Attention to transferable skills is growing in higher education. Problem-based learning (PBL) is increasingly used in management education for its promising potential to, amongst others, promote transferable skills, including problem-solving, critical thinking and teamwork skills. However, this relationship is seldom assessed. In this study, I use structural equation modelling to examine the effectiveness of PBL, measured through students' perceptions of satisfaction and skills development. Results show the development of transferable skills is explained by interaction with tutors and a host company, and defining teamwork rules. Satisfaction is explained by skills development, assessment issues, defining teamwork rules and understanding how organisations work. I draw conclusions and recommendations.