FOF Modeling Test Question
Have a modeling test coming up for a FOF that does a lot of GP investments and co-investments. The test is 2.5 hours and consists of an LBO, writing test, and attention to detail test. What should I expect/prepare for? I’m practicing generalist LBOs at the moment but not sure of what else I should be doing.
My guess is that the prompt for the writing test will be to write an investment memo based on a fake CIM for a theoretical company. I've never seen an attention to detail test and would be curious for you to share what that is after you take it.
Thanks for the reply. Any thoughts on how to prepare for writing the investment memo? Also, any thoughts on what type of LBO test it will be?
I'd guess the LBO will be pretty vanilla. If you can build a three-statement operating model with a cash sweep for debt paydown and put in a MOIC / IRR, you'll be fine. Possibly you could be asked to build a sensitivity table.
If you're asked to write an investment memo and you aren't given some sort of framework to fill out, I'd go with the following and try to work in these details if they're available in the materials you're given:
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