How to Prepare for a Private Equity Case Study Interview

What Is a PE Case Study?

A PE case study is a practical test that simulates the work you would do as a private equity associate. Instead of just answering technical questions verbally, you are given real (or realistic) company data and asked to evaluate it as a potential investment.

Case studies are used by virtually every top PE firm — Blackstone, KKR, Apollo, Warburg Pincus, Bain Capital, Advent International, and most of the upper middle-market funds. They are often the most heavily weighted part of the interview process.

Types of PE Case Studies

1. Take-Home LBO Model (Most Common)

• Format: You receive a CIM (Confidential Information Memorandum) or data packet, typically 10-50 pages
• Time: 3-5 hours (sometimes up to a full weekend)
• Deliverable: A fully built LBO model in Excel and a 1-2 page investment memo
• What they evaluate: Modeling accuracy, key assumptions, investment judgment

2. In-Office Timed Case

• Format: Shorter data set, completed on-site at the firm
• Time: 1-3 hours
• Deliverable: A basic LBO model and verbal presentation of your recommendation
• What they evaluate: Speed, ability to prioritize, poise under pressure

3. Deal Discussion / Paper LBO

• Format: No model — you are walked through a hypothetical deal verbally
• Time: 15-30 minutes during a regular interview
• Deliverable: You talk through the key considerations and rough math
• What they evaluate: Conceptual understanding, quick mental math, investment instincts

The Step-by-Step Framework

No matter which format you face, follow this framework:

Step 1: Read and Understand the Business (20% of your time)

Before touching Excel, understand the company:

• What does the company do? What industry is it in?
• Who are the customers? What is the revenue model?
• What are the key growth drivers and risks?
• Is there a clear value creation angle for a PE sponsor?

Step 2: Build the LBO Model (40% of your time)

Structure your model with these tabs:

• Transaction Summary: Purchase price, sources and uses, entry multiple
• Operating Model: Revenue build, EBITDA projections, free cash flow
• Debt Schedule: Tranches, interest rates, mandatory amortization, cash sweeps
• Returns Analysis: Exit enterprise value, exit equity, MOIC and IRR at various exit multiples

Keep your model clean and auditable. Use color-coding: blue for inputs, black for formulas.

Step 3: Develop Your Investment Thesis (20% of your time)

Your memo or presentation should cover:

• Business overview: 2-3 sentences on what the company does
• Investment thesis: Why this is an attractive PE investment (3-4 bullet points)
• Key risks and mitigants: What could go wrong and how you would address it
• Value creation plan: Revenue growth, margin expansion, add-on acquisitions (synergies), debt paydown
• Returns summary: Expected MOIC and IRR under base, upside, and downside cases — include a sensitivity analysis

Step 4: Prepare for Q&A (20% of your time)

Interviewers will challenge your assumptions. Be ready to discuss:

• Why you chose your entry and exit multiples
• What your key sensitivities are (growth rate, margin, exit multiple)
• How you thought about the downside case
• What additional diligence you would want to conduct

Common Mistakes to Avoid

• Spending too long reading: You need enough context, but do not try to absorb every page of a 50-page CIM
• Over-engineering the model: A clean, simple model with defensible assumptions beats a complex model with errors
• Ignoring the investment thesis: The model is a tool — the real test is your judgment on whether this is a good deal
• Forgetting to sensitivity-test: Always show base, bull, and bear cases
• Sloppy formatting: PE firms care deeply about attention to detail. Format your model properly

How to Practice

Build 2-3 practice LBO models from scratch before your interviews. For a complete walkthrough, see our guide on how to walk through an LBO and our PE interview questions guide. Use publicly available company data or practice case studies from IB Flash, which includes PE-specific drills in our Question Bank designed to mirror what you will see in real case study interviews.