Principal level recruiting
Any tips or advice on how to prep for a senior/mid-level PE interview? I’m currently at another PE fund looking to make a move geographically for personal reasons.
What should one expect in these interviews? What is the best way to prep? Are modeling tests typical at the Senior VP/ Principal level?
Ah, making a geographic leap in the PE jungle? Here's some ripe advice for you:
Understand the Landscape: At the Senior VP/Principal level, interviews often focus on your ability to source deals, your network, and your industry expertise. Be ready to discuss your track record in detail and how it aligns with the new fund's strategy and geographic focus.
Expect the Unexpected: Unlike analyst or associate levels, don't expect a heavy emphasis on modeling tests. However, be prepared to discuss past deals and your role in them. You might be asked to critique a deal or discuss what you would have done differently.
Show Your Unique Value: Highlight your transferable skills, such as investment thesis formulation, transaction execution, and portfolio management. Be clear about what you bring to the table that will add value to the new fund.
Preparation is Key: Brush up on your understanding of legal documentation and your ability to negotiate key transaction agreements. This is crucial at a senior level where you'll be expected to lead rather than follow.
Network and Industry Expertise: Be ready to discuss your industry expertise and how you can leverage your network to source proprietary deals. This is often a differentiator at the senior level.
Cultural Fit: At a senior level, cultural fit becomes even more important. Be yourself, but also be mindful of the firm's culture and values. Show that you're not just a deal machine, but someone who can be part of a team.
Practice Makes Perfect: Run through common questions like "tell me about yourself" and be ready to articulate your investment philosophy and how it's been reflected in your career to date.
Remember, at this level, it's not just about what you know, but who you are and how you fit into the firm's future. Swing from those vines with confidence, and you just might land in the perfect new spot on the PE map. Good luck!
Sources: PE interview at VP / Principal level, Q&A: MBB to MM PE, Basic Questions About PE Recruiting Answered, What to expect in PE interviews as an undergrad?, Typical PE Credit Interview Questions
Haven't seen model tests. Longer interview timelines (in terms of # of interviews and overall months), more about assessing if compatable fit at this point. Expect lots of questions around why leave, which your geography rationale should help head off. Deep on deal discussions really digging into what you personally did vs. what the partners on the team did. Depending on the firm, may be looking for proof of sourcing ability.
This is accurate. I recruited as a VP/Principal.
Not at the VP / Principal stage but would love to learn more
Are these deal discussions more conversational and focused on experience or does it still feel like partners are pulling out "gotcha" questions where they want to talk through numbers / run through different mental problems / etc.
Curious (if you've gone through this type of search) what questions caught you off guard? In general, curious about how interviews work for more senior people
I didn't see "gotchas" in deal discussions. They will get into details and you'll be expected to know those details but like (most) associate recruiting, they aren't asking details to give you a pop quiz on rote memorization, they're testing to see what your involvement really was. They will go deep on your thought process, original thesis, how you managed the investment etc. Senior roles vary across firms and they're just trying to understand your specific responsibilities and how you think.
Actually, the only "gotchas" I got were in "deep" behaviorals like you'd ask an undergrad. They were not totally unfair questions, but I frankly underprepared for that stuff because I had had round after rounds talking about tangible work experience and that's the groove I was in and how I prepared. So that was on me.
Going through a similar process myself. How many deals did you list on your resume out of curiosity? Im inclined to put two just given the level of detail to know at this level of recruiting vs. Associate years but I’ve heard others say to try to have a minimum of 3. Thoughts?
IMO at the sr VP / principal level the guiding principal is just to really tailor your resume to the specific opportunity. They aren't shopping just for aptitude anymore, they're shopping for part "plug and play" and part aptitude. So whatever that leads you to write on your resume is probably logical. That said, 3 deals feels more typical than 2, but you might be fine with 2 if you paired the resume with a "deal sheet" as a separate document.
Agree with the posts above. The other part I will add is to “interview” the firm as well. Unlike associate recruiting, there’s far less transparency about what firms are like at the VP+ level (some places that are horrible to be as associates may be fine as a VP and vice versa). IMO, the most important factor ends up being senior leadership support. If the firm has a history of lateral VPs making partner that’s a good sign. If it’s a firm that historically promotes from within, that’s not a great sign. As a lateral, you’ll naturally be behind people who did their associate years at the firm > bschool > came back. It’s a much bigger deal if this path is the default vs if there’s a mix of this path and laterals.
Also important is to understand performance. If you’re already mid/senior level then you probably have friends at your level who know the firm you’re targeting and you definitely should ask. I would also ask people you know at pensions/endowments about the firm (even if they aren’t LPs, they probably have seen their pitch materials). Ask your portco execs as well. You’ll be really surprised how many firms are riding historical performance vs reality today. At the end of the day, it still might be the right spot for you but much better to know what you’re getting into vs going in blind and getting a surprise
I bombed a Principal level first round yesterday. AMA, the main thing is I was expecting the gotcha questions for deal exp, it was for a secondaries role, so a bit adjacent to my exp in hybrid value and pure credit. But I had technical info prepped and then just seemed silly for views on thesis etc
What was the reason you bombed? Any specific questions?
Completely opposite actually, I had technicals down pat, just more thesis, articulation of involvement. Just was an overall poor performance by myself
What is the best way to prep for questions on deal experience? What do firms typically ask?
Any frameworks or guidance would be appreciated. For example, what are the metrics we're expected to memorize, as opposed to qualitative discussion
Didn't see this before posting my above comment
Agree this would be really helpful to better understand!
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