PE Modeling Tests / Logistics

Private equity (PE) modeling tests and case studies can vary in logistics depending on the firm, but here’s a breakdown based on the most helpful WSO content:

1. Environment:

   • In most cases, you’ll be in a private room or a designated space to complete the test. Some firms may have multiple candidates doing the test simultaneously in separate rooms, but it’s rare to be in a group setting.
   • The test is often monitored indirectly. For example, they may check in periodically or have cameras in the room to ensure fairness.

2. Equipment:

   • Typically, the firm provides the necessary equipment, such as a laptop, mouse, and keyboard. They’ll set you up at a desktop or workstation in their office.
   • However, some firms may allow or even require you to bring your own laptop. If this is the case, they’ll usually provide the files and instructions via email or USB.

3. Timing:

   • The modeling test is usually timed, with durations ranging from 30 minutes (for a quick paper LBO) to 3 hours (for a more detailed 3-statement LBO model).
   • After you complete the test, you may have to wait while they review your work. In some cases, you’ll present your model and findings to the interviewers immediately after completing the test.

4. Review Process:

   • If you’re not presenting immediately, you might wait in a separate room while they evaluate your work. This could take anywhere from 15 minutes to an hour, depending on the complexity of the test and their review process.

5. Pro Tips:

   • Always clarify logistics beforehand. If they don’t specify, ask whether you need to bring your own equipment or if they’ll provide it.
   • Practice working under timed conditions to simulate the pressure of the real test.
   • Be prepared to explain your assumptions and thought process during the review or presentation phase.

The key is to stay calm, focused, and efficient during the test. PE firms are not just evaluating your technical skills but also your ability to think like an investor under pressure.

Sources: Q&A: Barclays IB to MM Private Equity, Q&A: Career start and progression across IBD // Restructuring // PE special sits, Private Equity Recruiting Walkthrough – My Experience, A Guide on How to Navigate On-Cycle PE Recruiting, https://www.wallstreetoasis.com/forum/private-equity/a-guide-on-how-to-navigate-on-cycle-pe-recruiting?customgpt=1