PE ppl: is it common for PE firms to give consultants full-out "here's a CIM, go do a full fledged LBO model based on the information within" interview exercises during the hiring process?

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I think the people here are leading you astray. If you are in the on-cycle recruiting pool for a deal role, you will absolutely go through the same technical / paper LBO / case study process as the people in a banking analyst program - what would be the rationale to not test you on the core duties of the role?

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I think most “consultant friendly” shops wouldn’t do full on 3 hr modeling tests, but consultant friendly shops are a fraction of the total. I’ve found paper LBOs to be much more common in my (limited) experience. There’s also probably some difference in the type of funds recruiting from BCG (umm, higher bar to pass) than non-MBB firms (mm/lmm, lower bars to pass)

If on-cycle, if it’s a fund that historically hires consultants, they most certainly will not expect you to be able to do a full-fledged LBO the same way a banker can. You will likely have to do a paper LBO and maybe a really basic one in excel, but it will not be overly complex. PE funds that hire consultants know you will be weak on “finance” when you join. They’re hiring you because you’re strong on business judgement and likely have diligence experience from your consulting firm. They know they can teach you finance (it’s really not hard to pick up) on the job.

Off-cycle, since the interviews tend to be more spread out they may give you a take home where you’ll need to build a bit more complex model. My insight is less clear here since I recruited on-cycle

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Not common for consultants. You’d be looking to get into the operations side of PE not the finance side. They’d expect a LBO modeling case if you had a banking background and we’re going to be on the team targeting companies. Consultants have no experience in that.

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Yeah I'm talking about consultants interviewing for deal team, should have clarified

Not common but definitely not unheard of. It signals that they don’t hire consultants often and expect you to come in with at least the basics of the banking toolkit

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Okay makes sense!

I got a 5 page CIM and an hour - I think this is fairly normal

Makes sense. Question was prompted by getting a "5-7 hour" take home exercise from a firm a few weeks back

Why would they test you differently for a role with the same expectations as any banker?

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