Assignment from an MD of a PE fundIB
So I met this MD of a pretty good PE fund yesterday. I tried to convince him that despite having just one Ibankng internship, I am a good PE candidate and have all the passion and drive to do the job of an analyst. I told him about the modeling skills that I learnt during one of the Ibanking classroom training programs and showed him a case study that we did ( an Ibank trying to raise money from a PE fund).
For the case study, most of my sources of information where broker research and industry research reports. He told me that those were not credible and I agreed. I said that ideally you use annual report, talk to the management and extract information, but he said there
are better sources( this fund invests in emerging markets like India where companies do not provide too much information in MD&A). He did not give an answer as to what sources one would use, as now he wants me to do an analysis of 3-4 companies from a PE point of view, just to assess my work. He said that my analysis was more for a trader that a PE player.
My question to you guys is ideally what sources would you use to assess a co. from a PE investment point of view?
What are the ideal steps to analyze whether a Co. is ideal for investment(specifically minorty stake)?
Also should I create a full blown financial model with revenue drivers and all that?