2020-21 Vacation Scheme Applications Discussion

[ZaraB]

Can I just say a special thanks to @Dheepa for giving very comprehensive interview advice when I did not know where to start and @Jacob Miller for his excellent article on interviews, I feel like I was able to use the advice in my interview prep (particularly focusing on breaking down the A within STAR to show my thought process and go into detail and the useful advice of using bullet points to prep my answer rather than having a script!!!) I feel much more prepared for my interview now!

 

[Jacob Miller]

Can I just say a special thanks to @Dheepa for giving very comprehensive interview advice when I did not know where to start and @Jacob Miller for his excellent article on interviews, I feel like I was able to use the advice in my interview prep (particularly focusing on breaking down the A within STAR to show my thought process and go into detail and the useful advice of using bullet points to prep my answer rather than having a script!!!) I feel much more prepared for my interview now!

Thank you so much for the kind words! Beyond delighted the article helped and got everything crossed for you for the AC

 

[GK8997]

Could someone explain how the use of leverage increases the profit for a PE firm?

So by using leverage a PE firm can spread the equity they have into multiple investments. For example, instead of investing in one company for 100m and realising 300m in profit, the firm can use 25m of equity plus 75m of debt and spread their 100m and invest in 4 companies. This means that their profit will be higher (hypothetically let's say 4x higher at 1200m). The only thing they have detracting from their profit is interest on any debt, which will be lower than the extra profit they can make.

Also, if interest rates are low, debt can be cheaper and by investing less equity, if the company becomes insolvent, the PE firm is losing less of its own capital than if it had invested all of its equity in that company.

 

[Pallatablelawyer]

Could someone explain how the use of leverage increases the profit for a PE firm?

you have 10 million of your own money .. then you borrow 60 million to buy a 70 million pound loaf of gold bread.. all of a sudden you find a way to combine said gold bread with silver which turns your bread into gold & silver bread which ends up being worth 140 million pounds in 5 years.. you sell it .. pay back your 70 million.. you keep your 10 million plus a nice 10 million..that’s a crude way of the profit ( the tiny difference w pe is you usually pay the borrowed money over the course of the lifetime of the investment as opposed to one lump sum.. this way the business pays and you offload it at its new shiny price)

 

[lawloser]

Could someone explain how the use of leverage increases the profit for a PE firm?

Prepping for that mirkland final interview? 😅 😅

 

[TC4me]

It isn’t really the article as such, it’s the story behind it they care about.

Therefore, citing specific details like it’s date isn’t really relevant. What they want from you is your analysis and opinion of the story in the article, and potentially an opinion on how the article is written. For instance, you just basically summarising/reciting the article is a basic level. What they really want from you is to form your own opinion and analysis on the matter.

So think about the causes and effects. Think about how this may influence things in the future, more than factual references alone.

As Jess has already mentioned, focus here on analysis rather than descriptive stuff - small things of no consequence like date and author are immaterial. I discuss different response structures to a question like this in some amount of detail in my recent article: https://www.thecorporatelawacademy....w-firm-interviews-monday-article-series.3286/

Thank you so much, I’ll take a look at the articles and keep your comments in mind

 

[Kola]

Prepping for that mirkland final interview? 😅 😅

 

[Kola]

So by using leverage a PE firm can spread the equity they have into multiple investments. For example, instead of investing in one company for 100m and realising 300m in profit, the firm can use 25m of equity plus 75m of debt and spread their 100m and invest in 4 companies. This means that their profit will be higher (hypothetically let's say 4x higher at 1200m). The only thing they have detracting from their profit is interest on any debt, which will be lower than the extra profit they can make.

Also, if interest rates are low, debt can be cheaper and by investing less equity, if the company becomes insolvent, the PE firm is losing less of its own capital than if it had invested all of its equity in that company.

Thank you, you've managed to clear this up better than any article I've found online, so much appreciated.

 

[GK8997]

Thank you, you've managed to clear this up better than any article I've found online, so much appreciated.

No problem at all, glad I could help and best of luck with any upcoming interviews/ ACs!¬

 

[pleasecanwegetjobs]

Guys when you booked your slot for V&E and it asked you about practice group preference and dietary requirements did you put anything?

No I didn't and now I am stressing ahhh

 

[sparky10]

Thanks, that's good to hear. At the time I felt I did well and had a good rapport with them, now I've had time to think about some of my answers I'm less confident haha. Just make sure you know everything about yourself and your CV. They'll be a few curveballs and some questions where you think "wow that's out of left field" but just remain calm, as I guess they're trying to see how you cope under pressure.

It was totally fine online. Make sure they send you the Teams like by the day of the interview because I didnt get mine until 10 mins before which made for a very panicked call to GR!

Is yours for TC?

Thats really positive! I'm sure you will be fine.

Thank you - that is really helpful. Yeah, I anticipate curveballs will be thrown haha. Did they ask you typical questions like why S & M and why law?

Omg I can imagine - I believe I have a teams link already provided (hopefully it is the right one!).

Yeah I attended the winter workshop in december and decided to apply for direct, were you the same?

 

[ZaraB]

As a general rule is it bad to discuss a competency example of a job that is not mentioned on an application form?

 

[Jacob Miller]

As a general rule is it bad to discuss a competency example of a job that is not mentioned on an application form?

No not at all, I've used plenty of examples for experiences not listed on my application or even my CV - I keep my CV strictly to 2 pages so have to be selective with what I feature on it; some apps limit you to 6/8 work exp inputs so I just choose the most relevant stuff to put on the app

 

[Jxmxs00]

Thats really positive! I'm sure you will be fine.

Thank you - that is really helpful. Yeah, I anticipate curveballs will be thrown haha. Did they ask you typical questions like why S & M and why law?

Omg I can imagine - I believe I have a teams link already provided (hopefully it is the right one!).

Yeah I attended the winter workshop in december and decided to apply for direct, were you the same?

They did, but they were worded a bit differently. Because I'm a non law student, the exact wording was "so youre doing History - what on earth are you doing applying for a commercial law firm then?" and "what do you know about Slaughter and May." He pushed me on both of my responses to these questions to try and probe further.

I applied for the summer work experience scheme, think I should find out soon good or bad.

 

[sparky10]

They did, but they were worded a bit differently. Because I'm a non law student, the exact wording was "so youre doing History - what on earth are you doing applying for a commercial law firm then?" and "what do you know about Slaughter and May." He pushed me on both of my responses to these questions to try and probe further.

I applied for the summer work experience scheme, think I should find out soon good or bad.

I see - I am sure you answered both well.

Well I genuinely hope you get it. Did they tell you how long it would take to find out, and if successful is it a phone call?

 

[Asil Ahmad]

I was looking at one of my applications that I sent off last month and saw a grammar error. I dunno if it is the system or I did it by accident. I accidentally might have well I didn't leave a space between 2 words and stated Iwill. What do you lot think should I be worried about that grammar error. I mean will this be a straight rejection.

 

[Jxmxs00]

I see - I am sure you answered both well.

Well I genuinely hope you get it. Did they tell you how long it would take to find out, and if successful is it a phone call?

Thanks ))

They told me id find out by mid Feb probably and end of Feb at absolute latest. I don’t know if I'll hear by phone but I'm almost certain that TC direct do.

 

[Jacob Miller]

I was looking at one of my applications that I sent off last month and saw a grammar error. I dunno if it is the system or I did it by accident. I accidentally might have well I didn't leave a space between 2 words and stated Iwill. What do you lot think should I be worried about that grammar error. I mean will this be a straight rejection.

Obviously can't give a cast-iron guarantee but it's highly unlikely to be the sole factor for an immediate PFO. People make far bigger mistakes than a wee grammar error and still receive offers!

This is one of the reasons why I had a rule never to re-read applications after I'd submitted them though haha, far too anxious a person for that!

 

[sparky10]

Thanks ))

They told me id find out by mid Feb probably and end of Feb at absolute latest. I don’t know if I'll hear by phone but I'm almost certain that TC direct do.

Well best of luck with it - not too long to wait.

Yes, I thought it might be via phone.

 

[Asil Ahmad]

Obviously can't give a cast-iron guarantee but it's highly unlikely to be the sole factor for an immediate PFO. People make far bigger mistakes than a wee grammar error and still receive offers!

This is one of the reasons why I had a rule never to re-read applications after I'd submitted them though haha, far too anxious a person for that!

Thank you Jacob for this and that is good I have heard some firms have this 3 grammar error rule but I dunno if that is for every firm which is why I asked.

Also lol that just made my day your no re-read application rule lol.