how to print the private equity interview course

How to prepare for a private equity interview?

This is one of those private equity interview questions that you really have to prepare for. Giving generic answers like “your firm has a great reputation” is not sufficient – you need to point out some real specifics. Spend time going through the company’s website and looking at their current and past portfolio companies.

What do you learn in a private equity course?

Here you will learn tangible skills on excel, accounting, valuations, forecasting, pre-money post-money valuations, deal structuring, term sheet and more. If I’m already in the profession, should I do this Private Equity course?

What is the private equity recruiting process like?

The Private Equity recruiting process differs dramatically depending on your current job and location. Investment Banking Analyst at a Bulge Bracket or Elite Boutique in New York: The process will be highly structured, and interviews will finish at warp speed.

How many times can I view the private equity course?

You can view the private equity course any number of times No eligibility as such. You should have a keen interest in learning. None. If you have basic knowledge of accounting, it will be great. However, if you do not have one, then you must complete the accounting modules in the bundle first. What do you get? Verifiable Certificates?

How do you prepare for a private equity case study interview?

6:2734:31The Private Equity Case Study: The Ultimate Guide - YouTubeYouTubeStart of suggested clipEnd of suggested clipSo the suggested time split is as follows. On your first day so maybe for the first few hours thisMoreSo the suggested time split is as follows. On your first day so maybe for the first few hours this you want to read the case study document. Understand the private equity firm strategy.

How do I pass a private equity interview?

5:1122:07Private Equity Interview Questions and Answers - YouTubeYouTubeStart of suggested clipEnd of suggested clipMultiple you choose you have to be able to explain it and to justify it you have to be able to talkMoreMultiple you choose you have to be able to explain it and to justify it you have to be able to talk about your assumptions. You made and the specific sources. And use of funding for the deal.

How difficult are private equity interviews?

The competition is fierce – a single entry-level role will receive around 300 applications – and the interview process is notoriously difficult. “Private equity interviews are incredibly competitive, and you don't get many chances to practice,” says Gail McManus, managing director of Private Equity Recruitment.

How many interviews do you need for private equity?

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 are asked in a PE interview?

9 Questions to Ask Every Private Equity Firm1) 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?More items...•

Why is IRR used in private equity?

IRR reflects the performance of a private equity fund by taking into account the size and timing of its cash flows (capital calls and distributions) and its net asset value at the time of the calculation.

How do I prepare for private equity internships?

How to Get a Private Equity Internship?Know all about private equity. The first step is to know what exactly you are getting into. ... Create a list of targeted companies. ... Prepare a resume. ... Follow up on interviews. ... Prepare for the interview.

How do you answer tell me about yourself?

How to answer “tell me about yourself”Mention past experiences and proven successes as they relate to the position. ... Consider how your current job relates to the job you're applying for. ... Focus on strengths and abilities that you can support with examples. ... Highlight your personality to break the ice.More items...

What makes a good LBO candidate?

An LBO candidate is considered to be attractive when the business characteristics show sustainable and healthy cash flow. Indicators such as business in mature markets, constant customer demand, long term sales contracts, and strong brand presence all signify steady cash flow generation.

How long do private equity interviews last?

A typical interview process will last 3 to 5 rounds (including the headhunter) with most rounds consisting of numerous individual interviews. Because the competition will be very strong, intense preparation in this phase of the recruiting process will be crucial.

Is working in private equity worth it?

A career in private equity can be highly rewarding, both financially and personally. Private equity managers often take a great deal of satisfaction from successfully guiding their portfolio companies to new high levels of profitability.

Is private equity prestigious?

Private equity is the tier 1 among finance careers, so there are few exit opportunities more prestigious than private equity.

What is LBO analysis?

LBO analysis is similar to a DCF analysis. In LBO analysis one focuses on the IRR, projected cash flows and the ability to pay debt and interest payments. The concept of a leveraged buyout is very simple: Buy a company –> Fix it up –> Sell it. Usually, the entire plan is, a private equity firm targets a company, buys it, fixes it up, pays down the debt, and then sells it for large profits. In this Private Equity course on LBO modeling, we take the cash flow projections along with IRR calculations of Seimens

What is a PE course?

This course is designed for students and professionals who want to master private equity skills. Here you will learn about PE Structure, Private Equity Strategies, Private Equity Fund, Private Equity Modeling, LBO Modeling with case studies, Term Sheet, Excel, Accounting, Ratio Analysis, Valuations, Financial Modeling Discounted Cash Flows

What is private equity training?

Private Equity is all about learning hard financial skills to analyze and value businesses. In this private equity training, you will learn the following –

Why do companies invest in private equity?

Private equity usually has the demand for a long term investment in order to allow distress turnover or to meet the liquid needs of the company , for example, the IPO or selling to a public company. Hence this investment usually includes; institutional investors or accredited investors who can invest huge sums of money for a longer duration.

When did private equity boom?

Buyouts and private equity boomed in the year 2005 to 2007 where major buyouts were recorded. And even now private equity continues to be a huge private asset class and firms with private equity who have billions of dollars in capital that is committed are planning to position their capital in new and different types of transactions.

Is private equity a public exchange?

However private equity is not registered or quoted on a public exchange. These funds are a direct investment in the private company or doing a buyout of the public company which converts into delisting of the equity of a public company.

Is private equity hard?

If you have an interest in the equity market or more precisely if you are interested in the private equity where money-making is an art it will defiantly not be difficult. And moreover, our private equity course includes explanations and lectures in HD videos along with living examples to make learning simple.

What is a checkbox in an on cycle process?

In on-cycle processes, they tend to be a “check the checkbox” item: Interviewers use them to verify that you can model, but you won’t stand out by using fancy Excel tricks.

What are the topics of IB interviews?

The topics here are similar to the ones in IB interviews: Accounting, equity value and enterprise value, valuation/DCF, merger models, and LBO models.

Why are case studies the most common in on cycle interviews?

These case studies are the most common in on-cycle interviews because PE firms want to finish quickly.

What is the #1 mistake in PE interviews?

The #1 mistake in PE interviews is to focus excessively on modeling tests and technical questions and neglect your deal discussions.

What is the key challenge in off cycle recruiting?

If you’re at a smaller bank, and you’re going through off-cycle recruiting, the key challenge will be demonstrating your ability to lead, manage, and close deals.

What is the challenge of being an analyst at a large bank in New York?

If you’re an Analyst at a large bank in New York, and you’re going through on-cycle recruiting, the key challenge will be spinning your pitches and early-stage deals into sounding like actual deals.

How long does it take to complete a case study?

You might have 3-7 days to complete this type of case study and present your findings.

Where Do You Get a Private Equity Job?

This post is part of a short series that covers the who / when / where / how of landing a private equity job. This post is about the “ where ” of PE recruiting. You can find all the posts in this series here. Read more →

When Should You Start Looking for a Private Equity Job?

This post is part of a short series that covers the who / when / where / how of landing a private equity job. This post is about the “ when ” of PE recruiting. You can find all the posts in this series here. Read more →

What Do Private Equity Investors Actually Do?

There are four basic things private equity investors do to earn money.

How much does a private equity associate make?

The stakes are high, because compensation for private equity associate positions can be very lucrative — often ranging from $200,000 – $350,000 or more annually . That’s 4 – 7x the national household median income by the time you are 24 or 25 years old.

What are the big PE funds?

Big mega-cap PE funds like Blackstone, Carlyle, and TPG have hiring needs that are pretty stable and predictable, and the recruiting pools for talent are well-known. Consequently, they have a fairly standardized process not unlike the recruiting process you would find in bulge-bracket investment banks or brand-name consulting firms — it’s just at an order of magnitude smaller scale.

How long does it take to develop an instinct?

If you follow along and practice a few times on your own afterward, you’ll soon develop an instinct within 5 minutes of looking at a deal / company.

How much do banking analysts make?

The stakes are high, because salaries for entry-level analysts and associates in banking and finance are lucrative — often $110,000 – $230,000 or more annually when combining base and bonus. That’s 2 – 5x the national household median income coming straight out of college or grad school.

Example Why Private Equity Answer

Note: the answer below is from the perspective of an investment banking analyst or associate.

Different Paths to Private Equity

While the examples in this article have focused on investment banking (the most common path to private equity), there are other paths that should be mentioned as well.

Additional Resources

Thank you for reading CFI’s guide to answering one of the toughest private equity interview questions – Why private equity? To learn more and to ensure you’re well prepared, check out these additional resources:

How to answer private equity interview questions?

To answer this private equity interview question, you need to be thorough with the current events in your industry. Read up everything you can. And ask your connections – “what’s new in the market?” and soak up knowledge as much as you can. A time was there when the industry was ready for a $100 billion LBO deal. But recently, this is very infrequent events. You can pick something you have worked on before (if you ever worked on a mega-cap fund) and explain why that isn’t a possibility as of now.

What is a private equity analyst?

Private Equity Analyst A private equity analyst is an analyst who looks for undervalued companies for a private equity investor to buy, take them private and earn profits. The companies are primarily unlisted, and the risk is higher. read more. Private Equity Online Training.

What does 25% increase on principal mean?

A 25% increase on the principal means a 20% increase on the principal + interest.

What are some examples of private equity?

As a private equity professional, you should be able to have a few solid examples with you where you have helped your previous/current company find value. It can be creating operational efficiencies which saved cost on M&A deal, or it can be your research which helped the company launched new services/product line.

How to protect downside of Temasek?

The best way to protect the downside is to go for a structured deal, even at the later stage of the investment. For example, in 2010, Temasek invested into GMR Energy through a structured paper which needs to be compulsorily converted into equity. Temasek invested $200 million in GMR through its fully owned subsidiary Claymore Investments.

How to research a company before interview?

To answer this question, all you need to do is to research the company before you ever go for the interview. Look at their website. Find out about their investments. And browse through every possible news about the firm. And then analyze what you like and what you didn’t like.

What is profit margin?

Profit Margin Profit Margin is a metric that the management, financial analysts, & investors use to measure the profitability of a business relative to its sales.

About this Course

The course deals with the analysis of the private equity and venture capital business.

Offered by

Our ambition is to develop students' potential and foster knowledge in Business, Economics and Law through innovative learning and research activities in a multicultural environment. Bocconi is a community that constantly innovates teaching and learning technologies and that strongly believes in the power of life-long learning and networking.

Company Valuation And Deal Making In Private Equity Settings

In this section you can find the final graded quiz covering all topics seen so far.

How is LBO financing structured?

The typical transaction structure in an LBO is financed using a high percentage of borrowed funds, with a relatively small equity contribution from the private equity sponsor. As the principal of the debt is paid down throughout the holding period, the sponsor will be able to realize greater returns upon exiting the investment.

What test is used in private equity interviews?

Unlike investment banking interviews where you’ll likely get a lot of technical interview questions, private equity interviews will stress the Paper LBO and LBO Modeling Test to confirm you’ve got the technicals down.

What is LBO in finance?

An LBO is the acquisition of a company, either privately held or publicly traded, where a significant amount of the purchase price is funded using debt. The remaining portion is funded with equity contributed by the financial sponsor and in some cases, equity rolled over by the company’s existing management team.

How to increase EBITDA?

Growth in EBITDA can be achieved by making operational improvements to the business’s margin profile (e.g. cost-cutting, raising prices), implementing new growth strategies to increase revenue, and making accretive add-on acquisitions.

Why is it beneficial for a sponsor to contribute minimal equity?

The logic behind why it is beneficial for sponsors to contribute minimal equity is due to debt having a lower cost of capital than equity.

Why is debt lower?

One of the reasons the cost of debt is lower is because debt is higher up on the capital structure – as well as the interest expense associated with the debt being tax-deductible, which creates an advantageous “tax shield”. Thus, the increased leverage enables the firm to reach its returns threshold easier.

How much of a customer's revenue should be accounted for?

As a general rule of thumb, no single customer should account for more than ~5-10% of total revenue as the risk of losing that key customer due to unforeseen circumstances or the customer’s refusal to continue doing business with them (i.e. decides to not renew their contract) presents a significant risk.