Different private equity firms have different criteria for their ‘perfect candidate.’ However, as they all provide almost the same services to their clients, there are some common questions that they may ask you during the interview. With this guide to interview questions for private equity, you can learn about those questions and ace the meeting. So let’s get started.
-
What do you know about the firm? Why do you want to work here?
This is the most common question that you might come across during an interview, irrespective of your domains. But most people still fail to answer it correctly. In the private equity interview scenario, giving generic answers is not enough. It would be best if you point out some of the most exciting factors about that specific firm. You can also count the things that make the firm stand out from its competitors. For this, you can go through the company’s website and check their details out.
-
What is the reason behind your interest in private equity?
The only thing people do wrong here is that they blabber out their memorized answers. As interviewers are experienced people, they instantly know about it. To make it more natural, try to analyze the question first and then answer. From the previous questions (if there are any), you might know what is making the interviewer happy. So you can improvise your answer and can also relate it to some of the previously discussed topics.
-
What were your roles in your previous company?
If you are a fresher, you can skip this one from your list of ‘private equity questions and answers for the interview.’ But if you are an experienced person, then you need to emphasize this. The interviewer is not asking you about your previous job description, and you should know that. They are asking you how did you ‘benefit’ your former firm. Hence, it would help if you relate your answer to that.
-
Choose one financial statement and give a reason for choosing it.
This is the most common question in every list of private equity interview questions and answers. That means it is often asked, so you need to prepare for it. Most people tend to select the income statement due to the accrual accounting method, and that is where they do wrong. The correct answer to this is the cash flow statement. As without it, nothing else can be analyzed.
-
What are the rights and wrongs of our company?
Another commonly asked question, but this is a tricky one. Like the first question mentioned above, you need to analyze the company for this one. Even if you feel like you found some problematic aspects of the firm, you should start your statement with “there are no wrongs, but some sections can be improved.” The same goes for the rights, as you do not need to overpraise the company. That can go in a negative direction for you.
Conclusion
Along with preparing these interview questions and answers for private equity, you will need to brush up on your skills and be confident. You can keep in mind that you already have that job so that you will remain calm and confident.
