How do I prepare for a private equity interview?

Three pillars: LBO mechanics you can run on paper, your deal experience told with judgment, and investment instinct on businesses. KomFi drills the first pillar hardest — 2,000 PE practice questions from sources & uses through returns bridges, with every calculation shown.

How do I learn LBO modeling?

Start with the paper LBO: entry price, debt/equity split, EBITDA growth, debt paydown, exit multiple, IRR. When you can do that in five minutes, full models are just bookkeeping. The bank rehearses each component until automatic.

What is a good IRR for a private equity deal?

The classic underwriting bar is roughly 20–25% gross IRR or 2.0–2.5x MOIC over a five-year hold, varying with strategy and rates. Knowing how leverage, growth, and multiple expansion each contribute is the interview-grade understanding.

Free sample questions

1. If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventually liquidates with
2. Following the investment, what is the investor's ownership percentage in the company, assuming no option pool
3. What is the Interest Coverage Ratio?
4. A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.15, what does this ge
5. A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose of this action in a l
6. What is the new effective conversion price for the growth equity investor?
7. Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on the balance sheet?
8. What is the company's Interest Coverage Ratio?
9. In a European (whole-fund) waterfall, a fund has called $100… — How much 'carried interest' does the GP receiv
10. If net debt remained constant at $200M throughout the hold, what was the primary source of the equity value in
11. If Year 1 Excess Cash Flow is $40M, how much is used to pay down the debt?
12. If the actual SOFR rate drops to 0.50%, what is the total interest rate paid by the borrower?
13. What is the maximum debt allowed if the leverage covenant is set at 5.0x Covenant EBITDA?
14. If EBITDA remains exactly the same and no debt is paid down, which lever is the sole source of the equity retu
15. If the company exits with an equity value of $600M, what is the net payout to the management pool?
16. According to the provided VC benchmarks (Median 1.3–1.8×, Top-quartile 3.0–5.0×), how is this fund performing?
17. Which option has the lower weighted average cost of debt?
18. If the cost of borrowing at the fund level is 4%, what is the net yield to the LPs (ignoring fees)?
19. A practitioner is calculating the 'Envy Ratio' in an LBO. If the management team's MoIC is 6.0× and the PE spo
20. Which is a better LBO candidate, all else being equal?
21. What is the sponsor's ownership percentage of the new company's equity?
22. What is the approximate internal rate of return (IRR)?
23. A $500M fund uses a 'Subscription Credit Line' to bridge its… — What is the most likely impact of this maneuve
24. A fund's Limited Partnership Agreement (LPA) contains a 'GP… — If this $10M completed the catch-up, what was t
25. What is the sponsor's required equity contribution?
26. If no principal is repaid, what is the outstanding principal balance at the end of the first year?
27. What is the fund's Total Value to Paid-In (TVPI) multiple?
28. If the hurdle is met, what is the maximum carry the GP can receive on Deal A at this time?
29. What is the Equity Value of the company?
30. If the LP wants a 10% 'margin of safety' discount on their own valuation, what is their offer price as a perce