PE Question received & Upcoming Interview - Please advise

This is a two-parter question for the PE WSO guys/gals:

1) Someone asked me 'If I was considering a debt-collection company in Korea as an investment, what kind of questions should I ask?' I can't quite remember my response, but I remember I couldn't provide too much on the spot. I was wondering if people can chime in so I can get an idea of what I missed?

2) I have an interview coming up - the first round will be with 2-3 associates. I was wondering what advice would you give me to prepare for this?

In the last year or so I've had some occasional interviews with private equity shops. My performance (# of rounds) varies, but I generally do make it to 2nd rounds at least. But I think the thing I'm missing as of right now is how to think like an investor. If I were to compare Company A and B, how would I do it (if company B has higher historical growth but likely a much higher valuation) or again, what kind of questions would you ask about a company.

I have some of the weekend to prepare, but otherwise will be swamped with work, so not much time. Can any veteran PE posters give me some advice on how best to focus my time this wknd? I probably won't get surprised with a quickie lbo model test, but if you were doing first rounds - what would you ask someone?

Sorry about the long post - thank you for the help!

Comments (6)

 
Feb 28, 2011 - 6:29pm

1) what kind of debt? consumer i am guessing? typically any collateral?
2) what are the projections for the broader economy in South Korea?
3) Specifically, interested in expendable income.
4) Does the company have agreements in place with debt holders? If so, what are the agreements?

Off hand, I would say that I would be concerned with the consumer credit dynamic in a less developed economy. As people who are historically not used to borrowing become pseudo-sophisticated and borrow as consumers, do they understand/respect the ramifications of not paying?

 
Feb 28, 2011 - 9:35pm
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