Snr associate in a hybrid value/structured equity fund. Pretty small: ~$3bn AUM. Thinking of looking around or trying to go somewhere bigger but dont want to spend my nights brushing up on my modeling skills. Any thoughts/advice appreciated.
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Based on the most helpful WSO content, the need for modeling tests typically diminishes as you move up the ranks in finance. For higher-level roles, such as senior associate or above, it's often assumed that you already possess the technical skills required, and your responsibilities shift more towards strategy, deal structuring, and client interaction rather than hands-on modeling. However, this can vary depending on the firm and the specific role.
In smaller funds like your current ~$3bn AUM hybrid value/structured equity fund, the expectation for technical proficiency might still exist, especially if the team is lean and everyone is expected to contribute to modeling. If you're considering moving to a larger firm, the likelihood of a modeling test during the interview process depends on the role you're targeting. For senior associate or VP-level positions, it's less common but not unheard of, especially if the role involves significant technical work.
If you're concerned about brushing up on your modeling skills, it might be worth doing a quick refresher using resources like the WSO Elite Modeling Package or similar tools. This can help you feel confident without requiring extensive preparation.
Sources: Case Studies & Modeling Tests: How Exactly Are They Administered?, https://www.wallstreetoasis.com/forum/investment-banking/why-do-we-even-model-its-pointless?customgpt=1, https://www.wallstreetoasis.com/forum/investment-banking/modelling-has-to-be-the-biggest-misnomer-in-this-industry?customgpt=1, Modeling at work vs modeling tests
I would say senior associate you definitely should expect a model test. For VP roles my experience wasn't that there was a specific model test but my case studies were creating an IC memo based on a CIM so the expectation was to include a model output.
Currently a 2nd year senior associate recruiting (3.5 years in PE) and have been in a few processes and none have required a model test. Mostly looking at sub $2M funds though. Almost all have a case study though or investment thesis project. I would say it very much depends on the fund size but like you, I would probably balk at the idea of having to do another modeling test at this point. Would think firms should care much more about deals reps, exposure, investment acumen, etc. once you’re a few years into PE which has proven true in the interviews I’ve had so far.
Good to know - thank you. I've been in a few processes, all of which have also required case studies. Obviously need to create a model but feels like free work, and probably safe to assume we're all over-achievers so devote more time to it than I should. I recently moved geographies (overseas) and seems like par for the course here are timed modelling tests in exam conditions. Balk at that
Think biggest issue with SA and VP recruiting is that the employers at the top shops are barely hiring anybody and have way too many canidates lining-up. Associate recruiting at least has more people getting the roles, so they are a bit more standarized. There ends up being 10 rounds or having to meet the entire team in some of the really rough processes, where you can get eliminated in any stage.
Senior Associate going from a UMM to another one for a career track; I had no model test per-say, but have had cases which are effectively testing for model tests + business accumen. No real need for 3 statement bulids for these for the most part; just get to a working model that is reasonable. It's all about justifying assumptions at the end of the day.
This is helpful - thank you. Mind sharing what the case studies were like? For context, I was in the process at a UMM fund and was given 4 hours to do a model + presentation that had like 8 pages of inputs/assumptions. They emailed it to me, but was probably like 8-10 hours of work. I wasnt prepared and failed. Am just hoping ai gets caught up soon enough that i dont have to worry haha
Usually CIM's + market study + bunch of historical data OR a public co with 10-K's, investor presentations, 10-Q's, etc. ; had to bulid model from scratch in 3-4 hours. Usually have had very short write-ups associated with that over word or PPT, and a much longer debrief session. My way of approaching this was around focusing a lot on buliding a credible operating model and the rest being super basic (i.e. really simple capital structure, no full cash flow statement or full balance sheet reconcilation, unitranche debt, etc). I ended up actually being informed that I am getting the senior associate promote at my fund; so just going to continue here.
Think the top funds are pretty unreasonable with their demands tbh; I am an associate 2 at a tech-specalized large UMM and we rarely hire outsiders as SA or VP (zero in some years); so bar is much higher for laterals. It's very hard to find lateral roles across the spectrum; know a lot of people going from top UMM / MF's to LMM's if they don't get the promote or are in 2 and out programs.
Ran through a bunch of senior associate / VP interviews while I was in MBA.
Agree with most that you don't need a modeling test for VP although some shop here and there will require a 2-hour standard modeling test on top of a case study (blows I know, this is UMM)
Most common one I received was 48-72 hours to produce 4-5 slides which as others have pointed out inherently will include a model though most didn't ask for the excel for submission
Yeah thats what i got for my job now. I am hearing that other aso laterals are having to do the 2 hour modeling tests. I'd honestly need to brush up and not sure if I could
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