Buy companies, improve them, sell them for more — and own a piece of the upside.
Typical estimates
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Sign up freePrivate equity professionals raise pooled capital from investors and use it (plus borrowed debt) to buy companies outright, improve their operations and financials over a multi-year hold, then sell for a profit. Junior roles focus on sourcing deals, building LBO models, and supporting diligence on potential acquisitions.
Typical estimates of total pay.
Accounting Fundamentals
The 3 Statements
Walk me through a paper LBO using round numbers.
Estimate entry EV (EBITDA x entry multiple), split sources of funds between debt and equity, project EBITDA growth and debt paydown over the hold period, estimate exit EV (exit EBITDA x exit multiple), subtract remaining debt for exit equity value, and compute the multiple of invested capital and IRR versus your entry equity check.
Unlike MOIC, IRR accounts for what?
What makes a company an attractive LBO target?
Why private equity, and why this fund specifically?
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Learn about the CircleLBO Modeling
Walk me through how you'd diligence a potential investment.