목록 외환 거래 회사 영국 육상

간단한 스포츠 거래 어떻게 내가 수백만을 거래 했는가. 스포츠 거래는 이벤트가 끝나기 전에 수익을 내기 위해 스포츠 베팅 확률을 베팅하고 놓는 것을 의미합니다. 배킹은 내기와 동일합니다. 책꽂이는 도박꾼에게 확률을 제공하는 약자입니다. 스포츠 상인은 경기 또는 심지어 킥 오프 전까지 돈을 버는 것이 가능합니다. 스포츠 트레이딩은 금융 시장 및 정치적 베팅이나 특별 베팅 에서조차 거의 모든 스포츠 시장에 적용될 수 있습니다. TV 쇼 및 음악 컨텐츠와 같은 음악 콘텐츠를 제공합니다. 개인적으로 2004 년 풀 타임 스포츠 거래를하고 2007 년에 종료했습니다. 그 기간 동안 나는 경마 시장에서 수백만 달러를 거래했으며 주식 및 외환 거래로 전환하는 데 도움이되는 경험을 얻었습니다. 내 스포츠 트레이딩 경력 중 한 달에 3 백만 유로를 교환했습니다. 어떻게 시작했는지, 자금 관련 요구 사항, 돈 관리에 대한 조언, 예측 개선 방법 및 베팅 사용 방법을 확인하십시오. 차트. 어떻게 스포츠 트레이딩을 시작 했지요. 사람들은 스포츠 트레이닝을 시작하는 방법에 대해 자주 조언을 구합니다. 나는이 기사에 대한 링크를 제공합니다. 당신이 줄을 읽으면, 알게 될 것입니다. 많은 돈이 필요합니다. 돈 관리를 적용하고, 스포츠 거래의 첫 번째 단계에서 피할 수있는 것. 그래도, 수익성있는 스포츠 상인이 되려면 시장을 올바르게 예측해야합니다. YouTube에 올린 동영상이 가장 많은 시청자를 끌어 들인 동영상이므로이 점도 나에게 가장 매력적이라고 ​​생각합니다. 2004 년에 베팅 교환을했는데 그때까지 대부분 온라인 마권 제작자에게 정기적으로 베팅을했습니다. 처음에는 베팅 교환기에서 무슨 일이 일어나고 있는지 이해하기 어렵다는 것을 알았습니다. 확율은 위아래로 움직였습니다. 일치하기를 기다리는 돈이있었습니다. 우리는 저술가로서의 역할을 할 수있었습니다. 처음에는 나를 몰아 부쳤습니다. 내가 쿠데타를 돌려 줄 거라는 걸 알아라. 1 주일 후 le-week 스포츠 상인이되었습니다. 비디오를 온라인으로 보았을 때 스포츠 상인이 경마를 내기 위해 어떻게 돈을 벌었는지에 대해 설명했습니다. 그는 거의 잃는 날을 보지 못했다는 것을 자랑했습니다. 왜냐하면 무언가가 사실 일 가능성이 너무 높을 때 말하는 것입니다. 문제의 스포츠 상인 인 아담 토드 (Adam Todd)는 나를 교환 교환 기술에 대한 이해에 상당한 시간을 할애했습니다. 마지막으로, 비디오를 반복해서보고 난 후에, 그 플러그와 Betfair에 처음으로 500 유로를 예치했습니다. 그것은 내기 교환에서 내가 처음이자 유일한 예금이었습니다. 아담이 보여준 것과 내 능력을 기반으로 한 일종의 스캘핑은 스캘핑이라고 불립니다. 스캘핑은 작은 확률의 움직임을 거래하면서, 그러나 일정한 이윤 2 오렌지를 사다가 2 초 후에 팔 수 있다고 상상해보십시오. 네, 스캘핑이 스테로이드로 거래되고 있습니다. 스컬 핑을 할 때 속도가 필요합니다. 아니요, 24Mbps 인터넷 연결로는 내가 말하는 속도가 보장되지 않습니다. 당신은 온라인 게임을하고 노련한 지체를 경험했습니다. 당신이 가상 죽이기 위해 소비하는 수백 밀리 초는 스포츠 거래와 스캘핑에서 수백 달러를 의미 할 수 있습니다. 이제는 내가 스컬 핑을 시작한 가장 좋은 부분이 있습니다. 56Kbps 전화 접속 인터넷 연결 최저 2 초마다 기분이 상쾌 해짐 때때로 주문을 제출하고 약 5 초 또는 10 초 동안 무슨 일이 일어 났는지 알지 못함 암흑기에 대해 이야기하기. 이러한 상황에도 불구하고 스포츠 트레이딩의 첫 달. 그러나 나 자신을 깨닫고 있었어. 분명히 스포츠 트레이딩에서 피할 것. 한 달 후 광대역 인터넷 연결을 설치할 때, 내 승리는 급증했다. 나는 잃어버린 하루를 보냈지 만, 나는 잃어버린 달을 갖지 못했다. Adam Skillful 거래자는 실제로 거의 모든 경마에서 돈을 벌 수 있습니다. 최고의 handicappers 및 스포츠 도박꾼은 그것을 이길 수 없었습니다. 최고의 스포츠 베팅 전략은 빨간색으로 며칠을 가질 수 있습니다. 강탈은 완전히 다른 짐승이었습니다. 스캘핑이 당신을 잘 의미하지 않을 때 돈을 잃었습니다. 나쁜 예측을했거나, 당신이 쫓아 갔거나, 당신이 나쁜 인터넷 연결을 했었습니다. 나는 돈을 잃을 다른 이유를 생각할 수 없습니다. 당신의 손실을 줄이기위한 규칙은 짧습니다. 당신의 승자가 뛰는 것을 scalping에 적용시키지 말라. 당신이 항상 당신의 손실을 줄이고 당신이 상처 입히기를 거의하지 못하게하기 때문이다. 그러므로 손실을 일찍 자르지 않는다면, 너는 scalping이 아니라 도박이다. 거래에서와 마찬가지로 거래 확률을 정확하게 예측할 때 돈을 벌어줍니다. 잘못된 방향으로 끊임없이 거래한다면 파산 할 것입니다. 스캘핑에서 많은 작은 승리를 얻는 대신 많은 작은 손실을 겪는다는 것을 의미합니다. 예측을 개선함으로써 스캘핑에서, 당신은 승리 손실 비율을 증가 시키며, 무역 당 손실 된 돈이 아닙니다. 이것은 궁극적으로 더 많은 상금을 얻게 될 것이라는 것을 의미합니다. 그러나 각 거래 당 순 금액은 거의 동일하게 유지 될 것입니다. 나중에 경마에서의 예측과 내가 거래 한 거의 모든 다른 시장에서의 예측을 어떻게 개선했는지 설명 할 것입니다. 손실을 추적하십시오 이것은 규율이 부족합니다 손실을 쫓는 스케이터, 스포츠 상인, 포지션 상인 또는 투자자가되는 것은 가장 큰 누출이 유출은 무릎에 유익한 전략을 가져올 수 있고 쫓아 낼 것입니다. 쫓아 다니는 손실은 어떤 형태의 도박에서도 발견됩니다. 따라서 스포츠 거래를 할 준비가되지 않았습니까? 스포츠 거래에서 높은 도박 빈도 때문에 , 훈련의 부족은 훨씬 더 짧은 시간에 치명적인 결과를 가져올 수 있습니다 당신이 기울이기 및 스포츠 거래로 파고하기 전에 기질을 잃는 경향이 있는지 확인하십시오. 나쁜 인터넷 연결 이것은 많은 설명이 필요하지 않습니다 귀하의 인터넷 거래가 중단되면 세션, 당신은 토스트입니다 비상 사태의 경우 백업 계획이 있어야합니다. 보통 백업 인터넷 연결이 포함되어 있습니다. 이 두 번째 연결은 그렇게 빠를 필요는 없지만 뒤죽박죽 일 필요는 없습니다 믿을 만하다. 당신은 열려있는 거래를 단지 닫을 것입니다. 사실, 경마가 시작되기 전에 스포츠 거래에서 돈을 잃을 또 다른 이유가 있습니다. 그러나 그것을 처리하기 위해 글 머리 기호 목록 대신 표제가 필요했습니다. 경기가 끝나면 경기 할 때 경기가 시작됩니다. 경주에서 승리하기 위해 계속 된 우니 말은 저에게 전체 은행 원가를 요구하는 공개 거래로 저를 떠났습니다. 실제로 비현실적입니다. 당신은 인플레이 게임을해야하고, 공식적인 시작 시간은 재앙에 대한 처방이다. 하지만 왜 처음에 그 일을 할 것인가? 당신은 정규 거래 세션에서 예상했던 것보다 더 많은 것을 잃고 있으며, 손실을 빨리 회수하기 위해 약간의 도박을하려합니다. 당신은 그 것을 목표로하고 있습니다. 시장에서 벗어나지 만 확률은 멈춰 버린 것 같습니다. 당신이 놓친 특정 시간에 시작합니다. 오늘의 거래 소프트웨어가 그 오류를 피하기 위해 알람을 설정했지만, 얼마나 자주 상인을 지키지 않는지 놀라게됩니다 그들의 시계에 관한 눈. 이유가 무엇이든간에 ou는 거래를 시작하고, 다시 한번 그렇게하지 못하게하려고합니다. 손실을 수락하고, 한 번만 수익을 내며 다음 경마로 이동합니다. 다음 기회는 결코 끝나지 않습니다. 당신은 돈이 많이 드는 환경에 자금을 투입 할 변명의 여지가 없습니다. 귀하가 플레이 할 때조차도, 상당한 손실을 감당할 수있을만큼 충분히 징계를 받아야합니다. 플레이 스포츠 트레이딩은 다른 접근 방식을 요구합니다. 당신이 거래 자본의 50 또는 100을 위험에 빠뜨렸을 때 당신을 심각한 불이익에 빠지게 할 것입니다. 그리고 자본에 관해서는 이제 돈 관리에 대해 몇 마디 말하십시오. 스포츠 거래에 얼마나 많은 돈이 필요합니까? 이것을 읽으면, 나는 아마 당신이 스포츠 거래에 관해서는 아마추어라고 생각한다. 따라서 스포츠 거래에 익숙해 질 때까지 최소한의 돈을 투자해야한다. 왜냐하면 그들이 말했듯이, 당신은 그 돈을 잃을 것이기 때문이다. 그것을 당신의 트레이딩 스터디에 대한 수업으로 생각해 보라. 왜 그렇게 많은 돈을 들여 몇 레슨을 가르 칠 수 있겠습니까? 나는 금융 거래와 차트 분석에 대해 공부했지만, 도박에서 충분히 훈련을 받았다는 것을 증명했지만 500 유로로 시작했습니다. 트레이딩 북을 읽지 않고 첫날부터이기겠다고 생각합니다. 연습은 모든 책을 능가한다는 것을 기억하십시오. 하지만 발을 땅바닥에 떨어 뜨리려면 배경 지식이 필요합니다. 거래 노력을 위해 특정 금액을 할당 한 후 그 돈을 제대로 관리해야합니다 어떻게해야합니까? 내 스포츠 트레이딩 돈 관리 기사로 넘어가세요. 돌아와. 읽었 니? 좋아, 이제는 스포츠 트레이더가되기 위해 내가 한 일을 완벽하게 잘 알고있다. 인기있는 스포츠 웹 사이트 인터뷰 사실, 이 특정 인터뷰는 꽤 인기가 있었고 그 게시물에서 내 스포츠 트레이딩 경력에 대한 자세한 정보를 찾을 수 있습니다. 2007 년에 끝난 경력. 전문 gambl의 저주 도박과 투자는 대개 많은 돈을 벌 수있는 기회를 제공합니다. 불행히도 이러한 기회는 오래 가지 못합니다. 단어가 빠져서 어부가 포드에 뛰어 들면 물고기는 멸종합니다. 가장자리가 심하게 영향을 받고 때로는 시장에 영향을줍니다 더 이상 균형이 맞지 않아서 더 이상 새로운 전략은 실패합니다. 반면에 오래된 전략은 실패하고 새로운 전략은 실패합니다. 스포츠 무역에서 일어난 일입니다. 빠른 인터넷 연결을 통해 더 많은 상인들이 파티에 참여했고, 보다 기민한 도박꾼이 트레이더들과 더 정교한 트레이딩 시스템이 나왔습니다. 진화해야했던 구식 게임 시스템을 이기기 위해서였습니다. 카드 카운팅으로 인해 카지노가 블랙 잭 게임을하지 못하게 된 이후에 진화 한 것처럼 말이죠. 그리고 그것은 전문 도박꾼의 저주입니다. 적응하거나 죽습니다. 그 시간에 나오는 또 다른 기회를 살펴봄으로써 적응했습니다. 그 기회를 통해 나는 다시 카드 놀이로 돌아갈 수 있습니다. 여기 내 포커 이야기를 읽으십시오. 스포츠 트레이닝을위한 경기 결과. 전나무 무엇보다도 내 베팅 블로그는 스포츠 토론에 관한 베팅의 일환으로 스포츠 거래에 관한 기사를 정기적으로 게시합니다. 온라인으로 찾은 기사를 저장 한 잡지를 만들었습니다. 스포츠 베팅 및 거래 기술을 향상시키는 데 도움이됩니다. 자유롭게 읽을 수 있습니다. 내 생각에 주식 시장과 기술적 분석에 대해 공부하면 스포츠 거래에서 주식 거래로 이동하는 방법에 대한 조언을 제공합니다. 시장 깊이의 행동을 더 잘 이해하고 더 좋은 반점을 찾을 수 있어야합니다. 그걸 염두에두고, 여기에 내가 강하게 당신이 시간을 보내고 어떤 리소스를 사용하는 것이 좋습니다. 어떤 형태의 거래도 공급과 demand. info 사이의 심리적 인 싸움이라는 것을 잊지 마세요. 제휴사 링크를 클릭하면 이 블로그의 청구서를 지불하는 데 도움이 될뿐만 아니라 내 웹 사이트에서 읽는 유용한 팁에 대한 감사를 표시합니다. 게다가 돈을 쓰지 않으면 링크를 사용해야합니다. 무역 거래 소프트웨어의 최신 시대에 정교하고 진보 된 거래 소프트웨어가 필요합니다. 그렇지 않으면 경쟁이 항상 앞서 나갈 것입니다. 이 소프트웨어는 차트 분석, 즉석 주문 배치 및 녹화 기능을 제공합니다 자신의 장점 중 몇 가지를 지명하기 스포츠 거래에서 어떤 소프트웨어를 사용할 지 결정하기 전에 시간을두고 시험해보십시오. 또한 공식적으로 승인 된 소프트웨어 공급 업체와 자격 증명을 공유하는 것을 두려워하지 않아도됩니다. 다음 목록에는 내가 개인적으로 시도하고 년간 사용했던 소프트웨어가 포함되어 있습니다. 베넷 엔젤 당신과 도박 교환 사이에 앉아있는 소프트웨어뿐만 아니라 그것은 첨단 기술, 무역 도구지만 첨단 도박 도구 모음 Geeks Toy이 Betfair 베팅 애플리케이션은 간단하고 사용하기 쉽도록 설계되었지만 동시에 수많은 ne w 혁신적이고 강력한 기능을 제공합니다. 불행히도, 내 지식으로는 스포츠 거래를위한 단일 책이 없을 수도 있습니다. 아마도 시장에서 나 자신을 쓰는 것이 불가능할 것입니다. 하지만, 할 때까지 투자 권장 사항을 확인하십시오. 웹 리소스 및 거래 도구 . PinnacleSports 확율 움직임의 확률 차트. 패키지를 구입할 때 JIMMAKOS 쿠폰을 사용하여 15 할인. BetExplorer 전세계의 거의 모든 온라인 sportsbook에서 최신 확률 운동. OddsChecker Drifters 및 모든 도박 시장에서 온라인으로 제공되는 증기선. 아래에서 찾을 수 있습니다. 내가 스포츠 베팅과 거래에 대해 쓴 가장 최근 기사 10 개. 가장 최근의 스포츠 거래 POSC. CASC에 대한 과세 소득을 해결하십시오. 너무 자세하게 설명되어 있습니다. 빠른 가이드를보십시오. 귀하의 단체가 HM 수익 및 세관 HMRC에 아마추어 커뮤니티로 등록되어있는 경우 스포츠 클럽 CASC를 이용하면 세금을 납부하기 위해 소득의 어느 부분을 해결해야합니까? 과세 소득에 대해 HMRC에 알리지 않으면 벌금이 부과 될 수 있습니다. CASC는 과세 대상 소득으로 간주됩니다. CASC는 조세 목적 상 회사로 취급되므로 세금 감면 자격이없는 소득이나 자본 이득에 대해 법인세를 납부해야합니다. 예를 들어, 30,000 2015 년 4 월 1 일. 귀하의 CASC는 자격 취득을 목적으로 모든 소득 및 이익을 지출해야하거나 세금 면제의 일부 또는 전부를 잃게되며 클럽은 세금 계산서를받을 수 있습니다. 자격 취득이란 자격을 갖춘 스포츠 시설을 제공하고 사람들이 회사 세금 신고서를 보내달라고 요청한 경우, 이를 완료하고 시간제 납부금을 납부해야합니다. 이익을 창출하십시오. 비회원에게 물품이나 서비스를 판매하는 경우 귀하의 CASC가 거래되고 있습니다. 매출액이 2015 년 4 월 1 일 이전에 50,000 명 30,000 명 이상인 경우 수익에 대한 세금. 귀 클럽이 투표 회원에게 상품이나 서비스를 판매하는 경우 거래로 간주되지 않습니다. 예를 들어 회원 전용 막대를 운영하는 경우이 경우에는 이익에 세금을 부과하고 소득은 2015 년 4 월 1 일 이전에 50,000 한도 30,000에 포함되지 않습니다. CASC에 등록 된 골프 클럽은 비회원에게 녹색 수수료를 부과하는 데 2 ​​만 8,000을 투입하고 클럽 시설을 유지하기 위해 수입을 사용합니다. 클럽은 법인세, 매출액이 50,000 달러 미만이기 때문에 CASC로 등록 된 볼링 클럽은 상점에서 비회원으로 상품을 팔아 54,000의 매출을 올리며 8,000의 이익을 얻습니다. 클럽이 매출액이 50,000을 초과하여 8,000 개의 법인세를 납부합니다 귀하의 CASC 거래 수입이 3 만 달러를 넘으면 HMRC에 거래 이익에 관해 세금 신고서를 작성해야합니다. 벌금을 부과 할 수 있습니다. 재산을 임대하십시오. 재산을 임대하면 이익에 세금을 납부해야합니다. 소득은 2015 년 4 월 1 일 이전에 2 만명이 넘는 20,000 명입니다. 30,000 명에는 CASC가 소유 한 회원 및 비회원 모두의 소득이 포함될 수 있습니다. CASC는 트레이드를 수행하기 위해 전액 출자 회사를 설립 할 수 있습니다 이러한 세금 공제 혜택을받지 못하는 활동이 회사는 종종 부모 CASC와 함께 Gift Aid 약정을 체결하여 과세 대상 이익의 일부 또는 전부에 해당하는 금액을 자선 단체에 지불하겠다고 동의하거나 계약합니다. CASC 소유의 회사는 수익금으로 취급하지 않고 선물 보조 규정에 따라 적격 한 자선 기부로 지불 할 수 있습니다. 비 국내 요금. 귀하의 재산에 비 국내 요금의 20을 지불해야합니다 CASC는 자동으로 80 % 할인을받을 수 있습니다. 자산을 매매하거나 양도합니다. 모든 수익금이 적법한 목적으로 사용되는 한 건물과 같은 자산을 판매함으로써 발생하는 이익에 세금을 부과하지 않아도됩니다. 자본 이득을 지불해야 할 수도 있습니다 자산을 매각하고 해당 이익을 적법한 목적으로 사용하지 않는 경우 세금. 소유하고있는 자산이 적법한 목적으로 사용 중지되면 세금을 부과 할 수도 있습니다. 자산을 민영화로 이전하면 CASC를 등록 취소 할 수 있습니다 e 무료 또는 시장 가치 이하의 소유권 또는 회원에게 클럽의 소득이나 자산을 제공하십시오. 클럽 자산의 가치에 대해 세금을 내야 할 수도 있습니다. 부동산 수입. 부동산 임대를 통해 돈을 벌 수 있습니다 당신에게 속한 소득 공제가 허용되는 소득이 연간 20,000 이상인 경우 전액을 세금으로 납부해야합니다. HMRC에 귀하가 이윤에 관해 알려야하며 귀하의 소득이 1 년에 20,000 명이 넘어야합니다. 귀하가 돈을 내지 않으면 벌금이 부과 될 수 있습니다. 귀하의 CASC가 부가가치세 등록을 필요로하는지 여부에 대한 규칙은 과세 대상 비즈니스 용품을 제공 할 경우 VAT에 등록해야합니다. 상품 또는 서비스를 구매할 수 있으며 매출액은 부가가치세 (VAT) 등록 기준 액보다 높습니다. 기금 모금 행사 및 특정 스포츠 활동으로 인한 수입은 부가가치세가 면제 될 수 있습니다. CASC는 세금 목적으로 회사로 취급되므로 CASC는 인코 2015 년 4 월 1 일 이전에 50,000 30,000 미만의 거래에서 얻은 이익과 같은 세금 감면 혜택을받을 자격이없는 저 또는 자본 이득. 귀하의 CASC가 세금을 납부해야 할 경우 세금을 납부해야합니다. 납부해야 할 세금이없는 경우, HMRC가 귀하에게 요청할 경우 세금 환급. 제한된 회사 인 CASC는 회사 계좌에 연례 계정을 보내야합니다. 면제 및 구제. 등록 된 CASC를 다시 등록하면 기프트에 대한 세금 청구로 세금 혜택을 얻을 수 있습니다. 법인세 귀하는 소득 및 자본 이득 및 비 국내 이자율 면제에 대해 지불하는 세금입니다. 귀하의 CASC는 적격 한 목적으로 모든 소득 및 이익을 지출해야하거나 세금 면제의 일부 또는 전부를 잃게되며 클럽은 세금 계산서를받을 수 있습니다. 세금 상환 청구. 귀하가 세금 상환을 청구 할 자격이있는 경우, HMC에 등록하여 CASC로 인정되어야합니다. CASC에 공인 된 공무원이 될 사람을 지명해야합니다. 예 : 재무, 직원 또는 수탁자 권한있는 공무원이 환급을 제출할 수 있습니다. 귀하의 CASC 회계사와 같은 후보자를 선택하실 수 있습니다 (선택 사항 임에도 불구하고 귀하의 공인 된 공무원과 후보자는 누구인지 반드시 밝혀야합니다) 공인 된 공무원이나 후보자가 변경된 경우 양식 ChV1을 사용하여 HMRC에 통보하십시오. 컴퓨터에 ChV1 양식을 저장하고 화면에 작성한 다음 인쇄하여 서명 한 후 양식의 주소로 보내십시오. CASC 파트로 클럽을 등록하면 회계 기간 동안 무역 및 재산 소득에 대한 회전율 한도가 비례 기준으로 감소합니다. CASC가 HMRC. claim 온라인을 통해 Charities Online 서비스를 사용하여 세금 상환을 청구 할 수있는 3 가지 방법이 있습니다. 직접 온라인에서 청구하십시오. 데이터베이스를 한 번에 1,000 명 이상의 기부자를 위해 제 3 자 소프트웨어를 사용합니다. 인터넷에 접속할 수 없다면 Charities Helpline에서 ChR1이라는 종이 양식을 주문하십시오. 스포츠 스폰서 십 및 외환 중개인 - 가치가 있습니까? 스포츠 스폰서 십은 지난 6 년간 온라인 트레이딩 부문에서 스포츠 스폰서 십으로 추정되는 3 억 명으로 많은 회사에서 효과적인 마케팅 도구로 입증되었습니다. Forex 및 2 진 옵션 브로커의 경우 잘 알려진 스포츠 성격 또는 국제 스포츠 그룹은 파트너십과 관련된 고비용에도 불구하고 인기를 얻었습니다. 중개인은 파트너와 긴밀하게 협력하여 연례 적으로 계약을 갱신하고 다른 스포츠 클럽을 후원하거나 스포츠 이벤트 매년. Forex와 스포츠는 둘 다 인격을 내기 위해 관객을 매료시킵니다. 이 차원에서 현금으로 바꾸기 위해 Forex 중개인은 축구, 야구, 폴로, 미식 축구, 자동차 경주 및 심지어 경제적 이익을위한 레슬링에서 최고의 인물들과 등록하기를 열망 해 왔습니다 올해 5 월, 소매 중개인 Orbex는 WODWARS CrossFit 피트니스 대회의 후원을 스폰서로 갱신했습니다. Elemace 역도 교육을 통해 스웨덴의 Halmstad에서 두 명의 저명한 CrossFit 선수를 후원 Global FX 중개 회사 인 EXNESS Group과 Infiniti Red Bull Racing은 경제적 인 홍보를 위해 수년간 성공적으로 협력 해 왔습니다. 스포츠 후원에 대한 이유는 여러 가지 이유가 있습니다 Forex 중개인은 스포츠 인물을 후원하기 위해 수백만 달러를 배정 할 것입니다 비용만으로 잠재 고객에게 힘의 메시지를 전달하고 중개업은 세계적으로 존경받는 팀 또는 인물과의 연합으로 신뢰성을 크게 끌어 올립니다 또한 글로벌 브랜드 인지도를 얻습니다. 스포츠 후원에는 문제가 있습니다 대부분의 공동체 정신은 Forex 상인의 중핵 인구 통계와 일치하여이기 위하여 믿어지는 우위하게 남성 경청자를 표적으로합니다 그러나 점점 여성 상인은 악 대차에 뛰어 오르고 있고 몇몇 후원자는 경청자의 좋은 백분율을 잃습니다 남성 전용 스포츠 피규어 사용 베네사 윌리엄스와 같은 테니스 챔피언 Forex 회사의 팀을 구성하는 것처럼 보이지 않습니다. 또 다른 문제, 그리고 아마도 가장 중요한 것은 거래가 부정확하고 오도 된 방식으로 종종 묘사된다는 사실입니다. 실제로 흥미롭고 재미 있고 스릴있는 거래가 이루어지기 시작했습니다. 처음으로 거래 계좌를 개설하는 사람들은 1 년 이내에 입금이 전부는 아니더라도 대부분을 잃을 것입니다. 실제 계좌에서의 거래는 기부를 찾을 수있는 장소가 아닙니다. 이러한 스폰서 십이 대부분의 Forex 회사에서 수익성이 있는지를 아는 것은 어렵습니다. FXPrimus가 중개인을위한 스포츠 공동체 정신에있는 가장 큰 거래의 한, 맨처스터시를 가진 그것의 후원 계약을 끝낼 때 예외는 지난 주 일어났다 예외를 제외하고는이 후원자를 개발하기 위하여 점점 많은 돈이 사용되고있다이다. FXPrimus 관계자가 제시 한 1 년 반 동안 1 500 만 달러는 회사의 마케팅 전략을 회사의 주요 측면으로 이동 시키기로 결정한 것입니다 FXPRIMUS는 현재 다른 스폰서 십 거래를 계획하고 있지 않지만 축구 스폰서 십이 글로벌 브랜드 인지도를 높이기위한 이상적인 방법이라고 인정했다. Cina Coren. Cina는 금융 서비스와 월스트리트 투데이에서 수년을 보냈다. , 그녀는 대부분의 시간을 쓰고 편집하고 책을 출간했습니다. 그녀는 5 ​​세의 어머니이자 많은 사람들의 할머니입니다. Forex 중개인 및 스포츠 이상적인 마케팅 콤보. 마케팅 계획의 힘보다 비즈니스에 더 중요한 것은 없습니다. 회사는 제품을 판매하기 위해 창의적이고 종종 터무니없는 기술을 사용할 때 아무런 제한을 두지 않습니다. 잘 알려진 유명 인사의지지와 글로벌 지원 전문가의 도움으로 회사의 이미지를 향상시킬 수있는 것은 없습니다 선수들은 최고의 선수들 사이에서 눈에니다. 2012 년 Sports Illustrated에 올라있는 상위 10 위 선수들이 집에서 가져온 이름들이었습니다. Forex 중개인은 뒤쳐지지 않기 위해 시류에 뛰어 들었고 국제 스포츠 인물에 의한 PR 곡예가 Forex 거래와 잘 작동한다는 것을 발견했습니다. 브로커 웹 사이트와 TV에서의 외모는 중개인 홍보에 상당한 성공을 거두고 있습니다. 최근 런던 기반 온라인 거래 플랫폼 인 UFXMarkets는 외부 센터와 전직 글로스터 럭비 틴들 (Touall)의 캡틴 인 마이크 틴들 (Mike Tindall)과의 파트너십을 발표했습니다. 성공적인 럭비 선수이자 개인 팀 코치로서의 명성은 UFXMarkets의 대변인이 될 것입니다. 트레이더와 맞춤형 일대일 코칭을 제공하는 소수의 온라인 중개인 중 한 명으로 그 이미지를 홍보합니다. 실제로 Tindall 경감은 UFXMarkets이 독점적으로 만든 자신 만의 맞춤형 거래 전략. 종종 전체 팀이 PR 담당자로 사용됩니다. 작년에 호주 외환 브로커 인 Easy-Forex는 전설적인 National Rugby League 팀인 Canterbury Bulldogs와 최종 홈 경기를 치르기 위해 시드니를 여행하기 위해 시드니를 최고 상으로 제안했습니다. 깔끔한 1 백만이지만, 큰 매력은 선수들을 만날 수있는 기회였다. 흥미롭게도, 시상식의 우승자는 시골 인도의 Parbahni 출신 인 29 세의 비즈니스 네트워킹 학생 Shivanand Swami였다. NBA의 New York Knicks와 New Jersey Nets 스폰서 십으로 유명한 Alpari의 다른 U 기반 중개인은 지난 2 월 수십억 달러의 파트너십을 체결했습니다. 웨스트 햄 유나이티드 (West Ham United)를 후원하기 위해 웨스트 햄 유나이티드 (West Ham United)는 알파 파리 (Alpari)의 영국 무역 지대를 방문하여 무역 경쟁을 벌였습니다. FXDD는 뉴욕시에 본사를 둔 외환 딜러로, 그것의 중개를 승진시키기의 방법으로 목표 Autosport에 ip 오늘 오늘 10 월에서 그것의 목표 Autosport 팀 FXDD 경주해서 2012 년 GRAND-AM Rolex GT 스포츠카 시리즈를, 이겼다. 스포츠 후원자를 가진 앞 주자는, 프리미어 리그 아스톤 빌라 풋볼 클럽과의 상업 파트너로서의 1 년 계약 프랭크 풋볼 클럽 (Fulham Football Club), 버진 포뮬러 1 (Virgin Formula 1) 등 많은 유명 스포츠 스폰서 십과 팀을 이뤄온 FXPro는 1 천만이 넘는 거래 팀, BMW 자우버 포뮬러 1 팀, IRC 랠리 팀, WRC 랠리 팀, FXPro 랠리 키프로스, 슈퍼 스타 일요일 골프 토너먼트가 있습니다. 그리고 사이 프러스의 주요 거래 및 투자 회사 인 AFX는 AFX 세일링 팀. 그리고 목록이 계속 올라갑니다. 이 유명한 스포츠 팀과 Mike Tindall과 같은 유명인 선수는 모두 국제적으로 인정 받고 있으며 일인칭 브랜드가되었습니다. 스포츠 분야에서의 스포츠 스폰서 십은 스포츠를 결코 할 수없는 나라 사람들에게 도달합니다. 확실한 것은 마케 팅과 스포츠의 결합이 많은 Forex 회사의 성공에 중요한 역할을 계속할 것이라는 것입니다. Cina Coren. Cina와 관련하여 금융 서비스와 월 스트리트 투데이에서 수년을 보냈지 만, 그녀는 대부분의 시간을 글쓰기 및 편집에 사용하고 여러 권의 책을 출간했습니다. 그녀는 5 ​​세의 어머니이자 많은 할머니입니다. 사생활 보호 인터뷰 준비. 전문 인력 채용에 대한 훌륭한 조언이 있습니다. Private Equity Recruiting Process에 대한 KEA Consultants의 확고한 컨설턴트. 사모 펀드 인터뷰 프로세스는 처음부터 끝까지 도전하고 있습니다. 대부분의 회사는 3 ~ 4 라운드 동안 후보를 인터뷰 할 것입니다. 그러나 10 라운드가 될 수있는 경우가 있습니다. 회사, 당신이 만나는 사람들의 수 및 관련된 테스트들 어떤 경우에는 당신의 언어 적 수치 또는 논리를 테스트하는 SHL 유형 테스트를 접할 수 있습니다 그러나 모든 후보자는 일반적인 CV 개요 인터뷰와 사례 연구 및 LBO 모델링 라운드를 준비해야합니다. 대부분의 중소 시장 및 대형 캡 인수 펀드는 후보자의 모델링 기술을 테스트합니다. 이 기술을 테스트 할 가능성은 적지 만 사설 투자에 관한 비즈니스 사례 연구가있을 수 있습니다. 모든 회사는 귀하의 상업성과 비즈니스 감각을 시험하기를 원할 것입니다. 엔트리 레벨 후보자로서 당신이 전환을 할 수 있음을 입증해야합니다 매도자 측에서 구매자 측으로 생각하고 투자자처럼 생각하십시오. 모든 인터뷰에서 잘하는 열쇠는 준비입니다 회사, 전문가 및 포트폴리오에 대한 숙제를하십시오 최소한 펀드의 규모, 그들이 투자 한 단계, 그들이 투자하는 부문 및 투자자 기반 과거에 회사가 투자 한 몇 가지 투자를 통해 생각할 가치가있다. 회사가 투자 전략을 개발 한 이유는 무엇이며 왜 투자를하지 않았는가? 인터뷰하는 동안 기회를 줄 가능성이 높기 때문에 인터뷰 대상 회사의 투자 전문가에게 질문 할 수있는 몇 가지 질문을 준비하십시오. 여기에는 투자 할 수있는 자본의 양, 회사가 한 번에 조사하는 거래 수, 회사가 최근에 투자 한 내용을 구체적으로 묻는 것에서부터 매우 다양합니다. 면접 과정을 통해 자신이 가장 효과적으로 행동 할 수 있도록 도와줍니다. 가장 기본적이고 중요한 사람입니다. 각 면접에서 5 ~ 10 분이 아니라면 항상 정시에 있어야합니다. 가능한 한 최선의 일정으로 인터뷰 일정을 정하십시오. 질문하기 당신의 면접 원. 소개와 출발에 대해 확고한 악수를하십시오. 항상 면접관과 눈을 마주 치십시오. 당신의 대답에 대해 신중하게 생각해보십시오. 너무 오랫동안 집중하고 집중하지 않고 생각을 되새기는 것. 분명하고 자신감을 갖고 동시에 겸손 해지고 너무 공격적이지 않도록 노력하십시오. 당신이 그들 자신을 팔고 있음을 기억하십시오. 반대의 경우도 마찬가지입니다. 이력서 인터뷰가 진행되는 동안 당신이 구체적으로 준비해야만하는 점들과 질문들입니다. 우리는 당신이 생각하기에 아래의 예를 열거했습니다. 이것은 포괄적 인 목록은 아니지만, 당신이 무엇을 기대해야하는지에 대한 감각을 줄 것입니다. 당신의 이력을 알면 질문에 대답 할 수 있어야합니다. 이력서에 기재된 사항 몇 가지 거래를 나열한 경우 발생한 일을 실제로 알고 있는지 확인하고 IRR, 부채 비율, 가격, 수입 등을 확인하십시오. 대학에서 이력서를 통해 2-3 분 안에 구조 연습을 연습하십시오 개요. 귀하의 이력서에 관한 거래에 대해 알려주십시오. 투자 은행 출신이라면이 질문을 분명히 기대해야합니다. 사모 펀드 투자자에게 가장 관련이있는 거래를 선택하십시오. 거래 유형. 왜 사모 펀드에 경력을 쌓고 싶습니까? CV에 나와있는 것처럼 자신의 경험, 기술 및 관련 이익에 대한 답을 맞추십시오. 회사에 관심이있는 이유는 무엇입니까? 회사에서 숙제를했다면, 이 질문에 쉽게 대답 할 수 있어야합니다. 함께 일한 회사에서 좋은 사모 투자를하고 왜 인터뷰하는 회사에 대한 답을 맞추고 왜 투자할지에 대한 재무 세부 사항을 준비 할 수 있어야합니다 LBO 모델의 메커니즘을 설명하십시오. 이를 통해 투자 전문가와 상담하거나 A4 용지에 간단한 계산을 할 수 있어야합니다. 연습이 필요한 경우 모델 테스트 페이지를 참조하십시오. 왜 EBITDA 및 사모 펀드 투자자에게 중요한 FCF 당신은 그 차이를 알아야하고 LBO를 위해 빌린 새로운 채무와 관련하여 이들이 어떻게 사용되는지 설명 할 필요가 있습니다. 얼마나 많은 부채를 회사에 넣을 수 있는지 결정해야합니다. 현금 프로파일 전자 및 채무 시장 현황. 어떻게 잠재적 투자를 얻을 수 있습니까? 섹터에서 매력적인 목표를 연구하고 식별하는 방법을 나타냅니다. 최근의 사모 펀드 거래가 발생한 곳을 생각해보십시오. 콜드 콜을 통해 업계에서 네트워킹에 대해 언급합니다. , 회의, 독서 무역 간행물 당신이 인터뷰하는 회사와 관련성을 유지하십시오. 사모 펀드 거래에서 관리가 얼마나 중요합니까? 그들은 매우 중요합니다. 훌륭한 비즈니스는 훌륭한 관리자가 필요합니다. 최근 뉴스에서 흥미로운 거래에 대해 말해보십시오. 귀하의 비즈니스 판단을 입증하기 위해 선택한 거래에 대해 명확한 의견을 가지고 있습니다. 사모 주식 업계 또는 회사가 다시 보는 특정 업계에 대한 귀하의 생각은 어떻습니까? 의견이 있습니다. 5 년 후에는 어디에서 볼 수 있습니까? 사모 펀드에 대한 당신의 야망과 헌신을 보여주십시오. 다른 몇 가지 일반적인 질문입니다. 당신에게 동기를 부여합니다. 실패한 시간에 대해 말해주십시오. 당신의 세 가지 주요 힘은 무엇입니까? hs 여가 시간에 무엇을 할 것인가 마지막으로, 개인적인 적합성은 중요합니다. 사모 펀드 회사가 다른 회사보다 규모가 작기 때문에 개인 적합성은 회사의 전반적인 평가 프로세스의 핵심 부분입니다. 인터뷰 중 자신이 되십시오. 지분 회사는 회사의 문화와 정신에 잘 어울리는 후보자를 고용하기를 원할 것입니다. 고용 된 경우, 집중적 인면에서 인터뷰 한 사람들과 일하고 강력한 전문적 관계를 유지하면 새로운 것을 얼마나 즐기는지가 결정됩니다 직업과 궁극적으로 당신이 얼마나 성공했는지. 왜 사모 투자가 우리 회사인가. 왜이 질문은 사모 펀드 인터뷰에서 물을 것입니다. 그리고 가장 잘 준비하고 좋은 경험을 할 수있는 대부분의 은행가 중 하나입니다. 모든 기술 면접 질문을 통과 시키지만, 많은 이유는 왜 PE인지, 왜 우리 회사인지에 대한 설득력있는 답변을 제공하지 못하는 것입니다. 사모 펀드 회사는 PE, 왜 우리 회사인가? 면접관은이 일을하는 뒤에 당신의 동기와 자신의 회사에 합류 한 뒤에 당신의 동기를 알고 싶을 것입니다. 그러나 사정은 실제로 생각보다 훨씬 복잡합니다 사모 펀드 회사는 사람들이 회사에 왜 명성, 장기적으로 좋은 돈, 더 적은 시간, 기업가적인 면모를 가지고 있습니다. 그러나 그들은 정말로이 질문들에 대한 해답을 찾고 있습니다 .1 당신을 전문적으로 그리고 개인적으로 이끌어가는 것은 무엇입니까? 2 당신은 회사에 관한 약간의 연구를 했습니까? 당신은 회사에 어떻게 도움이 될 수 있습니까? 4 장기간 머무를 것입니다. 질문에 가장 잘 답변 할 수있는 구조. 위에서 설명한 네 가지 사항을 직접 또는 간접적으로 다뤄야합니다. 질문 실제로 2 배 1 이유 PE와 2 왜 우리 회사? 그러나 대부분의 경우 동시에 두 질문에 답변하는 것이 가장 좋습니다. 예를 들어, 질문을받는 이유가 PE인지 묻는다면 대답 할 것입니다. 왜 우리 회사가 대답 할 때 다음과 같은 구조를 사용하는 것이 좋습니다 .1 왜 PE가 1 위와 4 위를 다루는 지 질문하십시오. 이 질문에 대해서는 전문적인 동기뿐만 아니라 개인적인 동기가 필요합니다. 개인 동기 기업은 보통 기업가 정신과 투자를 원하고 교장의 역할을하고자하는 열망에 중점을 둡니다. 훌륭한 이야기에는 기업가 가정에서의 유입, 기업 활동에 대한 증거, 위험을 감수하고있는 이니셔티브 등이 포함됩니다. 전문적인 동기 부여 이것은 대개 사모 펀드와 유사하거나 관련이있는 업무 측면을 중심으로 이루어집니다. 은행가와 컨설턴트는 사모 펀드를 통해 수행 한 업무를 언급하고 그들이 그것을 얼마나 즐겼는지 언급 할 수 있습니다. PE가 포함하는 업무를 아는 것을 보여줄 필요가 있습니다. 돈, 명성, 더 적은 시간, 또는 명백하게 나는 투자를하고 싶다. 또 다른 위험 영역은 개인 주식 거래를 언급하는 것이다. ock 거래는 단기적이며 PE가 아닌 헤지 펀드에 더 적합하므로 장기 보유 전략에 관해 언급하면 ​​언급 할 수 있습니다 .2 회사 주소에 대한 지식을 자랑하지 마십시오. 회사의 전략적 위치, 지리적 인 초점. 기금 모금 또는 대규모 신규 기금, 신규 사무소, 신규 파트너 확장. 그들이 수행 한 훌륭한 투자 또는 퇴출은 지식을 보여줄 수있는 알려진 세부 사항을 언급합니다. 일부 파트너의 경우 즉, 더 유명한 인물이 이름을 언급합니다 .3 회사에서의 넥타이는 기술 3과 4를 가리 킵니다. 이것은 가장 힘든 부분입니다 - 회사의 전략을 기술에 연결해야합니다. 이 부분은 각 개인마다 다를 것입니다 하지만 이것들이 가장 일반적인 이유입니다. 자금 확장 전략에 연계 된 언어 기술 예를 들어, 프랑스에 여러 투자를했고, 프랑스 연사로서, 저는 그 중 일부 포트에서 일하고 싶습니다. olio companies 또는 3 개의 유럽 언어를 사용하므로 전 유럽 포커스를 좋아합니다. 섹터 중심의 섹터 경험 예를 들어 세 가지 미디어 거래에 참여하여 실제로 즐거웠 기 때문에 일하는 것을 정말 좋아할 것입니다. 당신과 같은 TMT 중심의 사모 펀드 회사에서 관련 사업 경험을 발휘합니다. 예를 들어 저는 투자 은행 업무와 여러 개인 투자 고객과 함께 3 년 동안 일해 왔기 때문에 귀사의 강력한 명성을 잘 알고 있습니다. 비즈니스 통찰력 또는 믿음 근본적으로 이것은 PE 회사가 좋은 위치에 있다고 믿는다는 것을 말하는 것이고, 그래서 당신이 그들과 합류하기를 원하는 이유입니다. 그들의 강한 실적, 좋은 포지셔닝, 훌륭한 경영, 그리고 모든 성공 요인을 언급 할 수 있습니다. make you want to join them. You will get bonus points if.- You reached out to the PE firm directly without going through headhunters shows initiatives, credibility.- You get championed by somebody working at the firm alumni, friend If you got recommended, do mention this fact.- You worked on a deal with the firm as a banker or consultant, provided you did well.- You dealt with companies they thought about buying bankers and consultants check the all bidders for the deals on your CV. Private Equity LBO Modelling Test. Most Private Equity firms will give you modelling tests to complete realtime at their offices from scratch Without practice, this can be challenging, even for seasoned investment bankers Here are a few tips and an example of a test you will likely get. LBO Modelling Tips. Tip 1 Spend enough time to understand all the requirements properly. Read in detail the information provided, as well as what is asked Often, candidates fail to answer the question asked by trying to do too much or waste time as they add complexities that are not required. Tip 2 Always keep models simple. Do not try to show off by building complex models and advanced functions Build a practical model that answers the qu estion only if you have enough time, then add a few more advanced functions or clean up the formatting, but this is not necessary. Tip 3 Watch your time, and if you are running out of time, simplify. If you get stuck on a point, just simplify it at minimum, provide an IRR output If you build only half of the model, then your ability to build a full LBO cannot be judged But if you take a shortcut on some parts but still build the full LBO and IRR calculations, you might be able to get away with it. Tip 4 Have a well-practiced template in mind. Make sure you have a very well-rehearsed basic template in mind with the following items.- Simple Source and Uses table one or two branches of debt Input your entry exit multiple assumptions here.- Basic income statement Revenue, EBITDA, D A, EBIT, Taxes, Interest, Net profit - that s it Leave Interest blank and link it later on from your debt schedule.- Cash Flow Statement EBITDA, Capex, Working Capital, Tax, Debt Repayments and Interest Paid You cou ld model Working Capital and Capex separately in a mini-balance sheet for added details Leave Debt Repayments and Interest Paid blank for now and link from Debt Schedule later.- Debt Schedule Here you need to detail the Debt Repayments and Interest Paid You can then link those to the Cash Flow and P L.- IRR Calculation The cash flows should come from your cash flow statement and you only need to insert the IRR Calculation here You should also insert some sensitivity tables for different exit years and different entry exit multiples. LBO Model Test Example 2 hours. For practice, try to solve this case. LBO Model Assumptions.1 A Private Equity Firm wants to acquires a German business for 280m any Advisory Fees equivalent to 2 of the transaction value Assume a transaction date of 30 June 2012 and no cash.- Senior debt of 3 0x EBITDA at transaction date has been obtained from a regional bank.- The seller has also agreed to provide an additional 35m in the form of a vendor loan.- The private e quity firm will invest the balance in the form of a shareholder note.3 The Senior Bank Debt pays 7 per annum cash pay , with this repayment plan in place 5 repaid in year one, 15 in year two, 20 in year three, 30 in year four, and 30 in year five.4 The Vendor Loan pays 8 non-cash which accrues annually This vendor loan is subordinated to the bank debt.5 The Private Equity Firm shareholder loan pays a 15 non-cash pay coupon, which accrues annually This loan is subordinated to the senior bank debt and to the vendor loan.6 The Company needs to maintain a minimum of 1m operating cash at all times Assume a full cash sweep for any amounts above 1m.7 The Private Equity firm wants to maintain control of the company and at the time of the acquisition will have 85 shareholding in the company, while the management will retain 15.8 Sales at closing were 100m assume this will grow by 5 in year one, and 7 p a thereafter.9 EBITDA margins will increase from 35 , and increase by two percentage points p er year until 2017.10 It is thought that Capex over this period will be 15m per annum equal to depreciation.11 The Company has 10 days of sales funding gap in working capital.12 Tax will be charged at 30.A What is the Private Equity firm IRR, and cash on cash returns at 7 0x, 8 0x and 9 0x EBITDA exit multiples in years four and five. B What are the returns if you assume senior debt of 2 5x and 3 5x EBITDA What are the issues that we need to consider in deciding the necessary level of bank debt. C What is your recommended level of bank debt. D Which EV exit is realistic given the data provided, and what return would you expect. E What kind of return should you be looking for with this kind of business. F What is the benefit of a vendor loan. G What would be a sensible strategy you would adopt with regards to the vendor loan in two or three years. H How much of the exit proceeds will go to shareholders and how much will go to management. For a fully worked out answer, please refer to the LBO Mo del. Ideal Backgrounds for Private Equity. There is no standard way of entering the Private Equity industry, but this article aims at illuminate the typical characteristics that private equity firms are looking for in a candidate. What age or level of experience do private equity firms want.- The large majority of people joining private equity firms do so after two to five years work experience in a relevant field such as investment banking, strategy consulting, corporate development, or restructuring.- It is very unusual for people to join a private equity firm right after graduation from university with an undergraduate degree The main reason is that most private equity firms are small and do not have the ability to train people within the firm Notable exceptions include the very big private equity firms such as Blackstone, who sometime hire from straight from undergraduate degrees - but note that the students being considered have typically worked through several internships in banking , strategy consulting, restructuring, or at other private equity firms.- A common route to enter private equity is right after an MBA more common in the US Similarly, this implies two to five years prior experience in relevant fields.- Age is always a sensitive topic, but most private equity firms like to hire people below 30 for an entry position. What are the typical educational backgrounds.- Private equity is notoriously picky about educational backgrounds, are will usually target graduates from top universities In Europe, there is a strong representation from schools such as Oxford Cambridge in the UK, HEC Essec in France, etc The reasons are that they have a large choice of applicants so the school is an easy first screening ground, and also because the networking aspect of private equity is quite important who you know matters Note that the name of a good school is not enough and is often just a pre-requisite If you are not from one of those top schools, however, it is still possi ble to break in if you have outstanding work experience, skills, or achievements.- For MBA degree earners, Private Equity is also very picky, even more than for undergraduate degrees The very large majority of MBAs in private equity in Europe come from three schools Harvard, Wharton, and Insead also Stanford in the U S.- While you don t need to be a finance major, your degree should demonstrate strong analytical ability Science and finance degrees tend to be popular. What are the typical professional backgrounds. On top of a great education ideally with top grades and lots of extracurricular activities , Private Equity firms like to see prestigious company names and impressive transactions in your background The most common backgrounds are these.- Investment bankers usually from second-year analyst to first-year associate levels Why Because of the excellent modelling training, transaction management skills, ability to work extremely hard, and sometimes sector knowledge The rule of thumb is that the larger the Private Equity firm is, the more demanding they will be in terms of investment bank prestige The large majority of ex-bankers in private equity come from Goldman Sachs, Morgan Stanley, ex-Lehman Brothers, ex-Merrill Lynch, Rothschild and Lazard Some private equity firms will ask for your analyst or Associate ranking the more deals you have done, the better You can still break in from smaller banks but you will need some really impressive transactions or other specific skills.- Junior Strategy consultants Why For the strategic thinking ability, ability to work very hard, and sector knowledge Consultants are a bit less prevalent than bankers in private equity because they usually lack a bit in modelling skills, but people working at firms such as McKinsey, Bain Co and BCG will have a good shot at private equity jobs, especially if they have worked on private equity due diligence assignments Some PE firms like Bain Capital focus on hiring strategy consultants as opp osed to bankers.- Others depending on the firm, private equity companies may hire qualified accountants from the Big 4 if they worked on private equity deals with a very UK-specific background , talent from restructuring, and sometimes people with a bit more unconventional backgrounds i e equity research, ECM, corporate strategy. What other characteristics are private equity firms looking for. On top of a great education and a great work experience at a top firm, private equity firms would really like to see these characteristics.- Languages The more you speak fluently, the better You can significantly increase your chances if you speak two or three European languages fluently, and in most cases English another European language is required Hot languages include Nordic and Eastern European languages German, French, Italian, Spanish and Dutch are also very useful.- Extracurriculars To make you stand out from the rest, extracurriculars such as athletics or art are very useful, especially i f they are impressive Anything that shows that you are a well-rounded person is often required.- Entrepreneurial drive and leadership Anything that shows that you are a driven person who likes to show initiative can apply, such as the position of a club president, organising charities, etc. Private Equity Psychometric Tests. After applying for a job at a Private equity firm, sometimes you will be sent several online psychometric tests These tests help companies to weed out candidates before starting the actual face-to-face interview process and are becoming more and more common with large private equity companies On average, more than half of potential candidates do not pass this stage, usually as a result of lack of preparation In order to get a good score on these psychometric tests it is essential to remember that preparation is key. The good news is that companies will always let you know that there will be a test, and it will almost always be an SHL test. SHL is one of the most popula r and well-known assessment companies in the world Major Private Equity companies rely on companies like SHL to provide psychometric tests for job candidates. You can practice SHL aptitude tests just like the ones used for actual job assessments here. The Tests Explained.1 A Verbal Reasoning Test. Verbal Reasoning Tests are designed to measure your ability to understand written information and to evaluate arguments pertaining to this information You ll be presented with a paragraph of text or excerpt and will need to use logical and comprehension skills to answer specific questions You can get Verbal Reasoning Practice Tests here.2 A Numerical Reasoning Test. Numerical Tests are designed to assess your understanding of statistical and numerical data as well as your ability to make logical deductions You ll be presented with a table or graph depicting specific numerical information and will need to answer questions about the data The questions are often based on mathematical calculations in volving percentages and ratios You can get Numerical Reasoning Practice Tests here.3 An Inductive Reasoning Test. Inductive Reasoning Tests are designed to test conceptual and analytical thought based on pattern and consistency identification You ll be presented with a group of images and shapes that follow a particular chronological pattern and be asked which image is the next in the pattern.4 A Personality Questionnaire sometimes. The purpose of Personality Questionnaires is to assess specific character traits of applicants to build a personality profile Companies then compare this profile to the requirements of the company and the requirements of the particular position Personality Questionnaires will often claim that there are no right and wrong answers but that is obviously not true, as there are specific answers that point to either positive or negative characteristics that have a big effect on whether or not you ll get the job. How to find out more and get some practice. The only wa y to practice is to do mock tests online You can find some free samples or purchase more practice, if needed, via the following link. Walk me through an LBO model. An common question you get during private equity interviews is can you please walk me through an LBO feel free to make your own assumptions While this may sound a bit daunting at first, the trick here is to keep things simple The theory behind an LBO is actually fairly simple. In what level of detail should you go What the interviewer is trying to test is only that you have a good understanding of the mechanics of an LBO, so there is no need for you to go into a lot of details Details will come during the LBO modelling test Here is what you should be able to understand and the steps you should take. If possible, lay out some assumptions on a piece of paper. Step one Lay out the Sources and Uses assumptions assumptions and some example company. Lets assume we have an consumer retail company My first step would be to lay out some assumptions with regards to source an uses.- I need to know how much I will pay for the company This can be expressed as a multiple of EBITDA Let s assume 8 times of current EBITDA, which I think is a reasonable current sales are 500 and EBITDA margin is 20 , then EBITDA is 100, that means 8 100 800 is what I need to pay.- I need to know how much of that purchase price will be paid in equity and how much through debt Lets assume that I will use 50 of debt and 50 of equity So that means I used 400 of equity and 400 of debt.- Also, lets now assume that we will sell this company in 5 years, at a same 8 times EBITDA multiple. Step 2 Make some basic cash flow assumptions. Now I need to know about the financial forecast to see what the cashflow looks like and see how much of debt I can repay over the period My cashflow before debt repayment is calculated as EBITDA - Capex - Changes in Working capital - Interest paid on the debt - Taxes. Here you may be asked to go into detail of how you come up with each number, or you may jump some steps - interviewer will guide you. I assume EBITDA can grow from 100 to 150 over five years Then lets say that based on those forecasts, I am able to repay 20 of debt per year you may be asked to derive the amount you can repay based on the details you calculated above , that is 100 over the next five years. Step 3 Calculate your IRR.-I have spent 400 of equity and taken 400 of debt.-After 5 years, EBITDA is 150, and assuming I can sell at a 8 times multiple, I will get 150 8 1,200 From that 1,200, I need to repay the 400 of debt but I already repaid 100 over the last 5 years, therefore I only have 300 left to repay That leaves me with 1200 - 300 900 of equity.-My overall return is therefore 900 400 2 25x return over 5 years, which is roughly an 18 IRR to be able to estimate IRRs, you need to memorise IRR conversion tables. For more advanced private equity LBO modelling practice, you can als o refer to our tips and LBO practice example. The number of executives with MBAs is increasing. By looking at the younger executives in the firm, there is also clear evidence that the MBA is becoming increasingly popular amongst the new generation of buyout executives. Among MBAs, five schools provide the vast majority of PE professional graduates. Five schools provide more than 80 of all the MBA graduates who work in private equity Wharton, Harvard, and Stanford are provided from the U S and in Europe, Insead and LBS PE firms tend to hire their own kind, so the PE MBA community is a very closed circle If you are interested in our MBA essay review service by alumni from top business schools, please get in touch at. Headhunters for Private Equity. While PE firms tend to recruit people through their network first e g alumni, bankers they worked with, friends and ex-colleagues before going to headhunting firms, here is a list of the well known headhunters in London that have a specialised priva te equity practice. Specialist Recruitment Consultancy managing permanent mid to senior level appointments within Corporate Finance Clients range from top tier Investment Banks and Boutiques to Private equity houses in London. Contact Name Jade Sweeney. contact phone 44 0 207 936 1125.Dedicated stand alone Private Equity team with a track record and experience of the sector for over a decade Principal, Senior Associate, Associate and Executive level mandates taking a pure search methodology for every mandate Mandates are UK, CEEMEA and MENA focused Nearly half of placements in 2012 were outside of the UK Source candidates from Investment Banking M A, Leveraged Finance and Financial Sponsors , lateral Private Equity professionals and Management Consultants. Contact name Adam Cairns. contact phone 44 0 203 762 2023.Blackwoods is a London-based search firm that recruits for a large variety of finance and non-finance roles, but they also have a good recognition in the London private equity recr uiting space. EH Partners is a London boutique executive search firm focussed on the alternative assets space and investment banking. Contact Name Simon Hegarty. contact phone 44 0 203 432 2552.Kea Consultants is an executive search firm that specialises in moving young professionals from top tier investment banks and consultancies into the buy-side They work on an exclusive basis with firms such as Blackstone, TPG, Advent Och Ziff and have strong relationships with a number of other funds ranging in size. contact phone 44 0 203 397 0840.Pure finance-focused firm with a good presence in private equity and hedge funds. Contact name Chris White. contact phone 44 0 207 887 7500.Private Equity Recruitment PER focuses exclusively on investment-related functions such as Private Equity, Venture Capital, Mezzanine Capital, Fund of Funds and Secondaries They mainly cover Europe and Middle East. Specialist financial services search firm providing global hiring solutions to clients across a wide range o f product areas within the investment banking and financial services sectors. Contact Name William McCaw. contact phone 44 0 207 090 7575.Large recruitment firm based in UK They cover mainly Europe out of London but also have some presence in Asia-Pacific through their Hong Kong office They recruit for Banking and Private Equity. Walker Hamill is widely recognised as one of Europe s leading recruiters in private equity, venture capital, real estate, secondaries, fund of funds, mezzanine and hedge funds It recruits for investment positions from Associate to Partner level and infrastructure roles including finance accounting, fund raising, investor relations, compliance and portfolio management. Contact James Stephens. Would you like to add your firm, contact name or other details to this list Contact us here. PE Interview How to Differentiate Yourself. It is not unusual for Private Equity firms to receive thousands of CVs per year, and even more for the major funds Similarly, investment profess ionals tend to get bombarded by emails and calls requesting information and help to secure an interview So, how can you differentiate yourself amongst all those CVs.1 A mere Oxbridge Ivy League degree work experience at top firms doesn t cut it. In Europe, Private Equity firms may only hire 100 or so new associates every year in total The top firms may only hire for one dozen positions per year, maybe less To illustrate what you are up against, the Private Equity clubs from Harvard and Wharton have more than 800 members each If you add to that number the analyst and junior associates classes of Goldman Sachs, Morgan Stanley, McKinsey, Bain Co, etc you will be very quickly in the several thousands of well-educated, well-trained candidates who will compete against you for a handful of jobs.2 Find a marketing angle that makes you unique. Your marketing angle will come from different dimensions.- Geography Obviously, language is a big differentiator in Europe But only talk about the language s you speak fluently or the regions you actually worked lived in Then reach out to people from those regions when sending your CV, and mention this clearly to the headhunters Note that if you speak a language but never worked in the country, that may be a handicap, so you need to mention that you spent a number of years in said country.- Sector expertise Very useful for sector-focused funds or funds organised in verticals.- Specific deal exposure Mentioning transactions where you either worked with the private equity fund or where it was an under-bidder is a good angle to start a discussion with a PE fund, as they will be able to test your understanding and abilities very quickly This may backfire though - make sure you know the deal inside and out.- Transaction types If you work for a boutiques or mid market of focused banks or consulting firms, this will be well received by small cap and mid-market funds.- Educational background Use your alumni base as much as you can, but don t limi t yourself to your own school For example, a top MBA is likely to be well received by somebody from another top school.- Company alumni Similarly, reach out to people who worked at the same firm than you Again, you don t need to limit yourself to the same firms For instance if you worked at McKinsey and you are reaching out to somebody who worked at a rival firm, it is still more likely to work than reaching out to an ex-banker.- Other connections Ex-military, specific background i e if you studied medecine, law, etc , same associations, etc. If you build your profile along those verticals, you will now see that you can differentiate yourself effectively and make yourself much more memorable to the firms.3 Tailor your CV and angle to different firms. I would advise against sending generic CVs to every firm or headhunter, hoping that something will fit your profile You need to target funds, and then tailor your message accordingly For example, if you are in a specific sector team, try to diversify your CV if you apply to a generalist fund i e less detail about the sector deals, highlight some other experiences, etc If you apply to an all-British fund, there is no need to mention your international experience or language abilities at length, etc.4 Personality is the ultimate differentiator. All the above advice will help you get to the interview stage However, in the end, the fit is what really differentiates one candidate from another, all else being equal i e same performance in the technical tests, modelling tests, etc, which is under your control if you practise At all times during the process, do not forget to maintain a well-mannered and humble attitude, which, surprisingly, is an area where many candidates fall short If you have the right profile and manage to differentiate yourself, build a story, maintain the right attitude and prepare, getting a job in private equity will just be a matter of time. How to Cold Email PE Professionals. The best strategy to find a jo b in Private Equity is often to reach to those firms directly, especially if you feel that there would be a good fit between your background and the firm In addition, headhunters are very selective when sharing job opportunities in PE so you might miss out on a potential interview Sending cold emails is widely accepted in the PE industry, and if the email is properly crafted, you should be getting an answer in most cases So find below a few strategy tips for cold emails to Private Equity professionals. Make a list of your priority target firms that make most sense. Create a big spreadsheet with the list of all PE firms that might be relevant and that come to your mind, or that you ve come across. Narrow down to a set of priority firms 7 to 10 firms maximum that you think would be the best fit and most relevant to your background Sending proper cold emails is actually quite time-consuming, which is why we recommend to focus as much as possible initially. Identify the best contact person s. S eniority We would recommend that you avoid reaching out to a very junior person, or one at your same level, for a number of reasons they are the busiest, there might be a fear of competitors, a lack of incentive to help , or to those too senior most won t care or have time The ideal people are at the principal , director or vice-president levels, because they are senior enough to have a say in the recruiting process but still junior enough to take time to answer candidate emailsmon background check out the websites of the firms and review the biographies of the people working there to get an idea of their backgrounds From the background descriptions, try to find the persons who are most similar to you people who worked at the same firms, same country of origin, same school, same kind of work experience or educational background, etc. LinkedIn LinkedIn is very powerful tool for identifying potential contacts, and researching people s backgrounds and potentially common friends Always do a search on LinkedIn for your target firm as you might also find people who are not listed on the website. HR Some PE firms have HR departments However, I would actually advise against sending your CV directly to HR if you find some other suitable contact in the firm, as HR s candidate criteria are usually narrower compared to investment professionals, which means less of a chance to get an interview. Structuring the email. Never write a cold email that is more than one or two paragraphs long Most people won t take the time to read longer emails, and it also shows that you are not able to write concisely Get straight to the point and attach a CV. We recommend the following structure. First sentence Your background basic key relevant points optionally how you got their details, if it was an introduction from a friend. Example Hello Mark, I am a second-year analyst working at Morgan Stanley in the Consumer team here in London, and I m from Germany I also speak Spanish. Second sentence Purpose of the email asking to discuss CV. Example I m very interested in Private Equity and your firm in particular, and I was wondering if your firm had any expansion plans in the short or medium term I would be happy to have a quick chat at your convenience I m attaching my CV for reference Best regards. Other reasons I read that your firm just raised a fund just opened an office in Munich , etc. Usually the person will open the CV and take a five-second look to see if your profile would fit If it doesn t fit, they might say that they are not hiring, or simply say that you don t have the required profile You might also get a standard reject email If it fits, they might reply that they are not hiring if they are indeed not hiring, and keep your CV on file They might also accept a quick phone chat to do some informal pre-screening process, or they might even ask you to come in for an interview. What if I get ignored. There might be a good number of reasons why you get ignored, not always negative - people travel, miss emails, forget to reply, etc If you don t get a reply within a week, it s perfectly find to send a reminder email Hi Mark, I wanted to follow up on my previous email, happy to have a chat whenever convenient Thanks One reminder email is enough and we would not advise to go beyond that If you still don t hear back, try another person or two in the firm You have nothing to lose by trying, but we would advise against trying more than three people in the firm. Track your progress, persevere, and be consistent. Do maintain your spreadsheet and make a note of each rejection, each email sent, and person contacted so that you always know the status of your attempts Private Equity recruiting is a long - term game. If they said no - don t waste your time and move on to other firms in your list. If they said that they are not hiring now, try again in six months time, or whenever they do a fundraising fundraising usually means expanding the team. If you need to contact the firm again , contact the same person. Once you have been through a few firms within your priority list, start investigating firms outside your top priority. As you read the press, work on deals, talk to friends, etc Don t forget to add to your list any interesting PE firm name that you come across. Private Equity Case Studies. If you get invited to Private Equity interviews, you will almost always encounter Private Equity case studies PE case studies can be notoriously difficult, and require a great deal of preparation While every firm will have different types of case studies, this article aims to give you an overview of what you should be expecting. What is a case study. Case studies are investment problems that you will be asked to analyse Based upon your analysis you need to propose a final recommendation should they invest in this company or sector At what price. Why do private equity firms use case studies. Case studies are great because they enable the interviewer to assess several aspects of a ca ndidate. The ability to absorb a large quantity of information and focus on what is relevant. The ability to structure your thoughts and analysis. General business acumen. Pure problem-solving skills i e intelligence. Analytical skills calculations are always involved. Presentation and communication skills you will be asked to present a solution. Excel modelling PowerPoint. Time management skills. At what stage of the interview process do I get case studies. Usually after the first round of interviews, but sometimes in the very first round. How are they given How much time do I have to work on case studies. Case studies can take on several forms, but these are the most common.1 Take-home case studies The firm will send you a case via email and give you a few days to complete it, then send it back in a Word document with your Excel model.2 Mini-cases at the firm, in person, as a live discussion In this case, there is no Excel model or you may be asked to do a back of the envelope model on paper and the discussion generally lasts between 45 minutes to an hour.3 Full-blown cases At the firm You are seated in a room with a computer, given the case study, and allowed between one hour to four hours to complete your analysis and Excel model. Can you give me an example of a Private Equity case study. The ingredients of a case study are always the same, irrespective of the format.1 Description of a company and sector This can be a few summary lines or slides, or in full-blown case studies, they could either give you a company annual report or an Information Memorandum IM.2 Financials These can be a few key items i e revenue, EBITDA, Capex or you can get a full annual report or IM. Based on this information, you should be able to analyse the company, build an LBO model, and answer the following questions. Is the company an attractive investment or not. How much should we pay for it. For case study practice please refer to our private equity case study here. List of London Private Equity Firms. B elow is a list of Private Equity funds that have offices in London and have a significant European presence We broke down the list in generalist funds that cover all sectors across difference geographies, sector specialists , specific region-focused funds and finally Private Equity funds within investment banks Note that the list below covers only the major funds and doesn t include venture capital funds and other Private Equity funds that have less than 500 million of assets under management. Generalist Funds with London-based operations. Preparing your CV for Private Equity. If your ambition is to work for a private equity fund, not only must your resume go past the headhunters, which are notoriously picky about who they send for PE interviews, but it needs to get you a foot in the door of PE funds Tailoiring your CV is a critical part of the application process, because it will be used in the numerous steps that will follow if you are invited for a first round interview In the UK, Priv ate Equity funds will typically look for the following qualities in your CV. Business Judgement Strategic perspective and understanding Interest for investing Raw intelligence Analytical skills Knowledge of finance, accounting and modelling Strong communication and social skills Existence of network or potential network, and pedigree Leadership and maturity. Therefore, to be invited for a first round interview, you need to bring out each of those qualities on your resume Of course, funds differ in size, investment strategy and culture, so some funds will look for some specific qualities in more details compared to others. Guidelines by fund type.- The large private equity funds with 1bn or more in asset under management such as Goldman Sachs PIA, Morgan Stanley Private Equity, Blackstone, Carlyle, etc will tend to focus on your LBO modelling skills This is particularly true for private equity funds with teams composed of ex-bankers so check their websites and you ll know what to expect.- Consulting-type funds that staffed mainly from ex-strategy consultants from McKinsey, Bain Co or BCG such as Bain Capital will look at your strategic thinking abilities and your business sense Therefore, showing a good understanding of the rationale of a transaction is extremely important to them Expect consulting-style case studies at the interview.- Small and mid-market funds will be more focused on your personality and cultural fit with the firm This is because for smaller firms, relationships are key and you will be working very close with management teams of potential target and portfolio companies. What to write in my Education section.- List any outstanding scores and significant scholarships mention the amount - Mention any meaningful Club affiliation that are relevant to investments such as Investment Club memberships, Private Equity or Asset Management Club, etc Be careful however, trading and picking stock is not what private equity companies do, they are looking at the long term, so do not mention that you are a member of a Sales and Trading Club - Any leadership positions you ve had is a strong positive as it shows leadership, maturity, good social skills and ambition - Finally, do not mention anything that is irrelevant i e member of the Cooking Club or indicates a lack of focus ie Marketing Club, Consulting Club. Its generally a negative not to be from Oxbridge Ivy League, but the way to compensate for this is to have very high grades, a very good work experience at top firm i e bulge bracket, top consulting firm , or a unique angle such as rare languages Nordic, Turkish, Eastern European, etc , deep sector knowledge or special achievements. What to write in my Professional Experience section. Applicants with banking experience need to bring out deal experience on the CV The best deal experience from PE funds perspective is having advised a fund on a successful acquisition, and any experience in financing and leverage-finance work Beware they will grill y ou on those transactions Also highlight sell side, buy side, IPOs, etc that you have done, but give less details than for your Private Equity-related deals. Applicants with management consulting experience need to bring out operational expertise You will score a lot of points if you worked on due dilligence assignments with PE firms Also highlight any financial modeling you may have done, as the main drawback of consultants is their lack of experience at building LBO models. For all applicants, depending on the fund you are targeting, highlightings sector knowledge may be a good or bad things Some funds prefer generalists, while some funds will want to hire you for a specific sector team i e FIG, TMT Just make your due diligence on the fund you want to apply to, and tailor your CV accordingly. PE funds clearly favour top-tier firms, and especially US banks and McKinsey, BCG and Bain Co, and they like to hire people who they worked with on transactions Applying from a second-tier bank will definitely be a challenge and a from a third-tier and small firm an major struggle , but it can be overcome if you have solid deal experience or can excel in other areas, especially in terms of education, languages, and fit with the firm s culture. What to write in the other interests section. Many applications to PE funds have very similar CVs prestigious firm, very good schools, and couple of interesting transactions In the end, you need to have a special flavour that will make a difference Here is a checklist of good things to bring out.- Activities pursue at a high level for example, sports are always a good things to bring out if you ve played at a professional and semi-pro level It is not uncommon to see PE professionals who climbed the Everest, won a medal at the Olympics games, or regularly run marathons.- If you have any burning passions, mention them, but only if you are a genuine expert and received tangible and impressive recognition for it i e prizes, mentions in the press. - Language skills and citizenship are always valuable for big pan-European or global funds For pure UK funds, be careful as this may well be a handicap, unless they have explicitly require somebody with a specific language.- Community service is often a plus, but not required more of a tradition in the US. Other General Tips.- Get your CV reviews by pople that have PE experience, if you can Only work with a few people you trust as getting too many reviews can be confusing.- Say the truth PE interviews are typically very detailed and in-depth , so there is no room to make up anything Also remember that the PE community is a very small world, and stretching the facts will easily spread to the other funds and other potential employers.- Prioritise your experiences Take out anything that is not relevant out of your CV, and focus on the most relevant experiences, and go into details Omit anything that was too short or that you would not be comfortable talking about.- Use action phrases and n ot passive ones I was part of a team is not good - tell them what YOU were doing.- Always make your due diligence on funds by checking the press, recent deals, checking bios and googling the people you are going to meet.- You can always anticipate at least 50 of the questions that will be asked about yourself and your CV PE equity interviews are hard to get, so spend meaningful time preparing to make the best of it. Private Equity Interview Process Explained. Private Equity recruiting tends to be much more informal than banking or consulting, however there are some very common steps that most Private Equity firms take for interviews A typical process in the UK or Europe in general is described below For more detail on each step, please check our detailed posts on technical questions, case studies, and psychometric tests. The early rounds first one or two interviews psychometric tests, fit questions, mini-case studies and random technical questions. These are numerical and verbal tests most often SHL tests, examples here designed to complete a first cut in the applicant pool Anything between 30 and 50 of the applicants can be rejected at this stage, sometimes more, depending on the pass threshold Sometimes, you will also be given a personality test Make sure to ask if you will need to take these tests, as you will need some preparation.- Fit and CV questions. These questions involve having to first introduce your background, walking the interviewer through your CV, and acing questions like, Why private Equity and Why our firm Needless to say, you must have rehearsed this extremely well, as this is probably the most important question you will be asked in the interview.- Mini-case studies and investment cases. Usually, private equity firms like to give small case studies to judge your business sense, gauge your understanding of the way companies operate, and to test your understanding of what drives return in an investment This may consist of a SWOT analysis on a particular firm very often one of their portfolio company , an investment rationale analysis, or asking your opinion on specific industries or firms This could be a simple question, such as Do you think an airline would be a good investment or more detailed questions with supporting data and charts that you will have to analyse Very often, if you are a banker and have worked on a deal, they will ask you your views on the deal and whether you think it made sense. These accounting or LBO questions are nothing too difficult for a seasoned investment banking analyst, but be ready to discuss how you build an LBO, estimations of IRRs, and various types of debt instruments without hesitation. Later Rounds if you passed the early rounds full-blown LBO Modelling Test or Case Study test. This often involves a full-blown LBO modelling exercise and investment case analysis based on an Information Memorandum or a case study provided by the private equity firm You will be given a laptop or be in a room with a de sktop for a couple of hours one to four hours depending on the firm to prepare a model and some slides based on the information provided You will then need to present your results to senior members of the firm Again, if you are an experienced analyst and if you get some LBO modelling practice this should not be too difficult. Before the interview, make sure you practice creating simple LBO models from scratch You should be able to pull together a simple LBO model in less than one hour, starting from a blank page, by making reasonable assumptions. Final Round the likeability test. Most firms will do a dinner or drinks with the most senior partners in the firm in the final stages with the CEO himself or the company head , so that you can get a final stamp of approval Anything can be asked some firms may try to drill down on your perceived weaknesses and ask more fit questions, you may just have a pleasant and simple chat but don t be fooled, every answer will be scrutinised , or you may be asked a lot of very personal questions At this point, everything will come down to your personality, your career goals, and how likeable you are as a person. As a rule of thumb, smaller firms tend to be less technical and the interviews largely based on fit and personality, while larger firms Blackstone, Apax, etc tend to spend much more time testing your technical skills However, most firms will require you to meet everybody or at least 90 of the people in the fund, so be prepared for a very lengthy process that may last several months - and expect at least three months from start to finish. Private Equity Career Track. Getting a job in private equity is often seen as the holy grail of finance However, once you have made your way into a private equity fund, how will your career evolve, and how do you make it to partner The traditional career progression in private equity is detailed below. Analyst or Pre-MBA Associate.-These are typically pre-MBA candidates hired from the investment banks, strategy consulting firms or accounting firms They usually have two to four years experience maximum.- The job involves mainly prospecting cold calling, screening sectors for interesting companies, etc as well as investment analysis This involves reading Confidential Information Memoradum CIM and other company data, working on financial models and writing investment memos for the investment committee.- After two years, sometimes there is a promotion to the senior associate level, but often the analyst pre-MBA associate will leave to either pursue an MBA at a top school or change career path i e entrepreneurship, hedge funds, corporate development, or another PE fund.- Compensation mostly consists of base pay bonus. Post MBA Senior Associate.- These are often hired right out of business school or one to two years after graduation from business school These professionals have three to six years work experience in investment banking, consulting and private equity.- Senior Associates can e xpect to reach Managing Director Partner level within six to eight years.- The work includes taking full responsibility for deal screening and modelling during the execution of a deal Most of their time is spent managing advisors such as investment banks, lawyers, and accountants.- Compensation mostly consists of base pay bonus, sometimes with a small share of investment profits. Vice President Principal.- Position usually reached after two to three years in the private equity fund.- They are expected to be able to lead the execution of transactions, source their own investments, and create ideas within their area of expertise.- They also spend a lot of time managing the portfolio companies.- They get promoted to partner if they demonstrate a good ability to generate money for the firm.- A share of profits of the investments is an increasingly large portion of the compensation Managing Director Partner.- In charge of leading the firm s investment focus and strategy, as well as managing relationships with investors and raising new funds.- Participate in investment decisions, sit in the investment committee, and sit on the portfolio companies board.- Compensation is largely driven by profits of the firms Partners are also expected to invest a significant proportion of their personal wealth in the fund. Must-Reads for Private Equity. Private Equity as an Asset Class. An introduction to private equity in five sections 1 Definition and structure of the industry 2 Buyout funds 3 Venture funds 4 Development Growth funds 5 Due Diligence and other topics The good point about this book is that it doesn t get overly technical from the start, but takes some time explaining the business model of private equity firms in general Nevertheless, bear in mind that this book is written from an investor perspective the people investing in the fund as opposed to the private equity fund manager s perspective. The Predator s Ball The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders. This book is largely about the emergence of junk bonds, which are the type of debt used to finance Leveraged Buyouts LBOs , without which the private equity market would not really exist The books focuses on the rise and fall of legendary investment bank Drexel Burnham Lambert, the bank that ruled the junk-bond world in the 80s. Barbarians at the Gates. A very long book by Bryan Burrough and John Helyar, but also a mandatory read for future leverage buyout moguls This book relates the true story of a bidding war for RJR Nabisco one of the largest consumer goods company in the U S at the time , who was ultimately acquired by KKR We recommend this book because it is well-written and relates to a true, very important event of financial history also, it will give you a good idea of the political fights that occur during large leverage buyouts You will get a good overall understanding of how private equity companies think and work. The New Financial Capitalists Kohlberg Kravis Roberts and the Creation of Corporate Value. This is a study of private equity pioneer and powerhouse KKR This is a great read for many reasons it not only gives you an unbiased story of KKR s rise to prominence, but it also details other aspects of private equity such as deal structuring, definitions of technical terms, and an interesting insight into entrepreneurship. Mr China is not only a book about doing business in China It tells the real story of a tough Wall Street banker coming to China to buy companies, eventually spending 400m buying Chinese companies in the 90s, with somewhat disastrous and sometimes hilarious results It is incredibly well-written, and provides a very good insight into doing private equity in China, and also about how difficult it is for private equity firms to manage and turn around the companies they buy. Not technical Some technical language For advanced experienced professionals. Overview of LBO Debt Financing. When a private equity firm conducts a leveraged buyout , or LBO, it uses a significant amount of debt The list below is a high-level explanation of the different types of debt instruments that are commonly used in LBO transactions When purchasing a company, the private equity fund will usually provide anything between 30 to 50 of the purchase price in equity i e the fund s own money , and borrow the rest The 30 to 50 range varies depending on market conditions and the type of company that is bought, but most LBOs usually fall in that range The type of debt used, in order of risk from the lending bank s perspective , includes. Senior Debt. This debt ranks above all other debt and equity capital in the business, meaning it needs to be repaid before other lenders can receive any cash The debt has very strict requirements i e must comply with specific financial ratios , and is usually secured against specific assets of the company This means that the lender can automatically acquire these assets if the company breaches its obligations Therefore, it has the lowest interest rate of all these types of debt and, from the lender s perspective, this is the most secure form of financing Debt repayments can be spread over a four to nine-year period or be paid in one final payment in the last year. Subordinated Debt. This debt ranks behind senior debt in order of priority on any liquidation Repayment is usually required in one payment at the end of the term as opposed to spreading the repayments over a number of years , and the maturity can range between seven to ten years The requirements of the subordinated debt are usually less stringent than senior debt, but since subordinated debt gives the lender less security than senior debt, lending costs are typically higher. Mezzanine Debt. This is usually high-risk subordinated debt, and ranks behind senior debt and unsecured debt In terest on mezzanine debt is much higher, but while part of the interest needs to be paid in cash, another part called a PIK, or paid in kind is rolled up into the principal For example, if you borrow 100 shares of mezzanine at 10 , with 5 cash and 5 PIK, you will have to pay 5 in cash in interest in the first year, and the remaining 5 will accrue to the principal Therefore, the following year, you will need to pay 10 on the new principal of 100 5 accrued in previous year which equals 105 , and this continues until maturity when the full principal needs to be repaid usually within 10 years Sometimes the mezzanine debt will also include warrants or options so that the lender can participate in equity returns. What do Private Equity professionals do. Private Equity is essentially about buying and selling companies But what do private equity professionals really do on a day-to-day basis The time of private equity professionals is divided between four main categories. This task is mostly perfo rmed by the senior partners in a private equity fund, but sometimes a dedicated fundraising team will work within some of the larger funds Essentially, every four to five years or so, the senior management will go knock at the door of international investors such as pension funds, banks, insurance companies and high net worth individuals to raise money for their next fund This goes in cycle when the current fund is close to being fully spent i e.70-80 of the money has been invested in companies , the senior management will go on the road and ask for fresh money Fundraising involves presenting the past performance of the fund, its strategy, and the individuals working in the firm who will be in charge of making investments All of this is needed to convince those institutions to invest money with the firm. Sourcing and making investments. The sourcing i e finding investments part is largely done by mid-to senior management, and involves looking for potential targets and reaching out to the management of those companies, either directly or via a middleman such as an investment bank Many private equity funds will specialise in sectors and or regions their dedicated teams will have very strong knowledge of all the attractive companies in a specific sector and will also know potential targets management teams well The making part, which represents the process of acquiring a company, is the responsibility of the junior team, under the seniors supervision This involves drilling into the financial performance of the company, analysing the trends in the industry, negotiating with the target, and coordinating the work of advisors investment banks, accountants, strategy consultants, lawyers, technical experts, etc Once they have analysed sufficient information, the team will present an investment paper to the senior partners to propose the investment The senior partners will then vote to accept or reject the investment. Once a company has been acquired, it needs to be managed for a couple of years until it is sold off While private equity professionals are not involved in the day-to-day running of the companies they buy, they will monitor performance and be involved in important strategic decisions While some firms have specialist teams that manage investments operations teams , most of the time the team that worked on the transaction will be in charge of monitoring the company. Selling off companies. Returns are only really generated when companies are sold at a profit Investments are typically kept for three to five years, and will be sold after that time period This process is also usually managed by the more junior team under senior management supervision Companies can be sold though a sale to another company, a sale to another private equity firm, or via an IPO on the stock market. What Is So Good About Private Equity. If you work in investment banking long enough, you ll often hear about private equity and meet bankers wanting to move to private equity But wh y do people want to get into this field and why is it so competitive A few answers below. The job is considered more intellectually challenging than investment banking. In investment banking, you are merely advising companies on what to acquire and divest, or on ways to optimize their finances, while private equity professionals take the risks by directly investing money in companies A private equity job not only involves crunching numbers and pitching ideas, it also requires finding attractive potential targets, understanding key dynamics in various industries, understanding how companies are run, and actually helping to organize the management of those companies PE professionals must have the necessary personal and communication skills to get on with the management and create a solid network, and obviously, you need to understand M A and financial modelling extremely well Overall, private equity is thought of as a much more well - rounded job. The lifestyle is better than investment bank ing. Private equity firms do not have clients, and in general don t have to prepare presentations at the last minute, so all-nighters are highly unlikely They also outsource many of the more labour - intensive tasks banks help them find targets while managing acquisition and sale processes, consulting firms help them with due diligence, and accountants help them with the financial side This is not to say that private equity professionals do not work hard when they are on deals, and there will definitely be quite a lot of late nights during due diligence process, but on average the hours are significantly better On the flip side though, while the pressure is not as constant as in investment banking, PE firms give a lot of responsibility to their juniors, so pressure to perform is actually much greater you won t have an associate or VP to double-check your work before it goes to the partner, so you re on your own Also, private equity is often considered to be a solitary job compared to inv estment banking you don t have as many colleagues and the camaraderie is just not the same in private equity firms, compared with investment banks. The long-term pay is better. If you work in private equity, one part of your long-term compensation will come in the form of carry , which is essentially a percentage share of the gain that the fund makes when selling investments This can be a substantial amount and equal to several millions over a few years if the fund is successful, hence the attractiveness of the private equity business model. The prestige factor is greater. Private equity investors are on top of the financial food chain They buy and sell large companies across sectors and countries, sit on management boards, coach and advise CEOs, and have top investment banks and consulting firms working for them For example, firms such as the Carlyle Group manage over 000 billion and, through their investments, employ over 400,000 people globally Current and former employees include Georg e Bush Sr, George W Bush, John Major former British PM , two former prime ministers of Thailand, the former President of the Philippines and the brother of French President Sarkozy In addition, private equity jobs are highly competitive because those firms employ very few people, and those people tend to stay for many years or decades with the same firm Therefore, they are able to be extremely picky about who they employ, and the lucky few to make it in the industry can pride themselves as being among the cream of the crop. What Can You Do After Private Equity. Private Equity is often viewed as the holy grail for many professionals working in finance, especially for those from investment banking and strategy consulting However, those who manage to make the switch to Private Equity usually do so at a very young age, either in their mid-twenties or early thirties So, do they keep working in private equity for the next 30 years Can they change jobs Below is an overview of the potential care er exits open to private equity professionals.1 Moving to a hedge fund. Many private equity professionals get frustrated by the slow pace and tedious administrative tasks of deal-making, and by the long time it takes to make large profits If you work in private equity, you will not be able to become millionaire overnight - it will take at least five to ten years Therefore, a lot of PE professionals decide to move to hedge funds, where returns can be made quickly and money can be earned but also lost more rapidly There are some similarities between hedge funds and private equity both are about investing money wisely, so junior private equity professionals can easily make the switch.2 Becoming a venture capitalist. Some private equity professionals may also find that doing large deals is not as exciting as investing in startups, and may switch to VC funds This is more common for people that have a sector focus such as Media, Technology or Healthcare, given that those sectors are favoured b y Venture Capitalists.3 Launching your own fund. This is not really a career change per se, but many private equity professionals dream about launching their own funds This happens more frequently for senior professionals who have a track record and large networks.4 Joining a Corporate Portfolio Company. One of the most interesting aspects of working in private equity is helping the portfolio companies to grow Private Equity professionals quite commonly decide to go to work for one of their portfolio companies in a senior position i e CFO, CEO, Head of Business Development This can become quite lucrative, as you would usually be granted stock in the company and make a substantial profit if the exit is successful It doesn t even have to be one of the portfolio companies - the private equity skillset if very well suited to roles in corporate strategy and finance.5 Moving back to advisory roles i e investment banking, private equity strategy consulting. This is not the most common move, but some private equity professionals can decide to move back to investment banking or other advisory roles for a variety of reasons, including redundancy, failed fundraising, poor economic environment, or if they just find it to be more lucrative.6 Secondary funds, Fund of Funds. Some PE professionals leave to join secondary funds or fund of funds companies Secondary funds are funds that purchase portfolio companies from private equity funds directly it can be one or many , usually at a steep discount The private equity funds often need some liquidity for a variety of reasons, i e they want to exit from a specific sector or close down the fund rapidly Funds of funds are funds that invest in private equity companies as opposed to investing in companies. Most private equity professionals are highly entrepreneurial and always have some great business idea at one point or another, especially at the junior level Private equity is also very helpful if you want to become an entrepreneur, because t he opportunities to learn and network are fantastic. Private Equity Compensation Structure. The whole private equity business model is based on profit sharing i e sharing the profits made from the investments Therefore, compensation is quite different from what you would encounter in a typical corporate environment, or within investment banking. How do Private Equity firms get paid. Private equity firms get paid in two main ways management fees and carried interest.- Management fees are paid regularly by the Limited Partners i e the people who gave the money to the firm to invest to the fund This is calculated as a of the assets under management For example, if the Limited Partners invested 1 billion with a private equity fund, they will pay something around 2 of that amount 1bn x 2 20 million per year to the fund as a management fee Why do they have to pay this given that they already gave the fund money to invest This is because the private equity funds have a lot of ongoing expenses tha t they need to cover salaries, deal fees that they pay to investment banks, consultants , travel, etc.- Carried interest this is a percentage of the profits that the fund gains on the investments For example, if a company is bought for 100 million and sold for 300 million, the profit is 200 million The private equity firm usually takes about 20 of that amount 40 million , and the rest goes to the investors However, it is not that straightforward in reality - there is often a hurdle rate of return that the fund has to make before they get paid anything For example, the Limited Partners may ask that the fund only gets paid if the return is over 8 per annum In addition, the profit is calculated for the performance as a whole for the whole amount invested that may be 10 to 15 deals , not on a deal-by-deal basis.- Others some private equity firms charge deal fees That means that each time they buy a company, they may charge some extra money to the investors This is in theory to cover the ex tra expenses incurred during a deal How do Private Equity professionals get paid Private equity professionals compensation reflects the way the overall firm gets paid.- Base salaries usually on par with investment banking or consulting sometimes slightly lower.- Year-end bonuses usually lower than what you would get in investment banking.- A carry component represents the individual s share of profits The more senior your level in the fund, the larger percentage you will receive of the overall carried interest This profit share is always paid when all the profits in the fund have been realised which can take five to seven years , and this can be very substantial because private equity funds are small, but they can manage very large amounts of money.- Coinvestments some private equity firms allow employees to invest their own money in some deals, and if the deal is successful, you could realise a significant profit as well. What makes a good private equity investment. This is a very commo n Private Equity interview question, and you might also encounter that type of question in interviews for investment banking, equity research or even capital markets roles Not all companies are suitable targets for LBOs, and private equity firms will only invest in companies exhibiting the following characteristics. Strong and stable cash flows. Private equity deals get enhanced returns because they use a significant portion of debt to finance their investments For example, if the company costs 100, they can typically use 50 of their own cash to pay for it, and 50 of debt The process of using debt is called leveraging or gearing a company This means that the company will have to make substantial monthly or quarterly interest and principal repayments on the debt, and it cannot afford to miss any of those payments For this reason, the bankers will only be happy to lend significant amounts of money to companies that have strong, stable, and predictable cash flow. Low capital expenditure requ irements. Private equity tends to stay away from companies that require heavy investments in plants, machinery, or equipment as these are a drain on cash Examples of capital expenditure intensive industries are energy, utilities, manufacturing, construction, and transportation Industries that require less capital expenditure are software companies, online businesses, and publishing ventures. Leading market positions. Attractive companies have proven products and good management, which usually translates into a top three positioning Strong positioning is also typically synonymous with strong and more stable cash flow. High barriers to entry, niche markets. High barriers to entry and niche positioning will protect the company from competition, which could hurt cash flow and the company s ability to repay debt. Potential for margin improvement or cost reduction. This can be observed by comparing the company cost structure to its competitors and will be a source of value creation for private equi ty, which will restructure the business to some degree Private equity firms often hire consultants that identify those strategic and cost improvements. Strong existing management team or availability of new management team. Strong management is always a positive, even though new management is often brought in during a LBO. Acquisition opportunities. Acquisitions are a good way to grow companies quickly Therefore, private equity firms will analyse the industry to identify potential targets An industry with many players is called fragmented. Good exit potential. A private equity firm will need to be convinced that a suitable exit can be found This will normally occur by way of trade sale selling to another company , secondary sale selling to another private equity firm or IPO A buyer will typically have a time horizon of between three and five years, although a number of financial buyers target longer or shorter periods. What is Private Equity. Private equity funds are private pools of money man aged by general partners who aim to generate a return to the investors limited partners who are investing their money in the fund Private equity funds can manage anything from 50 to 100 million to several billions. The general partners will charge a percentage fee of the total amount that they manage typically 1 5 to 2 per year and they will also keep a share of the profits they generate usually 20 Private Equity is called private because it is a source of funds that do not originate from public sources such as bonds or listed equity The funds are used to invest in companies, usually acquiring a significant stake to gain control over the firm s management When a private equity firm makes an acquisition, they use significant amounts of debt, and therefore such acquisitions are called Leveraged Buy Outs or LBOs The practice of LBOs was pioneered by firms such as Kohlberg, Kravis Roberts KKR in the 1970s and over the last three decades, LBOs have assumed roles of ever-greater importance in the financial world. How does an LBO work How do they make money. Private Equity funds buy companies using significant amounts of debt instead of their own money, which holds a number of advantages.1 Interest on debt is tax-deductible.2 If the company has a lot of debt, a small change in its overall value will have a strong impact on the equity value i e the money invested by the fund This effect is called gearing A simple example imagine you buy something for 10 by borrowing 9 and using 1 of your own money Three years later, it is worth 12 20 increase You pay back the 9 of debt and you keep the 3 extra, so you made 300 In real life, the process is complicated by taxes, interest, and debt repayments but the theory is the same Bear in mind that the interest you pay on the debt is fixed, so the private equity firm can pocket all the extra return.3 Because cash flow is tight due to debt repayment, debt keeps management disciplined.4 Most LBOs are structured so that management is also given a substantial incentive to perform in the form of equity.5 Private Equity funds will then help the company to achieve an optimal strategy i e revenue growth, cost-cutting with the aim to exit and sell the company within four to five years after some of the debt has been repaid , either to another company, another private equity fund, or through an IPO. How are they different from venture capital or hedge funds. Venture Capital firms invest in early-stage companies or start-ups , and make smaller investments a few millions at maximum Venture Capital firms also target very high-growth companies with huge potential, i e Internet companies such as Facebook, Google, and other innovative technology firms in healthcare, renewable energy, biotech, etc but that also have more potential to go bust Hedge Funds invest in publicly listed securities and usually do not seek to gain control of companies they invest in Also, hedge funds tend to appeal to very short-term investors from days to less than one month. Where does the money come from. Wealthy individuals, pension funds, and mutual funds are the typical investors in private equity funds. What kind of companies do Private Equity funds buy. Because LBO returns on average 20-30 over four to five years can only be achieved with a lot of debt and good growth potential, the target companies have to be quite stable So strong, niche, market-leading companies with cost-cutting and expansion potential in non-cyclical industries are favoured targets. What kind of people work for private equity. In the UK, there are four kinds of backgrounds. Ex-investment bankers. Ex-strategy consultants. Ex-Big 4 accountants. Industry experts such as ex-CEOs or senior managers of corporations. Many of these people come from Oxbridge Ivy League universities, often with top MBAs. What about job prospects and salaries. Because firms are very small 10 to 20 people on average , there are very few jobs available Also, requirements are very high due to the high level of responsibility This makes the industry extremely competitive, even much more than investment banking Salaries are on par with investment banking, bonuses are usually lower, but you will get the opportunity to share in the profits generated by the fund, which can be substantial. Paper LBO model example. This type of paper LBO test is an interview exercise you will be facing, often multiple times, in the course of a Private Equity recruitment process Make sure you are able to go through this exercise reasonably quickly and without the help of Excel or a calculator Clearly state the simplifying assumptions you are making and their implications. The team is considering the purchase of a company on the 31st of December of Year 0. Entry multiple 6 0x LTM EBITDA. Entry Debt quantum 3 0x LTM EBITDA. Assuming no financing and transaction fees. Interest rate for the debt negotiated at 5. Debt repaid as a bullet at the end of the investment period. Sales 100m in Y0, growing at 10 year-over-year y-o-y for the next 5 years. EBITDA historical margin at 40 of Sales. Depreciation Amortization 30 million per year, steady. Capital Expenditure 15 of Sales. Net Working Capital NWC requirements expected to increase by 2 million each year. Marginal tax rate of 25. Exit at the same entry EBITDA multiple, after 5 years. NB On most occurrences, you will not be given such a data set and will therefore be expected to either ask for some more information or come up with your own assumptions.1 Transaction metrics. Start by calculating the firm value at entry, the debt quantum, and deduce the equity acquisition price Sales for Year 0 were 100m with an EBITDA margin of 40 , which gives an LTM EBITDA of 40m and therefore an entry Firm Value of 240m The quantum of debt is determined in a similar way, giving 120m The equity cheque is therefore 120m. Other interviewers will give a leverage ratio instead of a debt multiple the debt is then computed directly from the Firm Value.2 Sales and EBITDA. Use growth and margin assumptions to calculate the Sales, then EBITDA, for every year Do not hesitate to ask your interviewer if rounding is acceptable it will save you a lot of time, show that you are fully aware of the approximation you are mak ing, and gives excellent results.3 Interests taxes. Apply the interest rate provided to the Debt nominal amount to calculate the yearly interest expense Taking out the interest expense from the EBITDA leads to the EBT, from which taxes are calculated This then leaves us with the Net Income. The goal here is to come up with the cash flows available for debt repayment for every year From the Net Income, all the cash expenses here Capex and increase in NWC should be taken out Since D A is a non-cash expense, it should be added back in.5 Firm Value at exit. Applying the exit multiple to the year 5 EBITDA, we come up with the exit Firm Value The debt at exit is the debt at entry, minus the cumulative cash flow available for debt repayment Subtracting this new debt number from the firm value gives the exit Equity amount.6 Cash multiple and IRR. The cash multiple also called money multiple is defined as the ratio of exit to entry equity. The IRR is the yearly return of the investment This often re quires a calculator, nevertheless, a few approximated figures are worth remembering, e g a cash multiple of 3x over 5 years is equivalent to a 25 IRR For more accurate figures, have a look at the conversion table below. All done, congratulations. Now, repeat this exercise with only a pen and paper and come up with new sets of assumptions Train and train again until you are able to do all this by heart and fairly quickly. For mode practice, check out our private equity case studies and modelling tests here. Now, repeat this exercise with only a pen and paper and come up with new sets of assumptions Train and train again until you are able to do all this by heart and fairly quickly. For mode practice, check out our private equity case studies and modelling tests here. Key mistakes in Private Equity interviews. Private equity interviews are notoriously difficult and compeitive, with 1000s of CVs and often 100s of candidates being interviewed for a single position Therefore, private equity firms can afford to be very demanding and small mistakes can prove to be fatal in private equity interviews.1 You didn t research the private equity fund deals. Altough this may sound basic, a very common mistake of private equity interview candidates is to forget to do proper research on the fund they are interviewing with At minimum, one should have read the website, read the recent news, and memorised 2 or 3 investments that the fund has made Fair questions may include which deal do you like most and why , which deal do you like the least , why do you think we invested in XXX , and have you read about our latest deals Make sure you understand the investment thesis for at least 3 of them, read press articles and any other source of information you can find Even better, if you get the chance to have informal conversations with other members of the team, do ask them about their deals Similarly, if you know a banker or consultant that worked on the deal, try to gather some information Well inf ormed and prepared candidate always impress, and unprepared candidates will seem not motivated.2 You didn t prepare investment ideas. Another fair question in private equity interviews is do you have any investment ideas for us This is a very standard questions and I would recommend to prepare at least 2 ideas ideally 3 that are well developed and thought out Those should be real companies and investment opportunities You will not be expected to know all the details, however you will be expected to know the investment rationale, some key financials, some industry trends and why you think it would be a good fit for the fund Typical mistake include having too broad ideas i e I think a bank would be a good investment , or something innapropriate for the fund because of size, geography or sector, for example.3 You don t know your deals. Anything on your CV is fair you are a banker or consultant, you will be expected to know about any transaction you worked on in great detail especially for t he recent ones Rationale, financials, deal specifics, strucuture, process, pricing of debt intruments, your exact role in the deal, etc Anything that is not confidential could potentiall be asked Typical mistakes and red flags are vague answers or lack of understanding of the deals you worked on After all, as an investor, you should demonstrate great attention to detail and curiosity, as well as an ability to think like an investor.4 Not getting the culture fit. Culture fit is always a tough one However, reading up on firms history, the team member profiles, a bit of social networking stalking i e linkedin combined with help from the headhunter if you are using one, should help you understand the cutlure fit To illustrate, a fund may be looking for highly technical, hard driving people This may be obvious from the team members backgrounds i e bulge brackets, technical degrees, etc In this case you should emphasise this skillset Some other funds may look for more humble attitudes especia lly as you decrease in investment size, and again this may be evidenced by the dress code, more diverse backgrounds i e accountants vs bankers, less elitist schools, etc and you should therefore adjust your interview style accordingly.5 Not being prepared for the obvious interview questions. The reality is that you are able to predict with a great degree of certainty at least 80 of the interview questions Therefore, failing to give a clear and straight answer to questions about your deals, your CV, why private equity, why this particular fund, etc is usually not well received Most of the unknows are around the case studies, modelling tests and some fit questions - the rest is fairly standard.6 Lacking number skills. Many funds like to put candidates under pressure, and testing numerical skills are a good way to do this Arithmetic questions, brainteasers, doing simple LBO modelling in your head and converting Cash on Cash returns toIRRs should be something you are very comfortable with If not - do practice Also, when asked technical questions or numerical questions, it is absolutely fine to take a bit of time to answer The key here is the control your stress and getting it right.7 Being overly confident. While all of the above mistakes involve some lack of preparation, another red flag in private equity interviews is overconfidence and arrogance, which can actually be fairly common in interviews Make sure that you are not leaning back on your chair, o not be overfriendly with the senior members of the team, and, at all times, make sure that you demonstrate that you are very keen to get the job. Differences between Investment Banking and Private Equity culture. A large majority of private equity professionals have an investment banking background, and many investment bankers are thinking of making a switch to private equity one day However, there are some major differences in skillset and culture between those two professions Often, private equity firms would like to hire bankers early, i e after one or two years experience at an investment banks The reason is that those firms are sometimes afraid that a potential recruit who has spent too much time in investment banking will acquire a banker mindset Below are some of the key differences between those two jobs. Private equity involves using your brain a lot more. A lot of investment bankers tend to be deal-driven The hunger to close many large deals is actually a weakness in private equity because it s not about generating fees anymore Private equity professionals need to do good deals and be ready to step back even after months of hard work if the deal will not generate sufficient returns What does this mean in practice This means that you will spend a lot of time analysing the industry in much greater detail compared to banking, assessing management team s ability to meet the targets, think about exit strategy, incentives, deal structure, all possible or potential downside risks, and countless other iss ues that could make the deal good or bad Private equity is not gambling or even venture capital investing in which you would typically expect a few losses Private equity is about generating consistent high returns with minimum risk. Private equity is a long-term game 5 years. While the pay might be a little bit higher or lower in PE depending on the fund size , the money is made from the carry , i e the share of the profits when companies are sold This carry is earned over time, so it doesn t make sense to jump from one place to another anymore A bad year in banking might prompt you to change your employer, but a bad year in private equity will just be a fact of life and you need to take a more long-term view In addition, the few partners who run the firm will make the decisions about carry allocation, so building long-term relationships with them will be very important to your financial success. You think you are good at modelling Think again. While many bankers are very good at modelling , private equity modelling tends to be much more detailed and focus on completely different issues Modelling in private equity often depends on designing the optimal capital structures debt equity and also the incentive structures preference shares, bonuses, management equity, etc The modeling tends to be much more complex and detailed, so assumptions in your operating model will be challenged by the team and due diligence advisors In addition, the pressure is much more intense because the deal team will rely on your model to make investment decisions, so millions will be at stake. Showing an entrepreneurial mindset is key. Being creative and entrepreneurial are very desirable characteristics for most PE funds Finding deals, networking, formulating new ideas, and considering all kinds of risks and opportunities around deals and companies can make a substantial difference to the profitability of the firm Also, private equity professionals need to understand the in-depth aspects of oversee ing companies therefore professionals with some start-up or entrepreneurial experience are valued because they understand all of those important details. Working hours may not be shorter. If you work for a very large firm - hours will be banking hours Even if you go to a smaller firm, you will still work a good 60 hours per week and your schedule will remain somewhat unpredictable due to due diligence meetings, management meetings, and other deal-related, last-minute requests While the lifestyle is better, you re still working in a deal-driven environment. The base salary and bonus structure might not differ that much from that in banking, but the money in private equity is made when a fund closes and when exits are made Don t be expecting a steady bonus and promotions every few years What matters most now is the fund performance, not your own individual achievement You may have built the best models and worked on the biggest deals, but if the returns are not there, you won t get paid. The amount of grunt work definitely decreases in private equity There are fewer administrative tasks, printing of books, and many people-intensive tasks can be outsourced to banks and advisors But essentially, what you do is the same as in banking analysing companies, building operating and LBO models, dealing with all the legal documentations i e reviewing NDAs, term sheets and making presentations to the investment committee. Finding deals is something completely new for investment bankers While you will not be expected to bring deals immediately, eventually the team members will expect you to be able to build relationships with bankers and screen through the deals to find some that are appealing, and also to cold call or approach companies directly This is a key aspect of becoming a private equity professional many junior bankers find the transition difficult as they have been handed out deals to work on in their banking days. Social life in investment banking can actually be quite excit ing You re working in firms with thousands of employees there are many peers to discuss and to share your war stories with, junior bankers are usually all below 30 and there is a work hard play hard mentality Also, the turnover is quite high in banks new analyst and associate classes arrive every year, so it can be a very stimulating environment Private equity is completely different Teams are small maybe 10 to 30 people , many of the partners and senior investors are much older, and people don t really move upward or downward Considering that the typical profiles of private equity professionals tend to be quite standard i e top school, investment banking strategy consulting background, etc , therefore social life tends to be less fun Choosing the right firm with the right culture fit is very important and you need to make sure that you will get along with your interviewersmunication skills are extremely importantmunication skills and personal skills are extremely important in private equity You can be a top modeller and be extremely hardworking However, to convince the investment committee, get people in the firm to support you, get the management team to work with you, and find out the best deals from the intermediaries, you will need for people to like you Most of the senior private equity professionals are charismatic individuals at least when they need to be , and there is little space for professionals who are either too shy or arrogant.