Private Equity interview preparation

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100

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83

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Updated

September 2026

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All firmsAdvent International6Apollo Global Management6Audax Group6Carlyle Group6EQT6Silver Lake6Vista Equity Partners6WPWarburg Pincus6HIH.I.G. Capital5Oaktree Capital Management5Platinum Equity5TPTPG5General Atlantic4AMAres Management3Blackstone3Clayton Dubilier and Rice3GSGuggenheim Securities3Insight Partners3Invesco3Lazard3Neuberger Berman3NUNuveen3TSTruist Securities3Bain Capital2HWHarris Williams2Kohlberg Kravis Roberts2Millennium Management2Moody's2Rothschild & Co2WBWilliam Blair2Bessemer Venture Partners1Citi1Evercore1FTFranklin Templeton1Houlihan Lokey1HPS Investment Partners1KKR1Mizuho1MSMorgan Stanley1Sycamore Partners1

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All topicsLBO mechanics7Value creation5Returns2Fund economics9Investment judgement18Valuation6Firm knowledge2Credit and financing9Operations4Due diligence8Career and fit11Sector knowledge4Accounting2Deal structuring7Industry knowledge3Brainteasers3

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1. 051How would you evaluate a real estate investment?Sector knowledgeIntermediatetechnicalApollo Global ManagementReal Estate · New York · 2026BlackstoneReal Estate · Vancouver · 2025InvescoReal Estate · New York · 2025

   Say this

   Net operating income and the cap rate set the value. Then the leases behind that NOI, the debt on the asset, and the exit assumption. The building matters less than the contracts attached to it.

   Then walk it

   1. NOI first: contracted rent, less vacancy and credit loss, less operating expenses not recovered from tenants. That is the income the asset actually produces.
   2. Value equals NOI divided by the cap rate. So the whole valuation question reduces to how durable that NOI is and what cap rate the market applies to that durability.
   3. Lease analysis: weighted average lease term, tenant credit quality, rent against market, escalation clauses, and break options. Long leases to strong covenants justify a lower cap rate.
   4. Capital: what does it cost to maintain, what is the deferred CapEx, and what leasing costs and incentives will you incur to re-let space?
   5. Financing: loan-to-value, the interest rate and whether it is fixed, the debt service coverage ratio, and whether any in-place debt is assumable. Cheap assumable debt is a real asset.
   6. Then returns: unlevered and levered IRR, equity multiple, and cash-on-cash yield. And the exit cap rate assumption, which should be at or above entry, because underwriting cap rate compression is underwriting the market rather than the asset.

   Where candidates lose it

   Underwriting exit cap rate compression. It is the real estate equivalent of assuming multiple expansion and investment committees reject it. Assume the exit cap is equal to or wider than entry and make the deal work anyway.

   Expect next

   • Walk me through getting exit value from gross potential rent using a cap rate.
   • What is the cash-on-cash return at a given LTV?
   • How does a rate move affect both NOI and the cap rate?

   Reported by candidates at Apollo Global Management (Real Estate, New York, 2026); Blackstone (Real Estate, Vancouver, 2025); Invesco (Real Estate, New York, 2025). Source: Wall Street Oasis.

Firm tags come from public, anonymous candidate reports on Wall Street Oasis: strong signal, not sworn testimony. Firms are named as the places a question was reported, not as partners of Fin Maverick. Answers are written for this page to show how to think out loud; they are not scripts to recite.