Houlihan Lokey FSG First Round

For your first-round interview with Houlihan Lokey's Financial Sponsors Group (FSG), here’s what you need to know based on the most helpful WSO content:

1. Expect a Mix of Behavioral and Technical Questions

• Behavioral Questions: Be prepared to discuss your background, why you’re interested in investment banking, and specifically why Houlihan Lokey and the FSG team. Highlight your teamwork skills, work ethic, and ability to handle a fast-paced environment.
  • Example: "Why do you want to work in FSG?" or "Tell me about a time you worked on a challenging team project."
• Technical Questions: These may include financial statement analysis, valuation methods (DCF, Comps, LBO), and market-related questions. FSG roles often involve understanding private equity and hedge fund clients, so brush up on how these firms operate.

2. Know the Role of FSG

• FSG focuses on advising private equity firms, hedge funds, and other financial sponsors. Be ready to discuss how you can add value in this niche, such as understanding leveraged buyouts (LBOs) and capital structures.
• Example Question: "What do you know about the financial sponsors space?" or "How would you approach analyzing a private equity portfolio company?"

3. Prepare for Technical Depth

• Valuation Techniques: Be ready to explain DCF, precedent transactions, and comparable company analysis. You might also get questions on LBO modeling, as FSG deals heavily with leveraged transactions.
  • Example: "Walk me through a DCF" or "What are the key drivers of an LBO model?"
• Accounting Knowledge: Expect questions on financial statements and how they link together.
  • Example: "If depreciation increases by $10, how does it affect the three financial statements?"

4. Behavioral Fit is Key

• Houlihan Lokey values candidates who are humble, hardworking, and team-oriented. Show that you’re eager to learn and can handle the steep learning curve.
  • Example: "What motivates you to work in investment banking?" or "How do you handle long hours and tight deadlines?"

5. Research the Firm and Team

• Mention specific aspects of Houlihan Lokey that appeal to you, such as their strong reputation in middle-market advisory or their collaborative culture. If you’ve networked with anyone from the firm, bring that up.
  • Example: "I’ve spoken with Name from the FSG team, and I’m impressed by the group’s focus on private equity clients and the exposure to complex transactions."

6. Practice Market Awareness

• Be prepared to discuss recent deals in the financial sponsors space or broader market trends. This shows you’re engaged and knowledgeable.
  • Example: "Can you discuss a recent deal in the financial sponsors space that interested you?"

7. General Tips

• Be Concise: Keep your answers clear and to the point. Avoid rambling.
• Stay Professional: Dress in business formal and ensure your setup (if virtual) is distraction-free.
• Ask Thoughtful Questions: At the end of the interview, ask about the team’s culture, recent deals, or what makes someone successful in the FSG group.

Good luck! Crush it tomorrow!

Sources: An ex-Goldman Sachs insider’s 10 tips on how to sail through investment banking interviews, Life In The Financial Sponsors Group, 8 Tips for Your Big 4 Interview