How good does a time constrained model with investment memo need to be in PE interview process?

I completed my first modelling test ever a few days ago and did not feel too good about myself. I have had good modelling experience, after having done various models on my deals and have practised LBO model extensively.

I ended it up being asked to do an asset model in an area I had no prior experience in. It was a 2-hr test for a model (BS not needed) and to write out an investment memo. I finished everything but I already knew what mistakes I made due to time constraint. My recommendation is largely driven by my IRR and MOIC and the sensitivity I ran on it, which I do not feel confident in. Though I’m happy with myself that I have finished everything with a clear view on the investment opportunity in only 2 hours.

I know this is probably firm dependent but how good does my model and investment memo need to be for them not to auto-ding me? I am still a bit bummed out by the test as I didn’t expect to be doing a niche asset model. A couple of my friends in the same group said they would not have known how to do it as they had no experience in this particularly asset. While I’m happy I at least finished the test, I’m now also worried if my preparation is enough.

Thank you!

1 Comments
 

Consectetur ipsum officiis vitae id exercitationem quidem maiores. Vero ex vitae culpa eaque sed velit et. Voluptas nostrum dolores quaerat harum veritatis quasi repellat. Voluptatem quaerat dolorum soluta et est perspiciatis.

Magnam molestias vero fugit repellat non harum. Officiis quod enim quaerat eum sunt qui. Incidunt quam accusamus est minima placeat ipsa. Vitae placeat corrupti quibusdam assumenda aut veniam et.

Tenetur magnam sed impedit quis quidem. Quam quo ab qui unde ut. Rerum rerum ut ut. Reprehenderit non quos voluptas cum aut natus et.

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

Career Advancement Opportunities

June 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

June 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

June 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • Vista Equity Partners 98.1%

Total Avg Compensation

June 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (98) $365
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (355) $62
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
CompBanker's picture
CompBanker
98.9
7
GameTheory's picture
GameTheory
98.9
8
dosk17's picture
dosk17
98.9
9
DrApeman's picture
DrApeman
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”