Note that you’re not likely to see all of these or in this exact order – for example, you might get a standard LBO model test right off the bat coupled with some technical interview questions. Advanced LBO Modeling Test– You’re most likely to see this from the mega-funds or upper-middle market funds especially for those categorized as “specialists” (e.g.At traditional lower-middle market funds, you may only be given this Standard Model Test, while mega-funds and upper-middle market funds are known for giving more advanced modeling tests – albeit, this can differ by each recruiting cycle. You’re usually given about 1-hour minimum (and up to 2 hours at the most). Standard LBO Modeling Test (*This Tutorial*)– This is the level of difficulty that we’re going to cover here in this post.If you’re finding the standard test in this article to be difficult, you should go back and start with this one. Basic LBO Modeling Test – A relatively easy practice test that usually takes around 30 minutes.The level of difficulty will, however, vary and can be broken up into 3 broad buckets: The LBO Modeling Test is a near certainty at later rounds. Usually given at early rounds, you’ll be handed only pen and paper and 5-10 minutes to arrive at an implied IRR and other key metrics based on the information provided in the prompt. See: Top 25 Private Equity Interview Questions You’re more likely to see this in the first round if you come from a non-traditional background. If you’re completely new to this, you should start by reviewing those before moving onto a full model practice test such as our short-form LBO modeling test that precedes this intermediate-level test:īelow is a summary of when you should expect to see PE technical interview questions and LBO tests throughout the recruiting process: Typeįor investment banking analysts, you’ll likely not see a lot of these as it’s usually assumed you have this down. This LBO Modeling Test usually comes after the more basic “ Paper LBO” or Technical Interview Questions you might encounter in earlier rounds.
How Important is the LBO Modeling Test?.
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