Don’t know how to model

I’m a third year analyst. I was in a group for a year and a half that didn’t have too many deals so I didn’t get a ton of modeling experience. I lateraled to a product group that doesn’t model much either. I’m at a loss for where to begin learning because I’m trying to recruit for PE but these case studies/model tests keep tripping me up. Am I doomed or is there still a way to learn?? Should I just forget about PE? I can’t stay in IB for much longer but I want to stay in finance

8 Comments
 

You're not doomed—far from it! Based on the most helpful WSO content, here's a roadmap to get you back on track and ready for Private Equity recruiting:

1. Leverage Financial Modeling Resources

  • WSO offers 9 free financial modeling lessons taught by experienced private equity professionals and bulge bracket investment bankers. These lessons cover:
    • Financial statement modeling
    • Discounted Cash Flow (DCF)
    • Mergers & Acquisitions (M&A)
    • Leveraged Buyouts (LBO)
    • Comparable Company Analysis (Comps)
    • Excel modeling techniques
  • Additionally, you can access 27 financial modeling templates in a swipe file to practice hands-on.

2. Focus on LBO Modeling

  • Since LBO modeling is a cornerstone of PE case studies, prioritize mastering this. WSO's resources include LBO-specific training, which is critical for PE interviews.

3. Bootcamps and Structured Learning

  • Consider joining a WSO Virtual Bootcamp. For example:
    • The Private Equity Interview 1-Day Bootcamp is designed to prepare you for PE-specific case studies and interviews.
    • The Financial Modeling & Valuation 2-Day Bootcamp provides intensive training on modeling skills.
  • These bootcamps are led by industry professionals and are tailored to help you build confidence quickly.

4. Practice, Practice, Practice

  • Use the templates and lessons to build models from scratch. Start with simpler models like 3-statement models and DCFs, then progress to more complex ones like M&A and LBOs.
  • Repetition is key—set aside time daily or weekly to practice.

5. Mock Interviews and Case Studies

  • WSO offers mock interviews with professionals who can simulate PE case studies and provide feedback. This will help you identify weak spots and improve.

6. Don’t Give Up on PE

  • Many analysts have been in your shoes and successfully transitioned to PE. The key is to show progress in your modeling skills and demonstrate a strong understanding of the PE investment process during interviews.

7. Alternative Paths in Finance

  • If PE doesn’t work out, there are other exciting areas in finance like corporate development, venture capital, or even hedge funds. These roles often value analytical skills and deal experience, even if your modeling background isn’t perfect.

With the right resources and consistent effort, you can absolutely catch up and succeed in PE recruiting. Start with the WSO lessons and bootcamps—they’re designed for exactly this kind of situation. Keep pushing forward!

Sources: What would it take to pull you out of PE and into ops?, PE funds and private jets?, How to Spend the Next Year in IB to Prepare for PE, Struggling PE Analyst, Useful certifications to get for IB/PE

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

PF up to level 3 and maybe 4 is pretty much all you need for most MM interviews (can probably get away with 3; didn't get anything as hard as level 4 or 5 in anything outside of ~10Bn+ fund size funds). The harder thing is really developing the business sense/what to write up for case studies imo, and I think a lot of that comes from getting reps in deals and/or making things like M&A ideas pitches. 

 

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