Understand it. Then drill it.
Every lesson covers one interview topic, question type by question type: the intuition, why it works, a worked example with live numbers, diagrams you can move, the same idea run backwards, and a check marked exactly like practice.
Private Equity topic lessons
5 of 5 topics readyLBO Returns
How a sponsor measures, explains and improves a buyout return: IRR and MOIC, the value bridge, the entry price, bolt-ons, dividend recaps and management's share.
- 1IRR versus MOIC
- 2The value creation bridge
- 3The entry price
- 4Bolt-ons and multiple arbitrage
- 5The dividend recap
- 6Management rollover and the incentive pool
Debt & Leverage
How much a buyout can borrow, in what form, and how the sponsor lives with it: debt capacity, unitranche versus mezzanine, PIK, covenants and refinancing.
- 1Debt capacity: three tests, one answer
- 2Unitranche versus senior plus mezzanine
- 3PIK interest and accreting balances
- 4Covenant headroom
- 5Refinancing breakeven
Fund Economics
How a private equity fund makes money for its investors and its managers: fees, the J-curve, DPI and TVPI, the carry waterfall and the GP commitment.
- 1Management fees and fee drag
- 2The J-curve
- 3DPI, RVPI and TVPI
- 4The carried interest waterfall
- 5The GP commitment
Deal Structuring
How the terms of a deal change who gets what: earnouts that bridge a valuation gap, rolling equity instead of taking cash, and preferred equity that protects a minority investor.
- 1Earnouts: paying for a forecast
- 2Rollover versus cash at close
- 3Preferred equity: preference and participation
Operating Model
How a sponsor grows EBITDA and cash after buying a company: price, volume and mix, operating leverage, cost-out programs, working capital and capex.
- 1Revenue build: price, volume and mix
- 2Operating leverage and the margin bridge
- 3Cost-out programs
- 4Working capital as a cash lever
- 5Maintenance versus growth capex