Financial Modelling Tests - Private Equity Careers Centre

It's becoming increasingly common for the private equity recruiter to include a financial modelling test as part of the assessment, this will always be in Excel. This guide provides practical examples on concepts that are often missed by candidates when facing a modelling test and will give you the confidence to stand out in this stage of the interview process.

This guide is suitable for those preparing for an interview with a private equity fund or currently in an interview process.

It will cover a number of techniques you'll find useful in putting together an LBO financial model during the interview including*:
Two full financial modelling tests based on real examples from private equity interviews, one for an LBO and one for a real estate investment, both with detailed solutions
How the financial statements are integrated
How to create sensitivity tables using the Excel TABLE function
Compound interest and inflation as a concept
How to convert any rate to annual, quarterly or monthly according to the timeline of the model
Compound Annual Growth Rate
Calculation of the Internal Rate of Return; and Net- Present- Value using the IRR, XIRR, NPV and XNPV Excel formulas
A very simple LBO example

We'll also give you six months access to an experienced financial modeller who will be able to answer any questions related to the modelling concepts and tests in this guide.

Category:

Education

Tags:

• Private Equity Modelling
• LBO Financial Modelling Test
• financial modeling