Here’s The Interview Question You’ll Be Asked By Michael Dell’s $10 Billion Hedge Fund

John Phelan

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John Phelan, co-managing partner and co-founder of MSD Capital, revealed the one question he uses every time he interviews someone for a job.The question comes from legendary dealmaker Richard Rainwater, who is known for helping turn around Disney in the 1980s.  

When Phelan was in business school he wrote Rainwater a letter for a summer internship.  Rainwater returned his letter with a phone call. 

During their conversation, Rainwater asked a question that Phelan now he uses to this day when someone tries to get a job with MSD Capital, the $10 billion family office hedge fund of Michael Dell.

“He asked me a question which to this day I still use in interviews, which was ‘Of all the businesses you’ve looked at what’s the best one and why?’ It’s a really tough question if you think about it,” Phelan said on CNBC’s “Squawk Box.”

Here’s his answer.

“My answer — what I said to him was, I think a great business, (though) I haven’t spent lot of time looking at it would be parking garages in New York City because you have a fixed asset, not a lot of capital intensity and you got future development.”