Private equity modelling test: tips for success
Most private equity interviews include an LBO modelling test.
Employers use this to assess your technical accuracy, presentation skills, Excel proficiency and ability to generate investment insights.
How to approach the modelling test
The test may be done remotely or at the firm’s office, but it is usually time-limited. Given the tight deadline, clarity matters more than complexity. Focus on covering key considerations and double-check your work frequently to ensure your calculations are sound.
If the numbers make sense, you’re on the right track - this is a straightforward skills test, not a trap.
Some firms will ask you to walk through your model afterwards, while others will simply require a submission. Either way, this is a chance to demonstrate your analytical thinking and how the model informs your investment view.
Whether you’re a seasoned modeller or new to LBOs, practice is essential.
Even the most experienced candidates can struggle under time pressure.
To help you prepare, we’ve provided a range of practice materials and sample answers below.
If the numbers make sense, you’re on the right track - this is a straightforward skills test, not a trap.
Some firms will ask you to walk through your model afterwards, while others will simply require a submission. Either way, this is a chance to demonstrate your analytical thinking and how the model informs your investment view.
Whether you’re a seasoned modeller or new to LBOs, practice is essential.
Even the most experienced candidates can struggle under time pressure.
To help you prepare, we’ve provided a range of practice materials and sample answers below.
45 minute practice test
45 minute practice test answers
90 minute LBO modelling test
90 minute LBO modelling test answers