PE interview at VP / Principal level

I would think they'd probe your ability to think like an investor. That should be your number one goal - to convince the interviewer that you're an analytical investor type trapped in a banker's body. I'd definitely expect deal walkthroughs to be fair game. Also pitching an investment. That question at the end from your friend sounds like exactly what I'd expect.

I would agree with Tamara generally speaking - you are probably not expected to know the technical stuff inside out as analysts / associates would be though I think you should still come prepared nonetheless it's possible you will be interviewed by people up and down the rank (maybe not associates / analysts, but VPs upward) and some people could throw in a curve ball - not a modeling test, but perhaps a case. Not a huge focus for Principals (a bit more so for VPs) but you should give it some thought nonetheless.

The technical stuff people you'd want to see from you is understanding of docs (which you should know pretty well,) transaction process from a PE perspective and your experience in leading deal teams (PE setup is not very different from IBD's.) - this is equally important for VP and Principal roles.

Then on top of it is how you think about deals from an investment perspective, not just as a banker - when you look at a deal, what are the key thesis / risks, how would you look into them when you are in DD etc.) Maybe something from your past deals, maybe some idea that you have - I'd say this is fair game for everybody interviewing you and equally important for VP & Principals.

Finally - industry knowledge if you have any, relationships w/ senior management, owners, how do you go about sourcing, how do you build your edge / angle (similar to winning a mandate in banking, on the buy side, esp. in a process firms need to find an angles - in order to feel comfortable paying the extra turn of EBITDA that would get you the deal yet still allow to you reasonably think you can make your returns.) This is much more important for Principals than VPs.

I think the point about firm culture etc. is legitimate but very hard to pin down, both for you and the firm so it will be tested through multiple interactions, but I'd argue people don't expect you to come in knowing what they're like, how they operate. And unlike at the junior level where it is pretty much a one-way street, there is more mutual selling here where the firm would need to convince you as you need to convince them of a fit.

Thanks all - this is **extremely **useful!

A few questions / follow-ups below:

1/ Any resource you would recommend reading in terms of general advice, PE interviews deals case studies, etc. ?

2/ I'm probably over simplifying but to me key edge re differentiated proprietary deal flow mainly comes from industry knowledge and relationships / network. Any view on other important skills or ressources in that context?

3/ @ tamara_s: I get the point on investment thesis but not sure to follow the ones on investment themes. What do you mean by that? Ideas for sectors (or sub-segments of given sectors) as a whole?

4/ @ chaser: what do you mean by "maybe some ideas that you have"? Do you mean pitching a company out there, not (currently) for sale and on which I haven't worked on the buy or sell-side?

Thanks again

Sorry for the late response. I hope this is still useful to you.

1. Sorry I don't have anything to offer specifically. If you have any friend working on the buy side and are willing to share investment memos those would be the best sources to consider. Memos reflect funds' thought processes so they'd be the best materials you can have to familiarize with how funds construct thesis, identify risks and DD plan to deal with such risks.

Perhaps if you've worked with sponsors before, you could also look at past deals, both those that generated lots of interest and those that failed and considered them from those perspectives.

I'd think at the mid / upper level, interviews would be less theoretical, more real-life, including the cases.

2. I'd say broadly speaking that's it. But as you probably know when you get into each aspect, there are a lot of nuances. Also I think it's worth pointing out that while highly valued, (good) proprietary deals are realitiscally very difficult to come by and people know that (good in terms of fit with funds & valuation etc.) Inevitably, especially at larger firms, you will participate in highly competitive auctions and the relationship / industry knowledge / operational expertise etc. are important because more often than not you need some or all of it to build enough conviction and bid to win.

3. Yes - sort of like a pitch, something you can use to discuss during interviews, because naturally interviews would evolve around your experiences, transactions, ideas. I suppose an actionable idea is difficult to have... since, assuming you have it, perhaps it's your duty to bring it to your current employer first, which then makes sharing it difficult. More realistically, it would be something you worked on in the past (kind of related to 1)

is this for the VP level? I have some resources I can share if yes

what about your knowledge of credit agreement / legal docs, etc? what is your experience and skillset there?

Hi OP, I'm NOT (disclaimer) at your level but have frequently heard MDs / Partners comments on hiring profiles like yourself. Everyone above in this thread already raised the main "boxes" for what they look out for, but what I would add is the "senior executive presence" might have been overlooked.

It is really underestimated how much these MDs care about "senior presence" and "gravitas" because in your role, you would be managing investments at the board level and manage people who are in fact more senior than you (e.g. 50+ Year old CEO).

Management is often skeptical about "young PE talent" (to them

out of interest, how did you manage to secure these interviews? Networking or HHs?