Private Equity Career: 4 Questions You Can Ask in an Interview
In an interview, it’s always good to ask questions from the interviewer. PE interviews are not an exception. In fact, if you ask questions in an interview, you can come across as smart and prepared for the role. Interviewers will immediately know that you have done your homework, which will reflect well on your part. Private equity investment professionals
The questions you ask, however, have to be smart. Not the ones related to salary, hike, and benefits. Asking such questions will make you look greedy. Instead, you can ask questions that give you more information about the firm, work culture, management, role, or anything that is conducive to your work. Here are four sample questions that you can ask.
Q1. What’s the employee turnover rate at the firm? Numbers are the forte of private equity professionals. So the interviewer wouldn’t be surprised at your question. In fact, this might put you in a good light. There’s always a demand for private equity jobs. So don’t be alarmed if the employee attrition rate is high. PE professionals with experience can move anywhere for more money. If the attrition rate is low, it means people are making enough and the work they do is fulfilling.
Q2. How does the firm deal with employee retention? This question is a euphemistic way to ask about the firm’s bonus and other benefits programs. The demand for private equity investment professionals is high. Hedge funds and traditional financial institutions are competing to get top talent. Private equity firms are up against hedge funds and other traditional Wall Street firms that are now more averse to risk. What you want to hear from the interviewer is: employee retention is a top priority for the firm. While answering the question, the interviewer will also give you a glimpse of the company culture, values, and work environment. Don’t expect any discussion around work-life balance as you hardly will have any time outside work.
Q3. Why did the firm opt for exit strategy A, instead of exit strategy B during the acquisition of X? Showing off your research about the firm always pays off. However, don’t get too enthusiastic. You have to be smart to ask such a question. For instance, you may not want to ask a question like, “Were you happy with the deal with Y?” The interviewer might just say, “Yes, sure.” Be smart in asking deal-related questions. You can ask, “The deal structure in your acquisition of A is creative. How did you guys come up with it?” This question will make you come across as someone really interested in taking the role and fulfilling it with utmost sincerity.
Q4. How does the firm plan to take advantage of the recent growth in private equity investing? All private equity firms want to grow and make more money. However, they plan to do so, makes all the difference. As a private equity investment professional planning to take a new job, you should know how the company plans to grow. The answer to this question will also give you an insight into the mindset of the investors. Knowing the state of the private equity industry and the firm’s plan for future expansion and growth will be an important deciding factor for you too. Further, you will know the strength of the firm.
Interviews for private equity jobs can be challenging. However, simply, answering interviewers’ questions doesn’t always make the cut. Asking questions will also give the interviewer an insight into your mindset and expectations from the role. This will can bolster your chances further, in case you lose a point here and here. Moreover, PE firms or any other company always appreciates research and probing. So ready yourself with some smart PE questions before you head for the interview.
