In a private equity interview, the deal discussion is where careers are made or broken. According to Kaushik Ravi, mastering this portion of the process requires more than a rehearsed story, it demands an investor’s mindset.
Kaushik encouraged candidates to treat the deal discussion like a mini-investment committee pitch. That means coming to the table with detailed knowledge, clear thinking, and an opinion. What makes this deal interesting? Where are the risks? What would you have done differently?
From Context to Capital Structure: Building the Narrative
He broke the process into several layers. First is context: understanding the company’s market position, the industry dynamics, and the growth trajectory. Candidates should be able to say, “This was a market leader in an industry growing 8–10% annually,” and explain why that matters.
Then come the numbers. What were the revenue and EBITDA figures, or what did the capital structure look like? What kind of multiple was paid? Kaushik doesn’t expect candidates to remember every decimal, but they should show command over approximate figures. Interviewers want to see that candidates weren’t just bystanders; they understood the mechanics of the deal.
He emphasized the need for fluency in deal mechanics. Candidates should be comfortable with valuation techniques and be ready to explain why they used DCF, LBO, or precedent comps. They must be able to defend how they arrived at a valuation range and what IRR was expected.
Beyond the Numbers: Strategic Thinking and Judgment
What sets strong candidates apart is their ability to think like investors. Beyond modeling, Kaushik stressed the importance of strategic levers. Why was the deal compelling? Were there cost-cutting opportunities? Geographic expansion? A cross-sell potential? Candidates should be able to speak to these dynamics with authority.
Kaushik also addressed candidates from non-traditional backgrounds like real estate or commodities. He advised them to be ready to speak about companies in core sectors like fintech or healthcare. Even if they hadn’t worked on such deals, they could pick a company, study its revenue model, and articulate what made the business interesting.
Regarding confidentiality, he reassured candidates that anonymising details was fine. The key is structured thinking, showing clarity of thought, and a compelling rationale matters more than the actual company name.
The Final Question: Would You Do the Deal?
Every deal discussion should end with a moment of judgment. Kaushik emphasized the importance of answering one simple but powerful question: “Would you do the deal?”
This question ties everything together: numbers, strategy, risk, and conviction. A candidate who says yes must explain the investment thesis and exit strategy. A candidate who says no must articulate the risks that tipped the balance.
Ultimately, Kaushik underscored that the investor mindset is not about having the “right” answer, but a well-reasoned answer. This shows maturity, critical thinking, and readiness to operate on the buy-side.
A Blueprint for Private Equity Interviews — and Beyond
Kaushik’s framework is more than just an interview prep guide, it’s a way of thinking. It rewards structured reasoning, demands clarity, and insists on ownership. For candidates aspiring to break into private equity, this isn’t just preparation, it’s practice for the real job.
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