You’re not going to get “extra credit” for a super-complex LBO model that takes days to understand.

The key schedules here are:

  1. Transaction Assumptions – Including the purchase price, exit assumptions, scenarios, and tranches of debt.
  2. Sources & Uses – Short and simple but required to calculate the Investor Equity.
  3. Revenue, Expense, and Cash Flow Drivers – These don’t need to be super-complex; the goal is to go beyond projecting revenue as a simple percentage growth rate.
  4. Income Statement and Partial Cash Flow Statement – The goal is to calculate Free Cash Flow because that drives Debt repayment and Cash generation in an LBO.
  5. Add-On Acquisitions – These are part of the “turnaround strategy” in this deal, so they’re quite important.
  6. Debt Schedule – This one is quite simple here because the deal is not dependent on financial engineering.
  7. Returns Calculations – The IPO vs. M&A exit options add a bit of complexity.
  8. Sensitivity Tables – It’s difficult to draft the investment recommendation without these.

We pay special attention to the add-on acquisitions here, with support for their revenue and EBITDA contributions:

Private Equity Case Study: Full Tutorial & Detailed Example (9)

The Debt Schedule features a Revolver, Term Loans, and Subordinated Notes:

Private Equity Case Study: Full Tutorial & Detailed Example (10)

The Returns Calculations are also simple; we do assume a bit of Multiple Expansion because of the company’s higher growth rate by the end:

Private Equity Case Study: Full Tutorial & Detailed Example (11)

Could we simplify this model even further?

I don’t think the M&A vs. IPO exit options mentioned above are necessary, and we could also drop the “Growth” vs. “Value” options for the add-on acquisitions:

Private Equity Case Study: Full Tutorial & Detailed Example (12)

(Video) LBO Case Study Instructions | Entry Level Position in Private Equity

Especially if we recommend against the deal, it’s not that important to analyze which type of add-on acquisition works best.

It would be more difficult to drop the scenarios and sensitivity tables, but we could restructure them a bit and fold the scenario into a sensitivity table.

All investing is probabilistic, and there’s a huge range of potential outcomes – so it’s difficult to make a serious investment recommendation without examining several outcomes.

Even if we think this deal is spectacular, we must consider cases in which it goes poorly and how we might reduce those risks.

Part 6: Drafting an Investment Recommendation

For a 15-slide recommendation, I would recommend this structure:

  • Slides 1 – 2: Recommendation for or against the deal, your criteria, and why you selected this company.
  • Slides 3 – 7: Qualitative factors that support or refute the deal (market, competition, growth opportunities, etc.). You can also explain your proposed turnaround strategy, such as the add-on acquisitions, here.
  • Slides 8 – 13: The numbers, including a summary of the LBO model, multiples vs. comps (not a detailed valuation), etc. Focus on the assumptions and the output from the sensitivity tables.
  • Slide 14: Risk factors for a positive recommendation, and the counter-factual (“what would change your mind?”) for a negative one. You can also explain the potential impact of each risk on the returns and how you could mitigate these risks.
  • Slide 15: Restate your conclusions from Slide 1 and present your best arguments here. You could also change the slide formatting or visuals to make it seem new.

“OK,” you say, “but how do you actually make an investment decision?”

The easiest method is to set criteria for the IRR or multiple of invested capital in each case and say, “Yes” if the deal achieves those numbers and “No” if it does not.

For example, maybe the targets are a 30% IRR in the Upside case, a 20% IRR in the Base case, and a 1.0x multiple in the Downside case (i.e., avoid losing money).

We do achieve those numbers in this deal, but the decision could go either way because the deal is highly dependent on the add-on acquisitions.

Without these acquisitions, the deal does not work; the IRR falls by 10%+ across all the scenarios and turns negative in the Downside case.

We need at least 5 good acquisition candidates matching very specific financial profiles ($100 million Purchase Enterprise Value and a 15x EBITDA purchase multiple with 10% revenue growth or 5x EBITDA with 3% growth).

The presentation includes some examples of potential matches:

Private Equity Case Study: Full Tutorial & Detailed Example (13)

While these examples are better than nothing, the case is not that strong because:

  • Most of these companies are too big or too small to fit into the strategy proposed here of ~$100 million in annual acquisitions.
  • The acquisition strategy is unclear; acquiring and integrating dealerships (even online ones) would be very, very different from acquiring software/data/media companies.
  • And since the auto software market is very niche, there’s probably not a long list of potential acquisition candidates beyond the few we found.

We end up saying, “Yes” in this recommendation, but you could easily reach the opposite conclusion because you believe the supporting data is weak.

In short: For a 1-week open-ended case study, this approach is fine, but this specific deal would probably not stand up to a more detailed on-the-job analysis.

The Private Equity Case Study: Final Thoughts

Similar to time-pressured LBO modeling tests, you can get better at the open-ended private equity case study by “putting in the reps.”

But each rep is more time-consuming, and if you have a demanding full-time job, it may be unrealistic to complete multiple practice case studies before the real thing.

Also, even with significant practice, you can’t necessarily reduce the time required to research an industry and specific companies within it.

So, it’s best to pick companies and industries you already know and have several Excel and PowerPoint templates ready to go.

If you’re targeting smaller funds that use off-cycle recruiting, the first part should be easy because you should be applying to funds that match your industry/deal/client background.

(Video) How to do a Paper LBO (MUST Know for Private Equity)

And if not, you can always make a lateral move to a bulge bracket bank and interview at the larger funds if you prefer the private equity case study in “speed test” form.

FAQs

How do I prepare for a private equity case study? ›

So the suggested time split is as follows. On your first day so maybe for the first few hours this

What is private equity explain with example? ›

Private equity describes investment partnerships that buy and manage companies before selling them. Private equity firms operate these investment funds on behalf of institutional and accredited investors.

What should I study for private equity? ›

Candidates should have an bachelor's degree in an analytical major like finance, accounting, statistics, mathematics, or economics. Private equity fund management requires technical ability to analyze financial performance and estimate the value of a private company.

Are PE interviews hard? ›

Private equity interviews can be challenging, but for most candidates, winning interviews is much tougher than succeeding in those interviews. You do not need to be a math genius or a gifted speaker; you just need to understand the recruiting process and basic arithmetic.

How do I start my own case study? ›

5 key steps for writing your case study
  1. Introduce the customer. Set the stage for your case study with an introduction. ...
  2. State the problem. Every product or service is a solution to a problem. ...
  3. Introduce your product. This is where you begin solving the problem. ...
  4. Show results. The big reveal. ...
  5. Prove it.
5 Feb 2020

How do you crack a case study? ›

How to Approach a Case Study in 4 Steps
  1. Restate the question and make sure you understand the problem statement by confirming with the interviewer. ...
  2. Clarify the goals. ...
  3. Write out your structure. ...
  4. Ask questions to understand the trends of the client, industry, and product.

What are 5 examples of equity? ›

There are several types of equity accounts that combine to make up total shareholders' equity. These accounts include common stock, preferred stock, contributed surplus, additional paid-in capital, retained earnings, other comprehensive earnings, and treasury stock.

What are 10 examples of equity? ›

10 equity account types
  • Common stock. ...
  • Preferred stock. ...
  • Retained earnings. ...
  • Contributed surplus. ...
  • Additional paid-in capital. ...
  • Treasury stock. ...
  • Dividends. ...
  • Other comprehensive income (OCI)
11 Aug 2021

What are the three types of private equity funds? ›

There are three key types of private equity strategies: venture capital, growth equity, and buyouts.
...
3 Types of Private Equity Strategies
  • Venture Capital. Venture capital (VC) is a type of private equity investment made in an early-stage startup. ...
  • Growth Equity. ...
  • Buyouts.
13 Jul 2021

What skills does private equity need? ›

There are a number of key skills that the most successful players in the private equity business have in common.
...
Key Skills for Succeeding in Private Equity Jobs
  • Financial modeling.
  • LBO modeling.
  • M&A modeling.
  • General financial analysis.
29 Mar 2021

Is private equity a stressful job? ›

It's extremely difficult to get into private equity, and once you're in, the job is stressful and requires long hours and sacrifices, especially when deals are in their final stages.

Is private equity difficult? ›

Landing a career in private equity is very difficult because there are few jobs on the market in this profession and so it can be very competitive. Coming into private equity with no experience is impossible, so finding an internship or having previous experience in a related field is highly recommended.

How can I impress in private equity interview? ›

Good answers suggest to the interviewer what you can bring to the company. Check out recent deals, target companies, and say something that shows a genuine interest in the company you want to work for. “Summarize your experience in the context of their firm – why are you going to be useful to them?” advises McManus.

How many rounds are private equity interviews? ›

Private equity or leveraged-buyout funds usually conduct three to four rounds of interviews. For junior positions, however, the interview rounds could sometimes be as few as two.

What questions do they ask in a private equity interview? ›

Fund strategy & positioning
  • How many funds and/or product lines does the firm operate? ...
  • Which kind of assets does the company invest in? ...
  • What is the fund's investment strategy? ...
  • What is the size of the fund? ...
  • Which stage of the company's lifecycle does the fund invest in? ...
  • Where is the fund present?

What are the 4 most important parts of case study? ›

8 Essential Components of a Case Study
  • Start with a Compelling Title and Summary. ...
  • Share Background Information About Your Customer. ...
  • Explain the Challenge Your Customer Faced. ...
  • Discuss Your Customer's Decision Process. ...
  • Explain the Solution and Implementation. ...
  • Share the End Results. ...
  • Include Supporting Visuals and Quotes.
1 Feb 2022

What are the 5 essential elements of a great case study? ›

The Elements of a Great Case Study
  • (1) A time- and issue-bounded dilemma.
  • (2) Explanations of issues and concepts.
  • (3) A story, with vivid characters and moments.
  • (4) Data and other information.
  • (5) Scenarios that lead in different directions.
26 Feb 2019

What is the fastest way to memorize a case study? ›

A case study on one side

Condensing information onto one side of A4 or A3 is a really useful way of streamlining the case study and making it easier for a student to memorise. Writing out the notes forces the student to read (and hopefully process) the material which reinforces learning.

What are the 3 methods of case study? ›

He has helpfully characterised three main types of case study: intrinsic, instrumental and collective[8]. An intrinsic case study is typically undertaken to learn about a unique phenomenon. The researcher should define the uniqueness of the phenomenon, which distinguishes it from all others.

How do you answer a case study step by step? ›

There are several steps to writing an answer to a case study assignment:
  1. STEP 1: READ THE CASE STUDY AND QUESTIONS CAREFULLY. • ...
  2. STEP 2: IDENTIFY THE ISSUES IN THE CASE STUDY. ...
  3. STEP 3: LINK THEORY TO PRACTICE. ...
  4. STEP 4: PLAN YOUR ANSWER. ...
  5. STEP 5: START WRITING YOUR CASE STUDY ANSWER. ...
  6. STEP 6: EDIT AND PROOFREAD. ...
  7. STEP 7: SUBMIT.

What are the 4 types of equity? ›

There are a few different types of equity including:
  • Common stock.
  • Preferred shares.
  • Contributed surplus.
  • Retained earnings.
  • Treasury stock.

What are the 4 parts of equity? ›

Four components that are included in the shareholders' equity calculation are outstanding shares, additional paid-in capital, retained earnings, and treasury stock. If shareholders' equity is positive, a company has enough assets to pay its liabilities; if it's negative, a company's liabilities surpass its assets.

What are the two kinds of equity? ›

Two common types of equity include stockholders' and owner's equity.

Is equity an asset or liability? ›

Equity is also referred to as net worth or capital and shareholders equity. This equity becomes an asset as it is something that a homeowner can borrow against if need be. You can calculate it by deducting all liabilities from the total value of an asset: (Equity = Assets – Liabilities).

What is the most common form of equity? ›

Perhaps the most common type of equity is “shareholders' equity," which is calculated by taking a company's total assets and subtracting its total liabilities. Shareholders' equity is, therefore, essentially the net worth of a corporation.

What are two examples of equity investments? ›

Examples of equity investment include equity mutual funds, shares, private equity investments, retained earnings, and preferred shares.

What are the 7 types of equity funding? ›

Here are seven types of equity financing for start-up or growing companies.
  • 01 of 07. Initial Public Offering. ...
  • 02 of 07. Small Business Investment Companies. ...
  • 03 of 07. Angel Investors for Equity Financing. ...
  • 04 of 07. Mezzanine Financing. ...
  • 05 of 07. Venture Capital. ...
  • 06 of 07. Royalty Financing. ...
  • 07 of 07. Equity Crowdfunding.
16 Jun 2020

What are the 5 types of private equity? ›

Learn more about the nine types of private equity funds below.
  • Leveraged Buyout (LBO) A leveraged buyout fund strategy combines investment funds with borrowed money. ...
  • Venture Capital (VC) ...
  • Growth Equity. ...
  • Real Estate Private Equity (REPE) ...
  • Infrastructure. ...
  • Fund of Funds. ...
  • Mezzanine Capital. ...
  • Distressed Private Equity.

What are the roles in private equity? ›

Functions of Private Equity Companies
  • Raise Capital. ...
  • Sourcing, Due Diligence, and Deal Closing. ...
  • Management Through Improvement of Operations and Cutting Costs. ...
  • Sale/Exit Portfolio Companies at a Profit.
5 Mar 2022

What are the components of private equity? ›

Equity can be further subdivided into four components: shareholder loans, preferred shares, CCPPO shares, and ordinary shares. Typically, the equity proportion accounts for 30% to 40% of funding in a buyout. Private equity firms tend to invest in the equity stake with an exit plan of 4 to 7 years.

How many hours do you work in private equity? ›

Private Equity Associate Lifestyle and Hours

At many smaller funds and middle-market funds, you can expect to work 60-70 hours per week, mostly on weekdays, with occasional weekend work when deals heat up.

Does private equity pay more than consulting? ›

PRIVATE EQUITY WINS. Compensation. The package is often designed to attract investment bankers, who are better paid than strategy consultants. As a consequence, you should expect a significant increase of your total compensation package, up to 100% in some cases.

Does private equity pay more than banking? ›

The bottom line is that yes, the pay ceiling is higher in private equity, and there are MDs and Partners who earn many times – sometimes hundreds of times – what MDs in banking earn.

What are PE hours like? ›

In private equity, you'll work hard, but the hours are not nearly as bad. Generally, the lifestyle is comparable to banking when there is an active deal, but otherwise much more relaxed. You usually get into the office around 9am and may leave between 7pm-9pm depending on what you're working on.

Is private equity High Risk? ›

Overall, the risk profile of private equity investment is higher than that of other asset classes, but the returns have the potential to be notably higher. For investors with the funds and the risk tolerance, private equity can be a lucrative investment for a portion of a portfolio.

What are the problems of private equity? ›

7 Problems with Private Equity that Contribute to Wealth Inequality (And How to Fix Them)
  • But first, how does private equity work?
  • Higher valuations, lower returns.
  • Outsized influence.
  • Debt, debt and more debt.
  • Inequitable compensation structures.
  • Inequitable profit distribution.
  • Barriers to entry.
28 Sept 2021

What are the disadvantages of private equity? ›

3 Disadvantages of Private Equity
  • Requires upfront funding: As an investor, you'll likely need access to a substantial amount of capital to invest in a private equity firm. ...
  • It can be a lengthy process: It can take a while for a company to get on the radar of a private equity firm.
11 Sept 2021

How can I impress in private equity interview? ›

Good answers suggest to the interviewer what you can bring to the company. Check out recent deals, target companies, and say something that shows a genuine interest in the company you want to work for. “Summarize your experience in the context of their firm – why are you going to be useful to them?” advises McManus.

How do you crack a Deloitte case study? ›

Deloitte recommends taking these five steps to solve a case interview:
  1. Understand the issue and ask clarifying questions. ...
  2. Identify the underlying assumptions. ...
  3. Summarize specific issues and findings. ...
  4. State your recommendations. ...
  5. Outline next steps and the expected results or impact.

What questions do private equity ask? ›

9 Questions to Ask Every Private Equity Firm
  • 1) How large is your fund? ...
  • 2) What is your target return profile and strategy? ...
  • 3) What role will you play in the relationship during and after the transaction? ...
  • 4) How many investments will the partner have active at one time? ...
  • 5) What is the typical board composition?
10 Jun 2021

How many rounds are private equity interviews? ›

Private equity or leveraged-buyout funds usually conduct three to four rounds of interviews. For junior positions, however, the interview rounds could sometimes be as few as two.

How do I sell myself in an interview? ›

How to Sell Yourself in a Job Interview
  1. Look the part. Many hiring managers will form their first impression of you based on what you're wearing. ...
  2. Tailor your elevator pitch. ...
  3. Prepare meaningful anecdotes. ...
  4. Ask unique questions. ...
  5. Always quantify your achievements. ...
  6. Say the right things.

How do you give pep before an interview? ›

Job Interview Pep Talk -- Boost Your Confidence Before Your ... - YouTube

How do you start a case study answer? ›

There are several steps to writing an answer to a case study assignment:
  1. STEP 1: READ THE CASE STUDY AND QUESTIONS CAREFULLY. • ...
  2. STEP 2: IDENTIFY THE ISSUES IN THE CASE STUDY. ...
  3. STEP 3: LINK THEORY TO PRACTICE. ...
  4. STEP 4: PLAN YOUR ANSWER. ...
  5. STEP 5: START WRITING YOUR CASE STUDY ANSWER. ...
  6. STEP 6: EDIT AND PROOFREAD. ...
  7. STEP 7: SUBMIT.

How do you pass a case study interview? ›

Case interview tips
  1. Understand the issue; ask clarifying questions as needed.
  2. Identify the underlying assumptions.
  3. Summarize specific issues and findings.
  4. State your recommendations.
  5. Outline next steps and expected results/impacts.

What are the three most important areas of a case study? ›

Again, there are generally three parts: 1) restate POV + meta-statement regarding observations; 2) specific observations and their implications; 3) implications for future research and/or design.

What are 5 things a great portfolio includes? ›

As you begin to create your portfolio, there are several different categories that you should consider: Personal Information, Values, Personal Goals and History, Accomplishments and Job History, Skills and Attributes, Education and Training as well as Testimonials and Recommendations.

What are the 5 questions to ask before you invest? ›

5 questions to ask before you invest
  • Am I comfortable with the level of risk? Can I afford to lose my money? ...
  • Do I understand the investment and could I get my money out easily? ...
  • Are my investments regulated? ...
  • Am I protected if the investment provider or my adviser goes out of business? ...
  • Should I get financial advice?

What are the problems of private equity? ›

7 Problems with Private Equity that Contribute to Wealth Inequality (And How to Fix Them)
  • But first, how does private equity work?
  • Higher valuations, lower returns.
  • Outsized influence.
  • Debt, debt and more debt.
  • Inequitable compensation structures.
  • Inequitable profit distribution.
  • Barriers to entry.
28 Sept 2021

What skills does private equity need? ›

There are a number of key skills that the most successful players in the private equity business have in common.
...
Key Skills for Succeeding in Private Equity Jobs
  • Financial modeling.
  • LBO modeling.
  • M&A modeling.
  • General financial analysis.
29 Mar 2021

Videos

1. Simple LBO Model - Case Study and Tutorial
(Mergers & Inquisitions / Breaking Into Wall Street)
2. What to Research Before the Interview (with Private Equity Example)
(Peak Frameworks)
3. Private Equity Modeling - Private Equity Explained Pt.1
(Casual Business)
4. Salsify Deal (Example from our Video Newsletter)
(Steve Balaban)
5. Private Equity: The Consolidation Play and Due Diligence - John Poerink, Linley Capital
(Wharton School)
6. Venture Capital Investment Case Interview Question | Live Case Session
(Pavan Sathiraju)

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