FAQ

What if I make a math error in the paper LBO test?

You will. Everyone does. The question is whether your error is isolated or cascading, and whether you catch it. In a 2023 KKR test, a candidate transposed two digits in the senior debt principal, producing a $12M error. Because her structure was transparent and she flagged the inconsistency in the equity check, she identified and corrected it during review. She received the offer. The candidate with perfect arithmetic but opaque structure—no one could verify where his numbers came from—did not. Document your work so thoroughly that an error is findable.

Should I ask clarifying questions during the paper test?

Selectively. The specific moments to ask: when the case contains a genuine ambiguity that affects structure (cash-free debt-free, fee treatment), not when it merely requires an assumption. In a 2022 Blackstone interview, a candidate asked four questions in the first 10 minutes. The interviewer later noted: “Seemed uncertain rather than precise.” Another candidate asked one question: “Is the target’s $45M cash included in the transaction, or is this cash-free?” That was it. “Strong Hire.” The difference: his question changed the model structure. Hers clarified nothing material.

How important is the qualitative follow-up question at the end?

At six of eight firms where I have reviewed rubrics, the qualitative question functions as a tiebreaker between technically equivalent candidates. It is never truly qualitative. It tests whether you can connect your model to investment risk. The specific format that succeeds: “My model assumes X.

If X fails, the downside is Y, which would reduce returns to Z. The mitigant would be A.” In a 2024 growth equity loop, a candidate answered the qualitative question by referencing a specific portfolio company’s failed expansion—public information from the firm’s website. The interviewer, who had worked on that deal, wrote: “Prepared. Hired.”

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