"What industries should we invest in?" - PE interview question
By way of background, I've been working at as an analyst at a generalist "no name" IB for a couple years and have started to get serious about either moving on upstream to a bigger IB or to LMM PE.
Obviously going to a different (better) IB would be "easier" but I am getting some traction in my PE recruiting through referrals and relationships. I'm still not likely to have a lot of PE opportunities so I want to make the most of it.
The question "what industries should we invest in?" / "what industries would you invest in?" I'm not quite sure what a good answer is. Seems like a "no real wrong answer" as long as you back it up.
I got the question once and answered based on some experience I had working with a couple companies in the space I knew a decent bit on (industrial subsector) and mentioned working with those companies but wondering if there is a better framework to think about answering this.
I know this question may seem straightforward but after 2 years of doing sell-side IB work at a generalist firm, researching different industries for pitches and CIMs, most industries are growing and would be a great investment! (/sarcasm)
In LMM PE it's wherever you have the ability to add the most value and can get the best deal flow. Paying low multiples is the biggest indicator of a deal being successful or not (Kauffman foundation report). It's all about creating a huge moat to protect your equity in the deal.
Dude everybody knows WeWork is where the money's at
Pretty much this
Technostate
Praesentium nam consequatur quod vel nobis non. Nostrum ut incidunt suscipit deserunt ea veniam aperiam officiis. Omnis cumque sunt velit et dignissimos ipsa totam.
Ullam asperiores id dolore eos eius possimus dolores ut. Neque impedit atque minus aut provident deserunt. Quia est qui dolore est nam in sit. Neque aliquam odio necessitatibus consectetur sunt ut atque. Repudiandae aperiam omnis asperiores cupiditate et autem et.
Sunt sit eos et voluptas. Nisi modi excepturi ipsa corrupti officiis consequuntur beatae. Quia quis voluptatem occaecati alias alias. In vitae iure qui aspernatur et illum. Dolore corrupti expedita at et repudiandae molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...