Private equity interviews test whether you can think in returns without a spreadsheet. Most questions reduce to four moves:
- Equity check = purchase price + fees - debt.
- Exit equity = exit EBITDA x exit multiple - net debt at exit.
- MOIC = exit equity / equity in.
- IRR from MOIC: 2x in 5 years is about 15%, 2.5x about 20%, 3x about 25%. In 3 years, 2x is about 26%.
Each question gives the facts on the sheet; type the number. IRR answers within about a point count, because interviewers want sensible rounding, not decimals.
The hard questions add one twist: a dividend partway through, or splitting the gain between growth, the multiple and paydown.