This bank leans into restructuring and secondaries, so I would start with the math: enterprise value, a recovery waterfall and a discounted debt buyback. These 5 PJT Partners interview questions have worked answers. No signup.
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Three worked answers
Value the company, then the claims
The open examples cover enterprise value from multiples, a static recovery waterfall, and the three-statement effect of repurchasing debt below par.
01
First RoundPrivate Capital SolutionsEV & Equity Value
Solve EV from two multiples
$360 market cap, 10x EV/EBITDA, 4x Net Debt/EBITDA - what is EV?
Say your answer first. Then reveal the steps and check the assumptions.
Reveal the worked answer
Let EBITDA = B. EV = 10B and net debt = 4B, so equity = EV - net debt = 6B = $360. Assumes no preferred stock, noncontrolling interest or other claims beyond the stated net debt and common equity.
Equity value6B = $360EBITDA = $60
Enterprise value10 x $60EV = $600
Net debt4 x $60$240
Interview check: verify the bridge - $600 EV minus $240 net debt gets back to the $360 market cap. If a claim like preferred stock were added, it would sit in the bridge too.
Waterfall with $200mm EBITDA at 4x EV/EBITDA, $500mm 1L, $500mm 2L and $1,250mm of unsecured bonds. Would you buy the 2L at 60?
Say your answer first. Then reveal the steps and check the assumptions.
Reveal the worked answer
Assume the stated EV is distributable operating value, with no excess cash, fees, priority claims or accrued interest, and enforceable ranking. These are static recoveries, not predictions of actual trading prices.
Enterprise value200 x 4$800mm
First lien $500mmfully coveredrecovers par
Second lien $500mm800 - 500 = 300recovers 60%
Unsecured $1,250mmnothing left0, equity 0
Interview check: 60 matches the undiscounted static recovery, which is not the same as fair present value. Ask the clarifying questions: coupons and the likelihood they get paid, timing, collateral scope, the valuation range, costs or priming, and the form of any distribution.
How does buying back $500mm of debt at 60 affect the 3 statements (25% tax)?
Say your answer first. Then reveal the steps and check the assumptions.
Reveal the worked answer
Assume carrying amount equals the $500mm face value, and the company extinguishes its own debt for $300mm cash. Gain = 500 - 300 = 200.
Income statement
Pre-tax gain 200, tax expense 50, net income +150.
Cash flow statement
Subtract the noncash gain from net income: CFO -50. Financing outflow -300. Total cash -350.
Balance sheet
Cash -350, debt -500, retained earnings +150. Assets -350 = liabilities -500 + equity +150, so it balances.
Interview check: a market-price decline alone creates no such entry for ordinary amortized-cost debt; an actual qualifying extinguishment is required. Cash tax effects assume usable matching deductions as stated.
More questions
Two more prompts stay closed until you commit to an answer. Round and group labels come from the workbook source, not a fixed interview script.
First RoundRestructuringRestructuring
4. What options does a company with a liquidity and maturity problem have?
Check the worked answer
Size the cash deficit and the maturity gap separately. Hypothetically, 20 of cash against a 15 operating minimum gives only 5 of usable liquidity, while a 100 maturity in two months needs more than cost savings. Collect receivables and defer nonessential spend for the first gap; refinance, extend maturity, raise equity, sell assets or exchange debt for the second.
Verify covenants and lender willingness before counting on any option. If no deal can close before runway expires, prepare a funded Chapter 11 or a sale. And remember: more debt may fix liquidity while worsening solvency.
First RoundPrivate Capital SolutionsLBO & Private Equity
5. Would a secondaries investor pay 90% of NAV for a GP-led deal? What about 110%?
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Neither 90% nor 110% of NAV alone answers it. NAV may be stale, optimistic or conservative, so underwrite exit cash, financing, fees, remaining commitments and timing independently. Hypothetical: credible $150 of net proceeds in three years with no interim flows. Pay $90 against $100 NAV: MOIC 1.667x, IRR 18.56%. Pay $110: MOIC 1.364x, IRR 10.89%.
At a 15% hurdle the maximum price is 150 / 1.15^3 = $98.63, so the first passes and the second fails - in this illustration. A 110% premium can still work if credible proceeds are higher or earlier, and a 90% price can fail if NAV overstates quality. Secondaries can reduce blind-pool risk and shorten distribution timing, but GP-led vehicles may carry concentrated exposure, reset fees and a fresh long hold.
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The full workbook
The paid file contains 85 source prompts collected from 2020 onward: 47 worked answers, 29 practice frameworks and 9 research checklists. Every prompt has a recorded round. Filter by round, group, type, and topic.
Rounds: First Round 36, Superday 42, plus smaller phone screen, second round and final round sets. Groups: Restructuring 38, IB 18, Strategic Advisory 15, IB (Strategic Advisory) 7, Private Capital Solutions (Secondaries) 7. Largest topics: Behavioral 25, then Restructuring 12 and M&A 10.