The private equity case study interview, and how funds differ

Private equity interviews add something banking interviews do not have: you are asked whether you would invest. The case study is where that judgement is tested, and it usually decides the offer.

The formats you will meet

• Paper LBO. Ten to fifteen minutes with pen and paper. Simple numbers, no calculator. Tests whether you know the mechanics cold.
• Timed Excel model. One to three hours from a short brief or a blank sheet. Tests speed, structure and error-checking.
• Take-home case. A confidential information memorandum, a few days, and a short investment memo or slides at the end, followed by a discussion.

How funds tend to differ

• Blackstone combines a modelling test (a paper LBO or a two to three hour Excel case) with a deal discussion and fit. Candidates report that investment judgement counts for more than raw speed.
• KKR uses a case study and an LBO model, and spends real time on the deals on your CV: why each was a good or bad investment.
• CVC processes in Europe often use a memorandum-based case plus a model, with sector questions on top.
• EQT asks about values and its thematic approach to investing alongside a modelling case.

What a good answer contains

1. A clear recommendation in the first sentence: invest, pass, or invest at a lower price.
2. Three or four reasons, each tied to a number: market growth, margin trend, cash conversion, entry multiple against peers.
3. The return. Base case IRR and money multiple, and what drives it: growth, margin, deleveraging or multiple expansion.
4. The risks that matter and how you would test them in due diligence.
5. A price. The highest multiple at which the deal still meets the fund's return target.

Mistakes that cost offers

• Building a perfect model and running out of time for the recommendation.
• Listing every risk instead of ranking the two that could break the deal.
• Assuming multiple expansion to make the return work.
• Not checking that the balance sheet balances and cash never goes negative.

Practise the mechanics first with a paper LBO, then time yourself on full models in model prep.