Private Equity Interview Case Study Pdf Exclusive
The private equity (PE) case study is a high-stakes simulation used to evaluate your analytical, investing, and communication skills. In these interviews, firms assess your ability to process data, build financial models, and—most importantly—formulate a clear investment thesis. Common Case Study Formats
2. The Mini-Model (3 Hours)
The most common format. You receive a PDF with 5-10 pages of financials (P&L, Balance Sheet, Cash Flow) and a few operational footnotes. private equity interview case study pdf
For associates and investment banking analysts transitioning into PE, the request is almost universal: “Complete this 90-minute case study and send us a PDF of your output.” The private equity (PE) case study is a
- Avg Debt = ($300 + $X)/2. Let's approximate.
- Interest yr1: $300 * 6% = $18. Tax shield saves 20% → Net interest cost = $14.4.
- FCF yr1: EBITDA $52.5 - Net Interest $14.4 = $38.1 * 0.8 tax? Wait—In a paper LBO, use: FCF = (EBITDA - Interest - Taxes) - CapEx (if no CapEx, ignore). Actually easier: FCF = EBITDA - Interest - Tax where Tax = (EBITDA - Interest - D&A)*TaxRate. For paper LBO, many assume FCF = EBITDA * 60% to be safe. Let’s assume 40% of EBITDA is debt capacity.
- Pro shortcut: Assume 50% of EBITDA goes to debt paydown annually.
- Year 1 paydown: $26
- Year 2: $27
- Year 3: $29
- Year 4: $30
- Total paydown ~$112. Ending Debt = $300 - $112 = $188.
Alpine Gear was a heritage outdoor apparel brand. Founded in the 1980s, it had fallen on hard times. The case study was dense—thirty pages of financials, market research, and fragmented data points. Avg Debt = ($300 + $X)/2
The file was labeled PE_Interview_Case_Study_V4.pdf, but to Elias, it felt less like a document and more like a gauntlet thrown down at his feet.
- Task: Build a complex model with debt schedules, PIK interest, and Mgmt. options.
- PDF Content: Full industry analysis, historicals, and management projections.
includes mock cases with interviewer prompts and quantitative answers. Quick Review Guides : Sites like host various community-uploaded PE Interview Q&A Guides that cover technical concepts like IRR and downside risk. The 4 Major Case Study Types Private Equity Case Interview Guide Frameworks and Examples
