Private equity – the dream of every investment banker. Once you move into this sphere, it is believed that your grandchildren do not need to care more about their future. However, how to ace private equity interview and get a job that everyone else wants to have?

First of all, the easiest way to the private equity firm leads through a connection. Said in other words, it is pretty tough to even get an interview in one of these private equity firms. Therefor if you know anyone who is already there, ask him for recommendation. There’s simply a bunch of applicants for a job and you want to have a special place from the beginning.

Still, private equity firms aren’t really in a need of extensive hire. The fluctuation is pretty low in this sector – once a person is “in there”, he’s most likely to stay for a long time. On your way “in”, our list of private equity interview questions can be very helpful. But before you look at this list, it’s good to realize few things:

 

Things to realize before your interview

  • You can not trick these guys in the private equity interview. It goes about small firms and everyone there is an expert in things they do. So, if you have no real experience needed for this job, or lack the self confidence or the selling skills, it makes no sense to actually try to apply for this job. It’s just a waste of time.
  • There will be many tests and case studies as a part of your private equity interview. You can not get through only with your charisma, knowledge of investment terminology and right answers to private equity interview questions. You actually need to demonstrate that you really know what you do.
  • They do not really need you that much in this company. It’s not like filling a position of a branch director in a new branch, or hiring a teller to the bank that has lack of tellers. Private equity firms are hardly in a need of anyone. Therefor, it’s your goal to create this need. You must simply convince them that the added value you can bring with you to the company is so high that they can not afford to let you go!

 

Okay, now to the list of some commonly used questions. When answering them, do not forget to use as many financial and investment terms as possible. Do not be worried, these guys will know what you are talking about.

 

List of some commonly used private equity interview questions

  • Why do you want to work in private equity?
  • What do you think characterize a good person for this job?
  • What is your attitude to risk?
  • How would you convince a potential customer to become a client?
  • What’s the deal you are proud of the most? Can you describe it in detail?
  • What do you consider to be your position in a team?
  • Try to convince me to make this transaction : (deal details).
  • If I gave you 1 million right now, where would you invest?
  • What do you know about our company?
  • Why did you chose our company?
  • Can you sell me this mobile phone?
  • What do you consider the best investment opportunity for someone with 10 million right now?
  • Give me any reason why should we hire you.

 

These questions will be coupled with some technical questions, where they simply will test if you understand the terminology right (this is often carried out in a form of short written test.) Therefor you should have a look at Investopedia to polish your knowledge in this way a bit. So, that’s it. Good luck in your interview!

PS: You can check also some investment banking interview questions or famous Goldman Sachs interview questions.