Based on the most helpful WSO content, a model test in a finance interview typically involves building a financial model under time constraints. This could be an LBO, valuation model, or other types of financial models. The purpose is to assess your technical skills, attention to detail, and ability to work under pressure.

For a 1-hour model test, you're likely to be given a relatively straightforward task, given the time constraint. This could be a simple valuation model or an update to an existing model.

After you complete the model, the PM will review your work. This is to assess the accuracy of your model, your assumptions, and your overall approach.

The 45-minute discussion is likely to be a deep dive into your model. You should be prepared to explain your assumptions, your approach, and any challenges you faced. The PM might also ask you to justify your model and the results it produced.

Remember, the PM is not just assessing your technical skills, but also your communication skills, your thought process, and your ability to defend your work. So, be prepared to explain and defend your model in a clear and concise manner.

Remember, practice makes perfect. The more you practice modeling under time constraints, the more comfortable you'll be in the actual test. Good luck!

Sources: How would you approach a 4 hour case study?, 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, Ask me anything - MM PE Associate, 1 year in, Q&A: London REPE MF Associate, REPE Modeling Test Example

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

could literally be anything - every PM has their own preference, and thats even at the MMs which hire more frequently and have more "standardized processes" if you can even call it that. 

1hr is a short amount of time to do the classic "here is a stack of 10ks/qs, transcripts, comp table, go build a model and tell us if its a long or short". Thats usually 3hrs. But maybe this guy is a psycho.  

1hr sounds more like, here is an existing model, make some projections and tell us your thoughts (totally guessing here).  But again, truly impossible to predict 

 

Qui magni praesentium sit. Et fugiat eos sequi placeat consequatur fuga. Ea maxime enim quam. Magnam accusamus nemo et earum rerum id nesciunt ad. Iure voluptatum enim tempora sed. Incidunt magni cumque dolores pariatur tenetur esse.

Voluptatem voluptatem accusantium rem consequatur. Officiis assumenda eaque eius quo quidem numquam blanditiis. Deleniti ut quo similique velit. Non hic doloribus aliquid et.

Sit et natus quia doloribus quia. Dicta et a quia voluptas expedita sequi. Molestiae quidem unde neque iste numquam quo quia.

Rerum occaecati sapiente reiciendis laborum consequuntur sed dolorem. Cupiditate nulla aliquam consequatur ut. Quo voluptatum sunt veniam est corrupti. Veritatis exercitationem accusamus sed non laborum incidunt autem et. Qui laborum ea consequatur vitae possimus sequi. Recusandae tempora illo dignissimos.

Career Advancement Opportunities

April 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

April 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

April 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

April 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (250) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”