How to Get a Private Equity Job in 2,550 Words
“How can we fight this fight with the brightest and best educated rushing off and working night and day to do private equity deals and derivatives trading?”
-Ben Stein, Looking for the Will Beyond the Battlefield
Derivatives trading… maybe not so much anymore. But PE continues to be a big draw, pulling in bankers like bees to honey – despite the fact that most firms are barely doing any deals lately.
Yes, we’re at that stage of the year when newly minted Analysts (and some Associates…) are thinking about what they’ll do next, only months after starting out in investment banking.
But no one seems to know much about the recruiting process, how it works, who’s involved, what you need to do, and how long it takes.
Who – Firms & People Involved
I normally avoid discussing specific firms (no, I still won’t “rank” banks, sorry), but we’ll break that rule here.
Private Equity Firms
I divide PE firms into “The Big Guys” – Blackstone, KKR, TPG, and anyone else focused on the largest deals – and “Everyone Else” – middle-market and smaller firms that do everything from tiny $20MM deals to acquisitions up to the hundreds of millions or low billions.
Even with a terrible market, each firm recruits at least a few new hires each year (places with only 5-10 “investment professionals” might just hire 1 person).
Headhunters
Almost every PE firm uses headhunters to recruit candidates.
These aren’t banks where you have tens of thousands of employees and room for HR – these places are lean and efficient, and they view recruiting as something that can be outsourced (at least the “getting resumes” part of recruiting).
So if you don’t have a wide PE network, you need to contact these headhunters to have a shot at breaking in.
There are only 3 worthwhile firms for PE recruiting: Oxbridge, SG Partners, and CPI. Theoretically, Glocap and a few others do it too, but the highest-quality (and highest-hiring-probability) opportunities – at both large and small firms – are found through those three.
How to Contact Them
Depending on the bank / group you’re working at, you may actually be contacted by the recruiters first. But if you’re not, the best method is to get a referral from a friend or co-worker who knows them.
Failing that, cold-emails and cold-calls also work – but it’s hard to get on their radar if you don’t have a brand-name bank on your resume.
Recruits
A wider set of candidates tend to be interested in PE compared to banking, so let’s go through the major categories.
Students – Undergraduates & Business School
This is a small group because few undergraduates are qualified. To have a shot, you need to have a previous banking or PE internship and go to a school where firms actually recruit undergraduates (or get really lucky networking).
At the MBA-level, it’s not much easier. As one PE principal once put it to me, “To decide who gets an interview here, we…. look at who has done PE before.”
It’s really, really tough to get in out of business school unless you’ve done banking/PE before. And these days, you’d be competing against a ton of laid-off bankers and financiers so it wouldn’t exactly be “easy” even if you’ve had that experience.
Investment Banking Analysts
Current Analysts are the biggest group that headhunting firms target. If you’re at a bulge bracket, chances are that you’ll be contacted in January or early February by headhunters, meet with them, and present your story, background, and deal experience.
There is a fairly large bias against anyone who’s not at a bulge bracket. It would be hard to move from a middle-market bank to KKR, for example, unless you had a great connection there and could go around the screening process.
It is incredibly important to impress the recruiters you speak with, because they filter you based on your knowledge/experience and whether you could pass the “airport test.”
As with any other interview, show that you’re smart, that you can do the work, and that you’re likable.
Do not underestimate the importance of headhunters – they are literally the gatekeepers for PE recruiting.
Consultants / Anyone Else Working in Adjacent Industries
Lots of management consultants want to make the switch to PE, but there is also a bias against anyone from a non-finance background. If you’re coming from a consulting background, you’re better off targeting firms that are known for hiring consultants (e.g. Golden Gate Capital, which hires Associates primarily from Bain).
Or you could go for anything smaller and more focused on operational improvements / turnarounds as opposed to the “financial engineering” that you see at larger firms.
This is just speculation, but in the current market, consultants may be gaining an advantage because most firms are not doing deals – they’re just improving their existing portfolio companies.
If you’re working in a closely related industry, like corporate finance / strategy / business development at a Fortune 500 company, you also stand a chance in the PE recruiting process.
Your best bet is smaller firms and anything that focuses on a specific industry – so if you worked in Disney’s corporate strategy department, go for middle-market media-focused firms.
Private Equity Analysts / Associates
Private equity firms also hire from competitors and other firms in the industry.
If you’re already in PE at a smaller firm, you won’t face as many obstacles in moving somewhere bigger as a boutique banker would.
Since these places are very small (Blackstone, the largest, only has around 500 “investment professionals”), fit is super-important and they can afford to be highly selective.
You’ll be tested on your modeling skills and deals, but fit is key to closing the deal if you’re making a lateral move.
Mid-Level Hires
Another category of recruits: anyone who’s at the mid-level in an adjacent industry like consulting or corporate finance.
If you’re in this category, you probably have a diverse set of experiences, so the process will be less standardized.
You need to figure out a coherent story that shows why you’re so interested in becoming an investor – even if you’ve had a string of several different jobs over the past 5-10 years.
Rather than aiming for the likes of KKR and Blackstone, you’re better off going for anything that’s more niche – if you’re an environmental consultant, look into any smaller firms that are doing clean-tech or environmental investments, for example.
Managing Director / Partner-Level Hires
Another category of recruits, Partners / Managing Directors can also hop from firm to firm, moving from investment banking to PE, or from PE to PE, or almost any other combination.
At this level, it comes down to how well you know the Partners at whatever firm you’re moving to. Anyone in this position can “do the work,” so it’s often more about pre-existing relationships – as opposed to more junior hires, where you’re less likely to know anyone in advance.
When – The Timeframe
This one is greatly dependent on who you are and which firms you’re applying to – you could say there are 3 different “categories” of timeframes.
Large-Cap PE Recruiting
The largest firms start contacting bulge bracket analysts in January/February, continue speaking with them through March, and usually conduct interviews and make decisions in April/May.
These dates refer to recruiting for the year after – so if you get an offer in May of this year, the job would start in the summer of next year.
Middle-Market and Smaller Recruiting
This is a bit more random and the process is less standardized. In general, smaller firms start later – usually right around the time the biggest PEs are finishing up with recruiting – and continue on throughout the fall of the given year.
There’s usually a drop-off in recruiting into the winter, only picking up again in the beginning of the next year.
Everyone Else
The timeframes above refer to recruiting for entry-level hires – Analysts / Associates, mostly coming from investment banking backgrounds.
If you’re more experienced and are coming in at a higher level, the dates above may not apply to you. Particularly for anyone at the senior-level, hiring is done on an “as-needed” basis, and there’s no set number of recruits each year.
Where – Locations
The above descriptions refer mostly to private equity recruiting in the US. In other regions, especially anywhere without a mature industry, the process is more haphazard.
I’m not an expert on how it’s different in China vs. India vs. Estonia, for example, but if you know something about this and could tell us how it’s different in your own country, feel free to contact me and I’ll update this article.
Within the US, there’s some bias toward staying in whatever location you’re currently in. Anyone at a West Coast office will more likely speak with West Coast recruiters and get West Coast opportunities. Same for anyone in New York, Chicago, etc.
This doesn’t mean you can’t move elsewhere if you want to.
But as you progress within finance, you do become more specialized – whether by industry, geography, or both.
Why – Living the Dream?
It’s 2 AM and you’ve just finished up a massive pitch you’ve been working on. You start working on your private equity resume and suddenly a thought hits you… “Why?”
Why you’d want to move into private equity from another field is an oft-ignored part of the entire recruiting process.
We covered a lot of this in The Myth of the Buy-Side Job, but recall that private equity will not be a significant improvement to your lifestyle (in most cases). This is especially true at the biggest firms, where hours can be worse than banking.
There’s some truth to getting paid more than you do in banking / consulting, but only a few firms guarantee specific bonuses.
In some cases, you may actually take a pay cut to move into PE – especially if you are a senior-level executive elsewhere or you’re moving in from another industry and you get “demoted” in the process.
As with anything else in finance, pay / “improved” hours / models and bottles (come on, you know I had to include at least one reference in this article) are poor reasons to do PE.
The best reason: if you’re interested in becoming an investor – either moving up the ladder at one firm, starting your own investment firm, or doing something independently (as an angel investor, for example).
Oh, and if you think PE experience makes you a shoe-in for Harvard Business School, think again – these days a lot of laid-off financiers are going back to school and admissions committees are losing their love for pure-finance-looking-guys/girls.
How – The Recruiting Process
How does the recruiting process actually work from beginning to end?
The larger firms are more standardized and follow a process similar to bulge bracket banks, whereas smaller firms have more extended processes and take longer to make decisions.
Resumes
The first thing any headhunter / recruiter / PE guy will do is ask for your resume. We’ve covered private equity resumes before, so no need to go into that in detail again.
You should spend most of your space on whatever experience is most relevant – for a banker, this would be M&A / Leveraged Finance / Restructuring deals; for a consultant, it would be any finance-related clients / projects; for anyone in business development, it would be acquisitions you worked on.
Go into detail on the best deals / clients / projects to speak about in interviews and reduce the rest of your experience.
Initial Meeting
Your first meeting is usually with the recruiter representing each PE firm. They’re trying to weed out anyone unqualified and assess who has good modeling / deal experience.
Make sure you pick the right deals (more on that in Private Equity Resumes), and can explain how you made substantial contributions / did significant modeling work for each of them.
And make sure you come across as personable – a lot of my initial meetings were spent discussing adventures in Asia and other random topics that had nothing to do with finance.
It’s like anything else in business: you can be the best-qualified person in the world, but if the person you’re speaking with doesn’t like you, he or she is not going to work with you / promote you / recommend you.
Following this initial meeting, recruiters may introduce you to specific firms (if you’re deemed “worthy”).
Interviews
Interviews can be a wild card and depend greatly on your background and what you’re applying for. We covered a lot of this in Private Equity Interviews, but here are the most important points:
- Nearly all PE interviews involve an LBO modeling test, case study, or both.
- Large-cap PEs will focus more on technical questions. Many interviews consist exclusively of advanced/obscure technical questions.
- Smaller PEs are more fit-focused and try to determine your true motivation for moving into the industry. You should still expect case studies and modeling tests, though.
- For these modeling tests, learn how to build a simple LBO model quickly (30 minutes or less). Don’t know how to do this? Stay tuned for an upcoming product…
- For case studies, focus on simplicity and don’t try to come up with a really complex analysis. Being articulate is more important than being complicated.
- Anyone from a banking/PE background should know his/her transactions very well.
- Anyone coming from a non-traditional background needs to explain how he or she would fit into PE despite having no relevant experience – usually the best strategy is to focus on your operational experience and explain how you can pick up the finance side.
Selection
Big firms make decisions quickly and usually wrap up recruiting by April/May.
Smaller places prolong their decisions because 1) they can afford to be selective and 2) they are ultra-concerned with fit. I’ve heard accounts of candidates going through 5-10 rounds of interviews at smaller PE firms, and going to dinners, lunches, and other events before getting an offer (or a rejection…).
If you’re applying to a large firm but are not coming from a bulge bracket analyst background (e.g. you’re lateraling from another PE firm), the above does not apply and you may still go through many rounds of interviews spread over months.
Receiving an Offer
It’s almost impossible to receive multiple PE offers – typically, a firm only gives you an offer if you agree to accept it beforehand.
It’s not like the banking recruitment process where schools prevent firms from screwing people over – you’re not protected by an institution here, so the firms you’re interviewing with can do whatever they want.
At smaller firms there’s more room for negotiation on salary, bonuses, and other terms – but your negotiation power is directly proportional to your experience and what level you’re coming in at.
So if you’re going for PE right out of undergraduate, don’t think you can “negotiate” your way into a $500K base salary.
Living the Dream
Just remember everything here and you’ll be on your way to the promised land – or at least you’ll never have to do a pitch book again.
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Hello,
I am a Vice President in M&A at a leading Canadian Investment Bank.
At Canadian PE shops, the equivalent private equity title for an i-banking VP can vary from that of a Senior Associate (a demotion in a sense) to that of a portfolio manager or director.
Does anyone have a sense for what level I might be able to crossover to in PE?
Dave,
I’m at a Big 4 firm within the Valuation services group and looking to transition to IB subsequent to obtaining my CA.
Would most appreciate it if you’d be willing to chat re: IB.
Thanks.
After reviewing the team of private equity investment professionals at KKR, I realized that a vast majority of them have completed their undergraduate degree from prestigious schools in the U.S. (HYP, NYU, Stanford, Wharton, etc.). I currently attend a public school in NYC and I am maintaining a high GPA.
Am I at a major disadvantage during the recruiting process assuming that I finished two years of being an IB analyst at a top BB bank?
I figured that the name of the school isn’t a powerful determining factor anymore since we live in different times. Is this true?
At top PE firms yes you are at a disadvantage without a top school name on your resume.
Is NYU considered prestigious enough for KKR?
Yes, though I am the worst source when it comes to prestige
So you don’t need an MBA to move into PE? What I got from this is you become an analyst then interview the following year and then join PE the next year as an associate. Is this right? you don’t need to become an IB associate first?
No MBA required. In fact an MBA wouldn’t even help much unless you did IB or PE first. Becoming an IB associate first is a poor idea because you’re already too experienced by then. Very set path for PE at least in North America.
Is it possible to move from being a CPA at a decent named firm to PE in your late 20′s? If so what is the best way to leverage myself?
Possible but tough without transaction experience. Try to move to a transaction or IB-type role at a Big 4 firm first.
How good is the Msc in Finance and Private Equity from LSE?
Good. http://www.mergersandinquisitions.com/investment-banking-networking-london/
More of a general question, if you start off in the middle office (e.g. risk) is there any hope in hell of getting into PE?
It’s possible but you have to take a less direct path and probably do another degree to get there.
Just one question, when you guys say that you basically need to have IB experience before doing PE, what sort of IB are you talking about? Do you mean stricly Investment Banking division or is sales and trading also included?
No, strictly investment banking. You can get in from other fields but its much harder and S&T to PE is nigh-impossible since the skill set is so different.
Hi, I got an interview with Morgan Stanley PE internship in asia. If it do get the private equity internship at Morgan Stanley, what are my chances of getting a full time job in bulge bracket investment banking (Goldman Sachs IBD) compared to if I did a investment banking internship at Morgan Stanley?
Will a PE internship at Morgan Stanley help me be able to move into firms like KKR in the future? Is it harder or easier to go into KKR from investement banking or pe at bulge bracket?
thanks
Your chances are high.
Yes. I can’t answer for sure w the second question though I’d think it might be easier to move to KKR from PE at a bulge bracket
Nicole,
I recently went to a banking forum and a bunch of banks were there. I got a bunch of name cards but dont know really what to do with it. It was like 4 days ago, do I contact them for info interviews or do I just say thank you? Couldnt really find anything about this on the website or in the interview guide i bought from you guys. thanks!
Hi John! Thank you for buying the guide and for your question.
Yes I think you should email them, say thank you, and try to arrange coffee/info meeting with the contacts when you’re in their respective cities. If you guys are not in the same town, try to set up a brief phone conversation w them / meet them when they’re in town – say something like thank you for their time. You appreciate how busy they are. Tell them that you are interested in what they do, and ask if they can share w you their thoughts on the industry etc.
Be persistent. Don’t be a stalker though. Be nice, assertive and also patient. Some contacts might not respond. No worries, you just keep on and move on to the next.
HOW CHARTERED ACCOUNTANT CAN GO IN TO PRIVATE EQUITY
I’d suggest networking with people in the industry. This article might help http://www.mergersandinquisitions.com/private-equity-recruiting-in-2550-words/
Hi there!
I’m currently an international student in a Msc in Finance in DC. I have no relevant experience, and I want to make up for that.
Basically, for an internship, do we still have to go by headhunters?
Thanks in advance!
No. Just apply directly online or through your network. Headhunters are only useful for very senior hires, and in my experience, generally not useful for candidates
Ignoring the KKRs and Blackstones of the world, is it easier to get into middle-market PE from a bulge bracket (in LevFin) or a top middle market firm (sell-side M&A)?
depends on the GP and what they are looking for. Also depends on how you portray yourself and the deals you were involved in. I can’t really say.
just wondering if you can shed some light on why golden gate might look into hiring consultants rather than bankers typically. I’m assuming it’s their growth-equity dominant strategy which is more of a skillset from consultants rather than bankers?
Yes. I agree.
This question may be unique for you.
My skill-set as a recent undergrad graduate is far different than my peers due to intense self study, and I am wondering how much weight that can carry.
Formal skill set–
-BS in Finance (corporate finance focus)
-CPA certificate (will have in under 1 month)
Self acquired skill set–
Extremely high understanding in economics with world class expert level knowledge on:
-Money, credit, prices, banking, and financial organization
I am most proud of my ability in economics, and am very disciplined in my study of it, but how much weight will that carry?
There are so many bad economists (self taught of schooled) that I worry what sort of weight this would carry with an employer. It would be my first job in the investment field since college.
I would really appreciate any feedback.
Ability of economics is commendable though not exactly what bankers are looking for. Your experience in finance (internships/work experience) is way more important
If you have a genuine interest in economics and want to utilize your skills and interest, I’d suggest you to look at research roles – Economic Research, Strategy Research
Hi,
I am a corporate lawyer (PE focused) who was tapped by a MD at one of the mega funds to interview for a operational position. Work involves creating central documentation system, point person of all specialist groups for deal execution and fundraise and general fund management duties. What skill sets should I emphasize from my legal experience (3yrs) for the interview? Thanks as always!
Be able to talk about some of the deals you’ve been involved in. Have you had contacts w LPs? Since the role involves fundraising, it would be good if you have had access to investors in PE funds. I’d imagine you’ll also have to deal w quite a few people since you’d be the pt person for all specialist groups–Focus on your communication, interpersonal, marketing & coordination skills
Hello this is a very specific question referencing my particular situation.
Background:
My undergraduate degree from a top US 50 University (if not top 50 just outside) and a Masters in Management and Policy from a top US 20 university). I have one year consulting experience from a top tier a accounting firm (think KPMG/PWC) in the US. From there I moved on to a boutique investment bank in Nigeria where I worked as Analyst.
I have recently been interviewing for my next position and I have received offers from the investment banking department of a large South African Bank as well as a an offer from the strategy department from a growing well diversified conglomerate (business units include a Newspaper,Manufacturing (toothpaste, soaps and lotions), B2B chemicals, Logistics company and Retail Grocery Store).
I eventually would like to end up in PE/VC or as an entrepreneur myself in the emerging markets. Considering the young age of the PE field in SSA, the large number of SME companies as well as the known traditional route to PE (IB to PE), What job would you advise taking to achieve my goal. Thanks.
If you want to be an entrepreneur/VC – I think working for the conglomerate can help you build your industry expertise/experience if you eventually want to start a business in that field
If you want to be in PE, working in IBD will help
hey – taking a BO internship at a large PE firm. I’ll be working on the “credit team” – I’m trying to find out a little more on the daily and overall tasks this division does.
We usually post articles on FO roles so I don’t have this info for you. I’d suggest you to speak to your hiring manager and ask him/her to provide you more details on you role so you can better prepare for it!
Thanks Brian for the wonderful article.
Just two questions-do analysts, after working in ibd for 3 years, join pe as an analyst or associate? if associate, where do large cap PE firms hire their analysts from? only from HYP?
Second, as an undergraduate with an upcoming interview with a PE firm, how do I prepare for those technical questions?(books, websites,forum etc) I have been a huge fan of your website when preparing for ibd interviews, but felt there is relatively less information regarding the technical questions in a PE interview.
Thank you for your advice!
Hi, please only post the same question once on the website FYI.
Depends on the firm, I’d assume associate but it depends. IBs.
Have you checked out http://www.mergersandinquisitions.com/private-equity-interviews/ and our BIWS courses?
Even though it’s labeled “investment banking,” the guide covers advanced technical questions, your story, and how to discuss deal experience (see below) so it’s perfect for PE.The financial modeling courses include 3 different levels of LBO models, from “quick and dirty” to “super-advanced” so you can sign up for those to brush up on your modeling skills.
Thanks Brian for the wonderful article.
Just two questions-do analysts, after working in ibd for 3 years, join pe as an analyst or associate? if associate, where do large cap PE firms hire their analysts from? only from HYP?
Second, as an undergraduate with an upcoming interview with a PE firm, how do I prepare for those technical questions?(books, websites,forum etc) I have been a huge fan of your website when preparing for ibd interviews, but felt there is relatively less information regarding the technical questions in a PE interview.
Thank you for your advice!
Hi, please only post the same question once on the website FYI. We’ve already responded to this question on another post. Pls check
Hi, I am a CA (Indian equivalent of CPA) in India and am NOT currently pursuing CFA / MBA. I have tax consulting / advisory experience in setting up of private equity funds focussed on investing in India, reviewing agreements with the investors from an Indian tax and regulatory perspective, etc. I want to now enter the PE industry. Would my experience help in finding a job in a PE fund? Thanks.
Yes, probably more of a back office/operations role though I’d imagine.
what do you mean by back office roles in PE firms? Is it something similar to the back office roles in IB? Thanks for the enlightenment
what do you mean by back office roles? Is it something similar to the back office roles in IB? Thanks for the enlightenment
No, basically operations i.e. accounting, IT, HR, risk management and compliance roles – PE firms need an infrastructure to support their business.
Thanks Nichole. Actually, it will be greatly appreciated if you can shed more light on the different roles in a PE firm, which roles and how do they normally place people based on their previous work experiences. I read about the vault guide but seems they only listed researcher, fundraiser, dealmaker etc, which is far from being detailed enough.
Thanks for your sharing!
Thanks Nichole. Actually, it will be greatly appreciated if you can shed more light on the different roles in PE, which roles and how do they normally place people based on their previous work experiences. I read about the vault guide but seems they only listed researcher, fundraiser, dealmaker etc, which is far from being detailed enough.
Thanks for your sharing!
PE firms are usually lean and mean. Front office roles – I can think of investment professionals (those who conduct research on various investments and support general partners), investor relations professionals/fundraisers (those who speak to LPs and raise $$ for the fund/maintain relationship w LPs) and of course general partners (partners or even founders of the funds)
Back office roles – accounting, legal, operations, admin, HR (again this depends on how big the fund is. If the fund is small, front office peeps might have to do back office work too)
How they place people – most people from banking who interview w PE funds want to work as investment professionals, and frankly, there are more IP roles available than IR/other roles in PE funds. Most PE funds typically recruit IPs from the analyst pool in top IBs. Such analysts who break in are usually top of their class with 2-3 years of IB experience, or more.
Thanks Nichole!That really makes me feel more clear. But when I am applying for a PE firm online right now, I noticed that the title of the position is “PE analyst”. When speaking of “analyst” in your previous reply, were you talking the same thing as “PE analyst”, which is not inclusive of the back office position? Thanks!
Analyst – I’d presume its refers to “investment professionals”
You might want to check w the firm though
I am a first year analyst at a boutique investment bank. With the poor state of the economy, my experience has not been that deal heavy so far. I’ve been contacted by some headhunters but I don’t want my lack of real deal experience to immediately rule me out. Do you think it’s worth waiting a year to recruit (while also trying to stay on as a 3rd year analyst) so that I will be more competent in interviews a year from now?
Thanks!
I can see where you are coming from. It depends on the opportunity really. If someone is looking to hire, and they like you, I don’t think it would matter too much. However, there are merits to waiting for one more year to accumulate deal experience
Thanks Nicole! I’ve been hesistant to express this to head hunters because it seems that since they work for the “client”. Any thoughts on how “honest” a candidate should be? If I meet with them in January, my experience could definitely improve by spring for interviews….
Yes they do work for the client. As honest as you can be but also have reservations. I can’t tell you how honest you should be because it depends on the situation and the headhunter. You’ll have to decide for yourself.
Perhaps this is the best article, I have found on internet in last 1 month of research. I am currently working in business consulting with an IT consulting firm.
One of the PE firm (very small and just have a 1 page website) wants to hire me and send me back to my home country. There is a 50% salary cut, which I have to take.
I am ready for the same, but I am concerned about the risk. Can you let me know what are the relevant questions which I should ask them? What research, I should do about the firm before putting papers at current firm.
Thanks in advance.
Questions you should ask –
1. What are your responsibilities?
2. Who will you report to?
3. What are your contract terms – how many months notice, benefits?
4. What is expected of you in the first year? What about the second year?
Hi-I am a first year Debt Capital Markets analyst at a top BB. I work on a debt origination team and I am thinking about making the move to PE. I saw your post saying that it is nearly impossible for someone in S&T to make the move. I was hoping you could share your thoughts on DCM, as we work day-to-day with M&A. I have significant deal experience (10+ transactions ) but not as much modeling experience compared to an M&A analyst. Thanks.
I think most PE firms want people with solid valuation experience. Industry & M&A teams offer such experience to analysts though I don’t think DCM offers the depth of work (modelling) that the aforementioned teams provide. With the above being said, it also depends on the PE firm you’re applying to. Your background might suit some PE’s firms capital markets business http://www.kkr.com/businesses/capital-markets/capital-markets.php
Great posts and great answers!
I am recently considering leveraging my contact to land an internship offer at a boutique PE firm. My current concern, however, is this might not give me good exposure as compared to a BB IBD internship. PE firm internship has the disadvantage of small dealflow and thus little deal experiences as compared to a BB IBD internship. This disadvantage will be even more obvious in a boutique PE shop right?
The only positive thing is that a PE internship experience in my CV might help me get into a PE firm four years later, after 2 year IBD + 2 year MBA. As post-MBA rarely break into PE shop without prior PE experience.
Any comment on the boutique PE internship opportunity? May I rank things as following: large-cap PE internship > BB IBD internship > MM IBD internship > boutique PE internship?
It depends on which environment you thrive in (smaller teams or bigger teams) and the people you work with.
However, if you want to make a judgment based on prestige alone, I’d probably rank the below:
large-cap PE internship > BB IBD internship > boutique PE internship > MM IBD internship
Actually, my major concern is that I might not learn much at a boutique PE firm. Given that boutique PE firm does not have much deal flow, will it be common that interns there are literally doing nothing much?
It depends on whether you are staffed on a deal or not. You don’t need too many deal flows to keep you busy if your team is small and you are one of the very few interns there. BBs may have more deal flows but they also have more people to handle the workload
Thanks Nichole. While I have BB IBD internship experience, I wasn’t involved in much of the modeling, but rather I was doing mostly execution work, and pitches(i.e. powerpoint staffs). I am also not a finance major which means I don’t have very solid valuation knowledge except a course in corporate finance. In the case that I get the boutique PE internship largely through contacts, do you think the internship will be fruitful at all(i.e. will it be possible for me to be staffed on modeling assignments etc)?
It depends on your firm and your team. Can’t say.
I am currently a CPA working at a Big 4 Accounting firm in an audit position. Ultimately I want to get into PE. I have a bachelor’s in accounting/finance and a master’s in accounting. I also owned a landscape design/build business for 12 years and a consulting practice for 3. I initially went into accounting because the job market for IB jobs looked less than favorable. After being in audit at the Big 4, I have realized that if I’m going to work so much, I might as well do something I am actually interested in. How difficult is it going to be for me to transfer into IB or PE from my current position? Also, I was considering applying to an ivy league MBA program as a start? Any thoughts would be appreciated. Keep in mind I am in my early 30′s–Thank you-
You might want to explore operational roles at PE firms as a start (accounting related roles).
Going back to a top MBA would help if you really want to break into PE/IB and don’t mind being a few years older than the rest of your Associate class
What is the structure for the Blackstone PE post-IB 2 year analyst program? I’ve heard the analyst term thrown around and also pre-MBA associate titles. Does anyone know how it works going from IB to BX, do you enter as an analyst? Associate? Any help much appreciated…
Hi everybody,
thanks for the great post!
I currently work for a mid-market PE fund which mainly invests in the DACH region. I would like to transition to a larger, more international fund based in London. Any suggestions how this move can succeed?
Any ideas/thoughts are highly appreciated!
I’d network intensively with people in London. Also try to cold email people your resume. That might help.
Thank you for the great post! It was so helpful!
I’m a recent Msc in Finance graduate with 3 years unrelated to PE experience (international business – import/export). I also had an intern as Financial Analyst while pursuing my masters degree.
Now I had to move to a another state where I literally don’t know anyone. I would like to advance my career in investment portfolio / PE, but of course I understand that with my background it would be extremely hard.
So I was thinking of starting as unpaid assistant (or something like that) and make my way up. The problem is that for assistant positions normally no one posts openings online but rather bring someone they know.
I created a strategy: 1) find a boutique PE companies in the area 2) see who their CIOs are 3) cold-email them through business networks asking for an unpaid intern/ assistant position.
I’m just not sure if this is the right way to approach companies. I would appreciate any ideas/suggestions. Thank you!!!
Sure, it works.
Hi
How does an analyst stint at BlackRock FMA (Financial Markets Advisory) prepare you for a PE/HF exit op vs say an IBD stint at a BB?
Would it be a good job to move into trading later down the line if the above exit ops don’t pan put.
I’d imagine some of the valuation skills you pick up are transferable to PE/HFs though I think most PEs/HFs still prefer BB IB candidates
Yes, but it depends on whether you are a good fit for trading or not