How to prep for PE interviews from MBB?
What is the best way to prep for PE interviews coming from MBB? Have a few intros with consultant-friendly firms (was told by HHs that the interviews are consulting-style case studies and paper LBOs - no 3 statement models) and am curious if it would be worth it to run through Peak Frameworks, or if that is not necessary for the consultant-friendly interviews given that the course seems pretty focused on modeling.
Anyone make the jump from MBB and able to weigh in?
To prep for PE interviews coming from MBB, here’s what you need to know based on the most helpful WSO content:
Focus on Consulting-Style Case Studies and Paper LBOs:
Since consultant-friendly firms often emphasize consulting-style case studies and paper LBOs, prioritize honing these skills. You don’t need to master complex 3-statement models for these interviews, but you should be comfortable with the basics of LBO mechanics and how to approach high-level business analysis.
Leverage Your MBB Experience:
Be prepared to explain the work you’ve done at MBB, especially around operational improvements, strategic designs, or any financial analysis. PE firms value your ability to analyze businesses and drive value creation, so articulate how your consulting experience translates to private equity.
Practice Case Interviews:
Case interviews are a common component of PE interviews for consultants. Practice structuring your thoughts, analyzing business problems, and presenting solutions clearly. This will help you excel in the consulting-style case studies.
Paper LBO Preparation:
While you don’t need to dive deep into advanced modeling, you should understand the fundamentals of LBOs. Practice paper LBOs to ensure you can quickly calculate IRRs, equity multiples, and basic deal structures. This is often sufficient for consultant-friendly firms.
Resources to Consider:
Networking and Positioning:
If you’re targeting consultant-friendly firms, emphasize your strategic thinking, problem-solving skills, and ability to work with management teams. Networking with people in these firms can also give you a better sense of what to expect in interviews.
By focusing on these areas, you’ll be well-prepared to tackle PE interviews as an MBB consultant. Good luck!
Sources: Q&A: MBB to MM PE, Basic Questions About PE Recruiting Answered, Q&A 2.0: 3rd Year BA/A/AC At MBB Going To UMM/MF This Summer, Private Equity Recruiting Walkthrough – My Experience, How do the top students at Wharton and Ivey do it?
Have not landed a PE gig yet, but have spoken candidly with mentors at several of the firms you are referencing about these topics, and here is a summary of their answers:
a. Just do PF. It's not that hard to learn, it is not that expensive (especially if you actually get the job) and it is the best resource even for non-technical prep. Even if you are not asked to do a super technical 3 statement LBO, there will be other consulting candidates who can build those models in their sleep, and that will give them a sizeable advantage in their understanding of returns drivers and the PE business model over a consultant who has not done PF.
b. For intro calls, you'll probably focus more on behaviorals, which aren't hard but require some thought and I would write answers to them in a word doc. I have been asked:
c. For the actual intros, if you don't get PF, at minimum you should do live mock case style interviews where you have to build a paper LBO to get a rough sense of the returns profile. Courses are still the best way to learn paper LBOs.
d. Also prepare for deal / case walkthroughs and general finance technicals - there are some other threads on this site that discuss these at a high level and feel free to PM if you want my thoughts.
Also direct perspective of PE associate I talkted to: take anything headhunters tell you with a grain of salt - regardless of what they tell you, do what will make you the most prepared candidate possible.
Have PF - feel free to p.m, can share
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