PE Case Studies

Private Equity (PE) Associate interview case studies typically go beyond just building an LBO model. Based on the most helpful WSO content, here's what you can expect:

1. LBO Modeling:

   • A significant portion of the case study will involve building a three-statement LBO model.
   • You should aim to complete a full LBO model in under 2 hours. If time is tight, focus on the key elements: EBITDA, CapEx, changes in working capital, taxes, and the debt module.
   • Some firms may provide a partially built model, while others will require you to start from scratch.

2. Investment Memo:

   • After completing the model, you'll often need to prepare a short investment memo.
   • This memo should include:
     • Recommendation: Whether to invest or not.
     • Company/Industry Analysis: Key drivers, market positioning, and industry trends.
     • Financial Overview: Insights from your LBO model.
     • Risks and Mitigants: Highlight potential risks and how they can be addressed.
     • Further Due Diligence Questions: Areas requiring deeper investigation.

3. Presentation:

   • Some case studies require you to present your findings.
   • Prepare concise slides summarizing:
     • Investment Thesis: Why this deal makes sense.
     • Risks and Mitigants: Spend significant time here.

4. Case Study Duration:

   • Case studies typically last 3 hours. Time management is critical.

5. Additional Components:

   • Some firms may include qualitative elements, such as market sizing or strategic analysis, similar to consulting-style cases.
   • Be prepared to discuss how you would evaluate a business, its competitive positioning, and potential value creation levers (e.g., EBITDA growth, multiple expansion, debt paydown).

6. Preparation Tips:

   • Practice building 10+ full LBO models from scratch.
   • Use tools like the Macabacus plug-in to replicate work efficiencies.
   • Review old case studies from trusted analysts or colleagues.

By mastering these components, you'll be well-prepared for PE Associate case studies. Good luck with your recruiting journey!

Sources: My Path - MBA Banking Associate to PE, Q&A - 1st Year PE Associate at a US MF in Europe (KKR, BX, TCG, WP, TPG, BC, APO), Private Equity Interview Questions - 13 Topics to Know, Private Equity Recruiting Process (From Banking), Private Equity Interview Questions - 13 Topics to Know