Is PF Level 3 from Scratch adequate for PE recruiting?
So I can comfortably do Paper LBO's / have reps up till level 5 and have been practicing PF LBOs to Level 3; and can do that blind. Will keep getting reps in to build my comfort/speed. Also have a closed deal already and am staffed on my next project at the moment (live deal); looking to recruit for ~summer 2025 start Tech Growth/Buyout roles. Would love insight that you guys have around preparing for off-cycle buyside recruiting.
Based on the most helpful WSO content, it seems that being comfortable with PF LBOs up to Level 3 is indeed a solid foundation for PE recruiting. The user petutor23 shared their experience, stating that for modeling, they used Peak extensively, learned the template first, memorized the overall format, and were then able to do the models from scratch under the time limit. They mentioned that Level 3 was more than enough for them, but for some firms, there might be expectations to understand Level 4/5 concepts. This insight suggests that your current preparation with PF LBOs up to Level 3, combined with your ability to do them "blind," places you in a good position for PE recruiting.
Furthermore, your experience with a closed deal and being staffed on a live deal adds valuable practical experience to your profile, which is highly regarded in the PE space. For off-cycle buyside recruiting, especially for Tech Growth/Buyout roles aiming for a summer 2025 start, continuing to build your comfort and speed with LBO modeling, alongside gaining more live deal experience, will be beneficial. It's also important to keep honing your technical skills and understanding of the specific sectors you're interested in.
In addition to modeling skills, don't forget to prepare for other aspects of the recruiting process, such as casing and technical/behavioral interviews. Utilizing resources like CIMs, old case studies, and technical/behavioral guides, as mentioned by petutor23, can provide a well-rounded preparation.
Remember, the PE recruiting landscape can be highly competitive, and while technical skills are crucial, showcasing your deal experience, sector knowledge, and fit for the specific roles you're targeting will also play a significant role in your success. Keep networking, stay informed about the industry, and consider seeking mentorship or advice from those already in the field to further enhance your preparation.
Sources: Recruiting Experience (Landed MF during On-cycle), 3.5 GPA - Looking to break into PE, PE Lateral Recruiting Advice/Stories/Help?, Recruiting Experience (Landed MF during On-cycle), https://www.wallstreetoasis.com/forum/investment-banking/advice-for-undergrads-going-into-ib-interested-in-pe?customgpt=1
Hoping to add visibility to your thread. Also, how long did it take you to get ramped up to PF L3 without template? Thanks!
Took time to be honest, 4-5 weekends of few hours of work on Saturdays/Sundays; but def was worth it, feel way more comfortable around a LBO/excel generally because of it. Start with reps of paper LBOs, then work up the LBO levels first template then blind, etc
Hey man, I thought the same thing, but in my experience no. I would def get mandatory prepayment, management options and dividend recap down. I’ve seen these in take home model tests and I, also having just really mastered level 3, was shitting bricks at the time. I’d try to do 4.
Also I would practice building a cash flow statement too. PF doesn’t really cover it but every test I’ve had asked for a full three statement.
feel free to PM if you want more detail on the tests, good luck
Thanks, guess I gotta just keep working
Worked through level 4 and was honestly not as bad as I thought; do you think this from scratch would be a good starting point for taking on growth equity interviews? Will for sure need reps to be able to do it blind, but the recap made sense to me luckily lol.
bump
Def not. in a few processes now and I'd make sure I can do Level 5 from scratch in 90 minutes. It's a bit overkill, but every modeling test will have its quirks that take up more time than you think, so better to be super prepared and not get dinged for the easiest step.
Curious if anyone has insight but more on the secondaries side of things. Assume it would be higher level than directs?
I’ve seen a couple and it seems like through level 3 plus knowing mandatory pre-payment and distribution waterfalls is good. So maybe also through level 4 to be safe?
Outside of traditional control investment type of shops the bar will for sure be lower. But being overprepared is always good so when you get to the interview you can cruise through it.
helpful
I interviewed after the PF course, but it definitely wasn't enough. PF LBOs are too basic. WSO LBOs are more challenging and closer to those used in real interviews.
Additionally, I collected models from real interviews for practice. It took building 30-40 models to finally feel comfortable with the time constraints and all possible technical quirks.
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