Secondaries Advisory Case Study

For a secondaries advisory case study with top-tier firms like Evercore, PJT, or Jefferies, here's what you should focus on based on the most helpful WSO content:

1. LBO Modeling

• While secondaries advisory isn't purely LBO-focused, having a strong grasp of LBO mechanics is crucial. Many case studies in this space incorporate LBO modeling to evaluate potential returns, leverage, and deal structures.
• Preparation Tips:
  • Practice building a 3-statement LBO model from scratch under time constraints.
  • Understand key drivers like EBITDA growth, multiple expansion, leverage, and debt paydown.
  • Be ready to explain your assumptions and rationale for projections.

2. Secondaries-Specific Knowledge

• Secondaries advisory often involves analyzing portfolios of private equity fund interests. Be prepared to:
  • Evaluate fund performance metrics (e.g., IRR, MOIC).
  • Assess NAV (Net Asset Value) and discount rates.
  • Understand GP-led transactions, continuation funds, and LP stake sales.
• Preparation Tips:
  • Familiarize yourself with secondaries market trends and key players.
  • Review how to value fund portfolios and assess liquidity options.

3. Case Study Structure

• Case studies may involve:
  • Analyzing a portfolio of fund interests or a single asset.
  • Building a simplified model to assess potential returns.
  • Preparing a short presentation or memo summarizing your findings.
• Preparation Tips:
  • Practice summarizing your analysis in a clear, concise format.
  • Be ready to discuss qualitative factors like market trends, fund strategy, and GP reputation.

4. Technical and Conceptual Questions

• Expect questions on:
  • Private equity fund structures and secondaries market dynamics.
  • Valuation techniques (DCF, comparables, precedent transactions).
  • Key metrics like DPI, TVPI, and RVPI.
• Preparation Tips:
  • Brush up on private equity and secondaries-specific terminology.
  • Review valuation methodologies and their application to fund interests.

5. Behavioral and Fit Questions

• These firms will also assess your interest in secondaries advisory and cultural fit. Be prepared to answer:
  • Why secondaries advisory?
  • How do you approach complex financial problems?
  • Examples of teamwork and leadership.

6. Resources to Use

• Books/Guides: Rosenbaum & Pearl's Investment Banking (for LBOs) and primers on secondaries markets.
• WSO Threads: Search for secondaries-specific discussions and case study tips.
• Practice Models: Use templates to practice LBOs and portfolio valuations.

By focusing on these areas, you'll be well-prepared to tackle the case study and impress the team. Good luck, and remember—confidence and clarity in your analysis will set you apart!

Sources: Learning recs for secondaries, Q&A: PE Secondaries Principal, Q&A: Former Strategy& associate, How to prepare for an assessment center?, Private Equity Recruiting Process (From Banking)