Private Equity (PE)
Also called PE
A PE firm is a company that uses debt to purchase a company, hoping to flip it on in 3-6 years at a favorable return.
Why Private Equity (PE) matters in investment banking interviews
Even in banking interviews, you'll be asked how sponsors think, because they're the buyers on the other side of your deals. Understanding their return math tells you why they can or can't pay a given price.