Top 20 Private Equity Interview Questions (2025 Guide)
Master the most common PE interview questions with our comprehensive guide. Learn how to answer LBO questions, valuation problems, and commercial judgment questions with interactive practice.
Private equity interviews are notoriously challenging. They combine technical finance knowledge with commercial judgment and the ability to think on your feet. Here are the 20 questions you're most likely to face, with strategies for answering each one—plus interactive practice questions to test your understanding.
Technical Questions
Test Yourself
Interview Question
Which statement about LBO return drivers is MOST accurate?
Test Yourself
Interview Question
A company has $200M market cap, $80M debt, and $30M cash. What is its Enterprise Value?
Understanding Enterprise Value is fundamental to all LBO analysis. Master this and you're well on your way to acing PE interviews.
Commercial & Judgment Questions
LBO Technical Questions
Test Yourself
Interview Question
You buy a company for $100M with 60% debt. It appreciates to $150M, and you pay down $10M of debt. What is your equity MOIC?
Test Yourself
Interview Question
Two investments both deliver 2.5x MOIC. Investment A exits in 3 years, Investment B in 6 years. Which has the higher IRR?
Test Yourself
Interview Question
Company has $100M EBITDA. You buy at 10x ($1B EV) with 50% debt. EBITDA grows to $150M over 5 years. You exit at 10x and debt pays down to $300M. What is the MOIC?
Fit & Behavioral Questions
Advanced Questions
Key Preparation Tips
- Know your deals inside out - Be ready to discuss 2-3 deals you've worked on in extreme detail
- Master the LBO - You should be able to walk through an LBO in your sleep
- Have a point of view - PE firms want investors, not analysts
- Practice out loud - Interview answers sound different spoken vs. written
- Research the firm - Know their portfolio, recent deals, and strategy
Deep Dive Resources
Ready to go deeper on specific topics? These guides cover the most important areas in detail:
- LBO Explained Simply — Complete walkthrough of LBO mechanics and structure
- LBO Interview Questions: Ultimate Guide — 50+ LBO questions with model answers
- 3 Drivers of LBO Returns — EBITDA growth, deleveraging, and multiple expansion
- PE Deal Process & Due Diligence — From IOI to Investment Committee
- Complete Finance Interview Guide — Comprehensive guide covering PE, IB, VC, and more