Growth Equity Case Study Interview

Prospect in IB-M&A

Hey Guys,

I have an interview with a German Tech Focussed Growth Equity Investor and it is a back to back interview with an Associate and an Investment Manager. I have been told that the interview will have case studies. May I know if the case studies would be of LBO type or the ones that happen in consulting?

Thanks in Advance.

Comments (3)

Mar 25, 2020

Well it probably won't be the LBO type since it's unlikely they do LBOs ;)

Here's my firm's "case interview" approach, not sure what others in the industry do but I think it's a decent approximation of the skillset you need to be good at the job:

  • Identify an industry the candidate knows reasonably well based on past projects, deals, etc. (we don't hire undergrads, so easy to find something)
  • Ask them to talk through why the industry is exciting, what risks there are in it, who the incumbent players / solutions are -- basically seeing how thoughtful they can be about market dynamics and if they can approach a space as we would
  • Some brain-teaser type math, like asking them to estimate bottoms-up TAM for the space
  • Discussions of what financial / operating metrics you could expect to see in an industry like this -- what would sales cycles look like and why, what would you expect gross margin to be, etc.
  • If they flag any specific companies in the space, go a level deeper with those -- why is Company X's approach to the space unique, what's defensible, who would they be most likely to win with and why
Mar 27, 2020

You should also be prepared to interview the interviewer. If you could ask anything about a company to make an investment decision, what would you want to know ? Think about things line management, market size/growth, burn rate and competition.

To be honest, I've heard of both consulting and LBO-type cases so you should prepare for both. Also have a few companies in mind that you'd like to invest in and be prepared to speak about some sectors that you particularly like (e.g. AI, blockchain, health tech, mobility, recruitment software, etc.).

Mar 27, 2020