PE Interview Prep 2026
Practice the technical questions, behavioral frameworks, and deal discussions that determine who gets offers at KKR, Blackstone, Apollo, and every top PE fund in 2026.
10 min
Paper LBO target
60 sec
Deal walkthrough
72 hrs
On-cycle timeline
Technical Questions for 2026
These are the core technical areas tested in PE interviews. You need to answer confidently and quickly.
LBO Mechanics
- Walk me through an LBO
- What are sources and uses of funds?
- How do you calculate IRR and MOIC?
- What makes a good LBO candidate?
- How does leverage impact returns?
- Walk me through debt schedules
Paper LBO
- Solve this LBO in 10 minutes (pen & paper)
- What's the Rule of 72/114/144?
- How do you approximate IRR quickly?
- What drives returns in this scenario?
- How would returns change if we paid down more debt?
- What exit multiple do we need for 20% IRR?
Accounting & Valuation
- Walk me through purchase accounting
- How does goodwill get created in an LBO?
- What happens to deferred revenue in an acquisition?
- How do NOLs work in an LBO?
- Enterprise value vs. equity value bridge
- How do convertibles affect the EV bridge?
Credit Concepts
- Maintenance vs. incurrence covenants
- What's PIK interest?
- How does a revolver work in an LBO?
- What's the typical leverage for an LBO?
- How do you size debt capacity?
- Senior vs. subordinated debt
Get Full Technical Prep
The 2026 PE Playbook includes detailed answers to every technical question with worked examples.
Get the 2026 PE Playbook, $49Paper LBO: The 10-Minute Framework
Every PE interview includes a paper LBO. Memorize these rules to calculate IRR without Excel.
Rule of 72
Years to 2x = 72 ÷ IRR
Rule of 114
Years to 3x = 114 ÷ IRR
Rule of 144
Years to 4x = 144 ÷ IRR
Want the full timed paper LBO system?
Get the Paper LBO Playbook, $49Quick Reference: 5-Year Hold IRR
2.0x
~15% IRR
2.5x
~20% IRR
3.0x
~25% IRR
3.5x
~28% IRR
Behavioral Questions That Matter
Technical skills are table stakes. These behavioral questions determine if you get the offer.
"Why PE?"
Framework
Transition from advisor to investor, long-term value creation, ownership of decisions
Common Mistake
Mentioning work-life balance or money as primary motivators
"Why this firm?"
Framework
Reference 2-3 specific deals, investment strategy alignment, conversations with team members
Common Mistake
Generic answers like 'leading firm' or 'great culture'
"Walk me through a deal you worked on"
Framework
60-second structure: Overview → Your role → Business description → Investment thesis → Outcome
Common Mistake
Rambling past 60 seconds or not having investment thesis ready
"What multiple would you pay for this company?"
Framework
Have a view and defend it with comps, growth profile, and risk factors
Common Mistake
Saying 'it depends' without offering a specific answer
The 60-Second Deal Walkthrough
"Walk me through a deal you worked on", this is your chance to show investment judgment.
Transaction Overview
"[Bank] advised [Company] on its sale to [Buyer] for approximately [$X] billion."
Your Role
"I was the lead analyst responsible for building the merger model, coordinating diligence, and supporting management presentations."
Business Description
"[Company] is a [description] with approximately [$X] revenue and [$X] EBITDA. The business [key characteristics]."
Investment Thesis
"The buyer was attracted to [3 key investment merits]. The strategic rationale centered on [synergy thesis or growth opportunity]."
Outcome
"The deal closed in [month/year] at approximately [X.X]x EBITDA."
Related 2026 PE Resources
PE Headhunters 2026
The 7 firms that control megafund access
PE Compensation 2026
Associate to Partner salary data
PE Career Path 2026
Timeline, promotions, and exits
Non-Target to PE
Breaking in from non-traditional paths
PE On-Cycle Process
The sequence candidates need before day one
Paper LBO Playbook
Timed reps, worked examples, and mental math, $49
PE Modeling Test Guide
Speed, structure, and recommendation quality
Megafund vs Middle Market PE
Career trade-offs beyond prestige alone
Ready for 2026 PE Interviews?
The 2026 PE Playbook has everything, 42 pages of technical prep, behavioral frameworks, headhunter strategy, compensation data, and contrarian insights.