Private Equity Associate Interview Questions and Answers

Private equity is an alternative investment class where investors pool capital to invest in private companies.

• Limited partners are investors who provide capital to a private equity fund but have limited liability.

• NAV (Net Asset Value) is the value of a fund's assets minus its liabilities.

• IRR (Internal Rate of Return) is a metric used to measure the profitability of an investment over time.

• Private equity firms typically acquire companies, improve their operations, and sell the...read more

Approximately 1.5 million passengers travel through the Yellow Line Delhi Metro daily.

• The Yellow Line of the Delhi Metro is one of the busiest lines in the network.

• It connects Samaypur Badli in Delhi to HUDA City Centre in Gurugram.

• The line covers a total distance of 49 kilometers and has 37 stations.

• The Yellow Line is known for its high ridership due to its connectivity to key areas like Connaught Place and Gurgaon.

Types of financial statements include income statement, balance sheet, cash flow statement, and statement of changes in equity.

• Income statement: Shows a company's revenues and expenses over a specific period of time.

• Balance sheet: Provides a snapshot of a company's financial position at a specific point in time.

• Cash flow statement: Details the cash inflows and outflows of a company during a specific period.

• Statement of changes in equity: Summarizes the changes in a company's ...read more

I actively sought feedback from my manager after a project to improve my performance.

• Requested feedback from manager after completing a project

• Implemented suggestions for improvement

• Showed initiative in seeking feedback proactively

Private equity involves investing in private companies or buying out public companies to make them private, with the goal of improving their performance and ultimately selling them for a profit.

• Private equity firms raise funds from investors to acquire ownership stakes in companies

• They actively manage the companies they invest in to increase their value

• Exit strategies include selling the company or taking it public through an IPO

• Examples of private equity firms include Blacks...read more