Private Equity Interview Case — Study Pdf

Initial Equity = $200. Exit Equity = $359.2. MOIC = 1.80x (or 80% return). IRR over 4 years: Approx 16% (1.8^(1/4)-1 = ~16%).

If you forgot debt paydown, exit equity would be $547.2 - $300 = $247 (1.24x MOIC, 5% IRR). You would be rejected. How to Access the "Private Equity Interview Case Study PDF" You have the theory. Now you need the reps. private equity interview case study pdf

$60.8 * 9.0x = $547.2

This is the gatekeeper. If you cannot calculate the IRR and cash-on-cash return of a simplified LBO on a whiteboard within 90 seconds, your interview ends there. Initial Equity = $200

Year 0: $50 Year 1: $52.5 Year 2: $55.1 Year 3: $57.9 Year 4: $60.8 private equity interview case study pdf