Sep 12, 2024
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Based on the most helpful WSO content, here's what you need to know about psychometric and technical tests in the context of investment banking and private equity:

  1. Psychometric Tests:

    • These tests are often used as a preliminary recruitment step to filter candidates.
    • They typically assess cognitive and emotional traits, similar to the Pymetrics tests used by firms like Credit Suisse.
    • Focus on both speed and accuracy when completing these tests.
    • There are no right or wrong answers, but there are favorable profiles that align with the traits of top performers in the company.
  2. Technical Tests:

    • These can include more involved accounting questions, such as:
      • Full Purchase Price Allocation (PPA) walkthroughs.
      • Valuation and structuring of earnouts.
      • Capitalizing leases.
      • Adjusting for unfunded pension liabilities.
      • Accretion/dilution questions with multiple sources of funds.
    • Modeling tests may also be part of the technical assessment.
  3. Similar Assessments:

    • The psychometric tests are similar to those used by Credit Suisse and JP Morgan, which use AI to predict job performance based on cognitive and emotional traits.
    • Technical assessments can be similar to those described for lateral associate interviews, which involve detailed accounting and financial modeling questions.

For more detailed preparation, consider reviewing resources like the Investment Banking Interview Guide and practicing with psychometric test simulations.

Sources: Credit Suisse Pymetrics Test, JP Morgan Ending Campus Visits, Pymetrics... What the fuck??, Lateral Associate Interviews - What do bankers mean when they say they're "more technical"?, London recruitment-can't understand how it works.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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