How to prepare for PE interview in time crunch?

To prepare for your MM PE internship interview on short notice, here’s a focused plan based on the most helpful WSO content:

1. Prioritize LBO Modeling Basics

• Paper LBOs: These are common for MM firms and are often used to test your understanding of the fundamentals. Focus on being able to complete a paper LBO quickly and accurately.
• Key Metrics: Understand EBITDA, CAPEX, changes in working capital, and IRR calculations. These are critical for any LBO discussion.
• Resources: Use the WSO Prep Pack and BIWS LBO guides to get a solid grasp of these concepts. If you have access to the WSO pdf on LBOs, it’s highly recommended.

2. Brush Up on Core Technicals

• Accounting and Finance Fundamentals: Since your technicals are limited, focus on mastering the basics like the three financial statements, how they link, and key valuation methods (DCF, Comps).
• Quick Resources: The M&I 400 Technical Guide and BIWS Accounting Guide are excellent for rapid learning. If you can, also review the WSO technical guides.

3. Behavioral and Fit Questions

• Why Private Equity?: Have a clear and compelling answer for why you’re interested in PE. Highlight your interest in investing, working with portfolio companies, and learning about value creation.
• Walk Me Through Your Resume: Prepare a concise, 70-second story that explains your background, why you transferred, and how it aligns with your interest in PE.
• Why MM PE?: Be ready to explain why you’re interested in middle-market firms specifically (e.g., exposure to smaller deals, more hands-on experience).

4. Case Studies and Investment Questions

• Prepare for Informal Technicals: MM firms may ask questions like “What’s an industry you find attractive?” or “Tell me about a good LBO candidate.” Be ready to discuss industries or companies you find interesting and why.
• Investment Thesis: Practice summarizing a deal or investment idea in 1-2 slides. Focus on the investment thesis, risks, and mitigants.

5. Time Management

• Focus on High-Yield Areas: Given your time crunch, prioritize LBO basics, behavioral questions, and a quick review of accounting fundamentals. Skip advanced modeling unless you know it will be tested.
• Leverage Your Network: Ask mentors or friends who’ve gone through PE interviews for any practice materials or advice. They might have paper LBOs or case studies you can use.

6. Adjusting for Your Background

• Since you’re a second-year college student, firms may adjust their expectations. However, don’t assume they’ll go easy on technicals. Be over-prepared, as being technically sound is often a baseline requirement.

Final Tips

• Mock Interviews: Practice with a friend or mentor to refine your answers and build confidence.
• Stay Calm: If you don’t know an answer, focus on your thought process and approach to solving the problem.

Good luck with your interview!

Sources: Private Equity Recruiting Walkthrough – My Experience, Private Equity Recruiting Walkthrough – My Experience, Guide to LA IB Scene (2023 Edition), Q&A - Post-MBA VP, How do the top students at Wharton and Ivey do it?