Private Funds Group Interview Prep (Primaries Fundraising) - MM Bank

Based on the most helpful WSO content, here's what you need to know about preparing for an interview with a Private Funds Group at a middle-market bank like Evercore or Lazard:

Interview Preparation:

1. Role Understanding:

   • The Private Funds Group primarily focuses on fundraising rather than direct investing.
   • The role involves distribution and project management, with less emphasis on technical skills compared to traditional investment banking.

2. Technical Skills:

   • While the job is lighter on technical skills, you should still be familiar with accounting and valuation principles.
   • Understanding the structure of a Private Placement Memorandum (PPM) and how to evaluate a General Partner (GP) manager is crucial.
   • Be prepared to discuss the waterfall of Limited Partner (LP) and GP cash flows.

3. Soft Skills:

   • Your soft skills and personality will be tested. Being likable and able to communicate effectively is essential.
   • Practice answering behavioral questions and be ready to discuss your past experiences and how they relate to the role.

4. Interview Questions:

   • Expect questions on your understanding of the fundraising process, including the stages of launching a fund from start to finish.
   • Be prepared for both behavioral and technical questions. Some firms may start with quick technical questions (e.g., LBO theory) and move to more in-depth behavioral questions in later rounds.

Fundraising Market Information:

1. Market Dynamics:

   • The fundraising market can vary significantly based on the type of funds (e.g., private equity, hedge funds, venture capital).
   • Understanding the differences in raising capital for different types of funds is beneficial.

2. Key Players:

   • Familiarize yourself with major players in the fundraising space, including both banks and independent placement agents.
   • Knowing the competitive landscape and the unique value propositions of different firms can be advantageous.

Compensation:

• Compensation in Private Funds Groups can vary, but it generally includes a base salary with potential bonuses based on performance and successful fundraises.
• Researching specific compensation trends for the role at middle-market banks can provide a clearer picture.

Specifics of Launching a Fund:

1. Initial Steps:

   • Identifying potential investors and creating a compelling investment thesis.
   • Developing marketing materials and a PPM.

2. Execution:

   • Managing investor relations and conducting roadshows.
   • Negotiating terms and closing commitments.

3. Post-Launch:

   • Ongoing investor communication and reporting.
   • Managing fund operations and compliance.

By focusing on these areas, you can better prepare for your interview and demonstrate a comprehensive understanding of the Private Funds Group role and the fundraising process. Good luck!

Sources: Private Funds Group (CS/UBS etc), 20 Most Frequently Asked Questions - London Edition, Private Equity Recruiting Walkthrough – My Experience, A Non-Target's Perspective - My MM PE Recruiting Process, A Non-Target's Perspective - My MM PE Recruiting Process