Let's be blunt. Private equity interviews are not conversations. They're stress tests designed to filter out 95% of candidates before lunch. I've sat on both sides of the table, and here's what actually matters.
What they're really asking: Do you understand what PE actually is? Are you running away from banking or toward investing?
Bad answer: I want to work on deals and learn about businesses. (Generic, could apply to any finance job.)
Good answer: Specific reference to owning outcomes, working with management teams, and the investment judgment aspect. Mention a deal the firm did that you admire.
Red flag: Generic praise about track record or culture.
What works: Reference specific portfolio companies, investment thesis, or recent deals. Show you understand their strategy.
Not a request for a monologue. They want to hear Sources and Uses, Income Statement projections, Debt Schedule, and Returns analysis.
Income Statement: Operating income down 0, taxes down .50, net income down .50
Cash Flow Statement: Net income down .50, add back 0 depreciation = cash up .50
Balance Sheet: PP&E down 0, cash up .50, retained earnings down .50
Structure your answer: Business overview, Investment thesis, Risks, Returns, Verdict.
Stable cash flows. Low cyclicality. Asset-light. Strong management. Clear value creation levers.
Have a prepared answer with tailwinds, fragmentation, recurring revenue, and example targets.
PE interviews test three things: technical fluency, investment judgment, and culture fit. Most candidates have one or two. The ones who get offers have all three.
Want more preparation resources? See our Wall Street Prep Review and complete How to Get Into Private Equity guide.
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PIPEs are private investments made in public companies, with no shares offered on the open market. The recent SPAC boom saw many of these deals making headlines but PIPEs have been a mainstay in private equity for years. Private equity firms use this method opportunistically to invest in public companies, typically taking non-controlling stakes. Unlike
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