This is where 50% of candidates fail. The Uses must always equal the Sources.
Common Trap: Fees are tax-deductible for the HoldCo, but you must fund them on day one. Many models deduct fees from equity incorrectly.
Time: 60–75 minutes
Tools: Excel (no internet, no pre-made models) private equity interview case study pdf
This is the most common format for upper-middle-market funds. You are given a messy P&L, balance sheet, and cash flow statement (often with broken links or missing historical data). You must:
The Killer: You must build an LBO-specific cash flow sweep. In a standard corporate model, cash is an asset. In an LBO, all excess cash must immediately pay down debt. If you forget to sweep cash, your IRR will be off by 200–300 bps. This is where 50% of candidates fail
| Resource | Focus Area | |----------|-------------| | BIWS PE Guide (PDF case examples) | Full LBO modeling + memo writing | | Street of Walls – LBO Model | Paper LBO speed drills | | PEI – Private Equity Case Studies | Real fund-level examples | | McKinsey / Bain PE practice tests | Operational due diligence |
If you are aspiring to break into the world of leveraged buyouts (LBOs), you already know the golden rule: You cannot win the interview without mastering the case study. Common Trap: Fees are tax-deductible for the HoldCo
In the competitive landscape of private equity recruiting, the resume gets you in the door, but the case study decides whether you get the offer. While investment banking interviews focus on valuation methodologies (DCF, Comps, Precedents), private equity interviews focus entirely on machinery—specifically, the LBO model and operational value creation.
This article provides a definitive breakdown of the PE interview case study, including the specific formats you will encounter (paper LBO, 1-hour modeling test, 3-hour full case study), the technical traps that trip up 90% of candidates, and—most importantly—how to access a private equity interview case study PDF to practice with.