Monthly Archives: February 2022

Home 2022 February

How do rising interest rates affect the PE landscape, and how would you adjust your financial models and investment strategy in light of rising rates? (1 min)

As of 2022, the Federal Reserve has committed to raising interest rates to combat 7% inflation in the US, possibly by as much as 50 basis points which would drive up borrowing costs materially. This means that interest payments on existing senior debt will rise since they are typically floating rate...
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What are the advantages and disadvantages of sourcing a deal through proprietary means vs. participating in a competitive auction? (1 min)

Sourcing a deal through proprietary means can potentially give you a competitive advantage, especially if other private equity firms have not discovered or participated in this niche / sector. For example, a private equity firm could identify a subsector of an industry that is attractive, which has ...
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Why not private equity?

Although some candidates may be interested in private equity, it’s important to speak to your interest in investment banking. The focus should be talking about all the advantages of investment banking, rather than talking about the disadvantages of private equity. For example, maybe you enjoy the ...
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