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PSP Investments interview questions

26 questions researched across 1 PSP Investments seat in Investment Management. Below are 12 of them.

Seats we researched

  • Investment AnalystInvestment Management · graduate · 30 min

12 PSP Investments interview questions

  1. Let's start with something open-ended. How would you think about investing in a coffee shop?

  2. Tell me about a time you were wrong in public.

  3. Stay on the coffee shop. Where does its margin actually come from, and which cost line would worry you most?

  4. Here's a quick valuation case. A business does forty million of EBITDA, comparable companies trade at eight to ten times EBITDA, and it carries a hundred and twenty million of net debt. What's the range for the equity value?

  5. In that valuation, which assumption would you stress first, and how much does the answer move if you're wrong?

  6. Basic corporate finance: when would you value that business on EV to EBITDA versus a P/E multiple, and why?

  7. In an LBO, the sponsor takes leverage from three to five times EBITDA with nothing else changing. What happens to the equity IRR, and what happens to the risk?

  8. We look at co-investments alongside our fund commitments. A GP brings you a co-invest with a two-week deadline. What do you need to see before you'd recommend it?

  9. What's the difference between committing to a private equity fund and doing a direct co-investment, from the point of view of fees, control and portfolio risk?

  10. You're writing the investment recommendation memo for that deal. What goes on the first page?

  11. A portfolio company has missed its EBITDA plan two quarters running. What analysis do you run before the next portfolio report?

  12. Our head of private equity says he wants people who are opinionated. Tell me about a time you argued a view against people more senior than you.

What a strong answer does

The questions above fall into 3 kinds. What a strong answer does differs by kind, not by question.

Case7 of 12 above
Clarify the objective; build a mutually exclusive structure; prioritize the highest-value branch; analyze with evidence; synthesize a recommendation, risks, and next step.
Technical3 of 12 above
State the intuition first; walk through the mechanics; make assumptions explicit; test a risk or edge case; connect the answer to the role.
Behavioral2 of 12 above
Lead with the claim and context; isolate your personal action and decision; explain the trade-off; quantify the result; finish with what you learned and changed.

14 more PSP Investments questions

The rest of the bank — 26 in total — is asked by the interviewer during practice, so you meet them the way you would on the day rather than reading them first.

Practise PSP Investments questions

How these questions were researched

Every question carries a provenance grade. Some were reported by candidates who sat the round, some come from the firm’s own published guidance or a source that trains for it, and the rest are written to match how this firm asks. Each seat is studied on its own — the round it actually runs, the order it runs it in, and what it is listening for. A PSP Investments round is not a generic behavioural screen, and practising one as the other is how people walk in unprepared.

Falas is not affiliated with or endorsed by any employer named. Simulations are independent practice based on publicly described recruiting formats.