strong margins) in a capital efficient way over the long-term. The "average" amount of proceeds is $225 * 10 = $2,250, and the "average" Exit Year is Year 4 (no need to do the full math - think about the numbers - and all the Debt is gone). You should understand their investment style and what types of assets they like. Voluptatem at repellendus qui ab repudiandae illo consectetur est. The drag-along provision protects the interests of the majority shareholders (usually the early, lead investors) by enabling them to force major decisions such as exiting the investment. Private Equity Industry & Interview Guide How to Land Your Dream Job Daniel Sheyne Page 1 2014. Interested in hearing about growth equity interviews from people who have gone through the process recently (last 1-3 years). Investment bankers are the expected candidates for that role. After discussing these points, the fund analyzes whether the target firm's goals align with the expansion. Usually, growth equity firms seek to invest when the unit economics of the company have been "de-risked," and the company is looking to raise money in order to expand to new products, services, or geographies. In this way, its important that candidates show they can handle themselves well in this situation. Get instant access to video lessons taught by experienced investment bankers. The more departments the company has, the more managers it must assign. These numbers are pretty low for an internship position: typically 1, maximum of two rounds. What kinds of questions are asked? Venture Scouts: Tell me what I have wrong. In VC, recruitment is entirely unstructured and need-based (no deadlines). As mentioned before, the trust between the fund and the management team is essential to invest. Conversely, so-called negative working capital dynamics can help accelerate the growth and capital efficiency of a company. Does management have a plan for how they intend to use the proceeds from the investment? The focus on market analysis is one of the distinguishing characteristics of growth equity interviews. That's incorrect, and here are the reasons for that. Usually, it includes variable costs (e.g. Finally, no matter what approach you take with this question, Id recommend a short caveat for your interviewer along the lines of One of the reasons Im excited about this role is to develop and refine my growth investing approach, but my current framework is A little humility, especially in an interviewer, can go a long way. Acquiring, managing, and growing companies across sectors requires a micro and a macro view. The interview question categories are: Growth equity interviews tend to be heavy on assessment of fit. Which factors make the business model and customer acquisition strategy more repeatable to facilitate increased scalability and becoming profitable someday? Thus there will be a management risk. The compensation is relatively high due to the complexity of deals. //