How to Answer the Why Private Equity Interview Question
Why Private Equity is a common private equity interview question you’ll encounter if you’re going through the interview process at a PE firm. It’s important to plan ahead so you’re not caught flat-footed and so that you have a compelling answer to the question. This guide will help you think about how to structure your answer.
Note: the answer below is from the perspective of an investment banking analyst or associate.
After working on several consumer internet deals, I’ve realized that I’m extremely passionate about the sector, and I’d like to be closer to operating companies in the space. While I’ve enjoyed working on these deals in IB, I’d like to have a longer-term focus and believe the case for investing in consumer internet is still very strong. I believe the companies you’ve invested in here at PE Company Partners are great names and I’d like to be a part of building and growing this type of portfolio. While I thoroughly enjoy financial modeling work, I’d also like to get some exposure to the Boards of Directors and CEO or CFO of operating companies to help create value.
What to Include in Your Answer to “Why Private Equity?”
Based on the answer above you can probably identify a few key points that are strategically mentioned. Below is a list of the key points you should probably include.
Thank you for reading CFI’s guide to answering one of the toughest private equity interview questions – Why private equity? To learn more and to ensure you’re well prepared, check out these additional resources: