why are some pe/hf interviews so precise?
so i was interviewing with a fund the other day, and they asked me about a transaction on my resume. i did this transaction about a year ago, and the woman was asking me what the nwc and cash #s looked like. i was like, wow it was a long time ago so i actually don't remember the specific #s, but they increased at about etc etc. i just dont get it, what's the point of being this specific? i haven't had this level of detail in any questions for other interviews, but still, how do you guys deal with these types of questions, what level of detail should you generally expect for deal questions?
also while i'm at it, what's a rundown of what you'd prep for if you were going into a pe/hf interview (types of deal questions, types of modeling questions, etc), or stuff you've been asked before. i think this would be a really helpful question for all of us trying to get into PE/HF, but with limited guidance.
i know alot of college kids love to answer questions on this board, and i would love to hear your input on most things, but i'd prefer if people who have worked in banking could give this one a shot.
Asking about NWC and CF for an old transaction is tough. Its hard enough remembering the last set of numbers when you have been gazing at the model and that's all you are focused on. Perhaps she was trying to tie it to something that she was currently working on... either that or she was calling BS on the transaction.
I would have tried to steer the question into a more qualitative discussion: I don't remember the exact numbers, but here is how I would think about NWC for a business like this (and go through the major items and how you would model them out) and here are some of the other unusual cash items and here is my way of projecting them going forward.
I'm surprised that an interviewer would want to focus on how good your memory is rather than how you think about things, but each to their own.
Good luck.
When I was interviewing with PE firms, my recruiter advised me to memorize the specifics of every deal on my resume. Best advice I've received in a long time.
They are not testing your memory. They are testing your anality. I always try to prepare for interviews as I would prepare for a pitch -- obsessive double-checking, having extraneous details ready at hand in case someone asks a weird question, and so forth. It's annoying, of course, but it's also a good competitive technique.
Criminal law is not my field but...Are you sure is legal to talk about those numbers???
Excellent advice. Drilling down the detail vets those who were there from those who merely heard about the deal.
Go easy on the codewords.
I loved Blue Horseshoe at 55.
Numbers can be tough, especially considering how often they change. Models can continue to change up until the day before the pitch. Addbacks can be put in or taken out. To remember exactly what numbers you finished at, that would be difficult. Of course, the information was all confidential unless it was a public co. so they probably can't tell if you're making things up or not to begin with.
say that you can't really share those numbers; i don't put specific companies on my resume, just general, description, and responsibilities, so i can get away with that. also, what tips would you guys have, in terms of modeling questions
M0ney, it is legal to talk about the numbers once the deal has gone public or is finished, unless the terms of the deal are kept permanently private for some reason.
Additionally, it is legal to talk about numbers as long as you don't name the companies who are party to the project. You use a code name. For extra security, I actually made up separate code names just for my recruiting purposes, just on the off chance someone knew someone who had already talked about the deal by its real code name.
any other suggestions? also, any specific questions regarding modeling that you guys have gotten in the past?
i ran an entire deal w/only an MD above me for the transaction i mentioned above, so i don't know if that comment really follows. but def appreciate the feedback from everyone; does anyone have any ideas about modeling questions?
I would be prepared to discuss the structure of previous transactions (i.e. propco/opco), means of financing (CMBS, ABL, etc). At my PE shop there was never any advanced modeling questions in the interview although I was asked to build a basic model given the financial statements of a company and a few assumptions. If you are comfortable with relationships between the P&L, BS, and CFS you shouldnt have too much trouble with the modeling questions.
that is def helpful; yeah i haven't typically gotten intense modeling questions either, but just wondering just for the sake of preparedness. anyone else have any input on this?
In the end, you shouldn't put anything on your resume that you can't speak to in detail. Yeah, it's great to have "Structured and modeled $15 billion LBO financing" on your resume, but you need to know all the stats to show that you really know the deal vs. being just a monkey fiddling on excel.
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