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.
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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Great Article. I was hoping you could offer some advice specific to my situation.
I graduated at an unfortunate time (may 2009) and had no choice but to accept any decent job i got. Brief Background:
Merrill Lynch Intern (Global Wealth Management, worked with a team of Financial Advisors) (4 months)
Accounting Internship with a local Houston CPA firm (2 months)
Manager of Investor Services (Client services and relations, securities research, client investment reports) (11 months)
3.75 GPA Finance; Florida State University
I recently quit my job due to the low pay and lack of professional growth and moved to Charlotte, NC to network and hopefully land a better gig. After 2 weeks, I have made some solid contacts at a small Hedge Fund, Blackhawk Capital Mgmt. I’m thinking I’ll at least be able to get an informal meeting with some of the guys and hopefully an interview.
What is the best way I can leverage my background? How can I make my experience at the CPA firm sound attractive and relevant to a small Hedge Fund?
I would just point out how accounting is central to everything HFs do, especially when vetting companies and evaluating their financials… and you are in a much stronger position to do that and note anything suspicious vs. the typical banker who doesn’t know as much about accounting. Also talk about any clients in accounting where you did just that and uncovered suspicious activity / made judgment calls for your firm.
I’ll do just that… thanks for the tips!
i’m from Mumbai,India, and a commerce graduate-’bachelors’,with no work experience.I have a liking of joining a pe/vc related job, i also plan to do my mba in finance. can u plz suggest me the right kind of work experience i should take before i do my mba?
Anything PE or banking related… start with local boutique banks and ask about working there.
Great article! Can you suggest some headhunters for Europe?
Thanks
Luke
Honestly I am not that familiar with the European recruiting market – you might want to ask on WallStreetOasis and see if anyone there knows.
Hello, I am VP Operations at a major electronic manufacturing firm in the US and pursuiing EMBA at Chicago Booth with concentration in finance. I have unique international experience having worked in India, US, China, and Mexico and currently manage $100M P&L for my company. I would like to transition from manufacturing to PE. Do PE’s hire experts in manufacturing operations with eductaion/focus in finance to head their manufacturing interests? Any insight would be appreciated.
Regards,
JK
It’s very tough to do unless you have pre-MBA IB or PE experience. Sometimes they hire experts but more so if you’re a CEO or Partner of a firm. Focus on manufacturing-focused smaller PE firms and pitch yourself using the industry + finance knowledge angle.
Thanks for the quick reply. Can you please share the names of a few manufacturing centric PEs?
Regards,
JK
You can ask for firm names here: http://www.wallstreetoasis.com/forums/regional-boutiques
Excellent article, thank you. I realize that this is about I-bankers wanting to move into the PE world, but what about consultants looking to do the same? I work for a boutique (but well known, top tier) consulting firm, and have experience in a variety of consulting roles, including M&A. I’m curious about exploring opportunities in PE – any thoughts to this end?
Cheers.
You can do it but it’s much harder because PE firms don’t know if you can build LBO models or not – you will have to focus on PE firms that hire a lot of ex-consultants like Golden Gate Capital and highlight finance-related client engagements and show how you’ve learned modeling on your own.
Awesome article M&I, In my case I would like to secure a position with a PE firm in California but I am working with little to no experience or expertise in the industry just Series 7 and a degree in Economics from UC Davis. What paths can I go down to get there, where can I get my feet wet?
Sincerely
You need i-banking experience first, so consider local boutiques and smaller firms, move to somewhere bigger, then go to PE.
Sounds good, I’ve been checking out some engines for positions like this I can tell you they are hard to find. Majority of what I can see are for candidates yielding 10+ years in the business.
Kind of a catch 22; how to get into ibanking? get a job at a ibank! But they don’t either don’t hire non-experienced or don’t post jobs where everyone can see them (probable).
Am I looking for positions seeking Analysts? Or maybe there specific keywords are used. How about mailing lists where I can take a look at firms and shoot them a resume?
I appreciate all your hard work!
There are lists within the Networking Ninja Toolkit – otherwise they are almost impossible to find on the Internet all in one source. As with anything else, start with small firms, iterate, try again, go bigger, and so on.
Geat Article!
What do you make of Business modelling roles in PE? For one specific PE (real estate) company, it states that I would have a study package towards the CFA. I have been left confused by the job description though – if its a tech role why would they sponsor my CFA exams?
Also, I already have a guaranteed job as an trainee actuary next year, and so I am feeling confused as to which of the two has the better career options.
I know PE is well respected, but is the modelling side a back office role? If so, I might decline the offer and stick to the actuarial exams which I believe are more respected.
I don’t know about the CFA issue, sounds odd. Business modeling is middle/back-office, so the actuary role is probably better.
Hi,
I am currently employed as an analyst in a local boutique IB working in joint ventures & PE group. I come from a non target college & have 2.88 GPA & cold called my way in (Thanks for ur advice on that. It really helped). PE firms are more biased towards brands of school & look for target school background. What are my prospects of cracking in a PE firm? Do i need to take additional courses like MS Finance to increase my chances?
A Master’s program is definitely a good idea if you don’t have a brand-name school: http://www.mergersandinquisitions.com/investment-banking-masters-programs/
Great article, very informative. I’ve been employed as an analyst within commercial banking at a fortune 100 bank for the past year and a half. I graduated 2 years ago from a non-target school (although a great school) with a 3.1 GPA. In a couple weeks I will be transitioning into a capital markets (leveraged loan syndication and mezzanine finance) role with my current employer and plan to stay in it for a couple years. Do I have what it takes to transition into PE within a few years?
Sure but it would help to work at an official investment bank rather than a commercial one.
From browsing the bios of the professionals at many top private equity firms, it seems (contrary to what you have been saying) that 50% or more have come from consulting backgrounds.
Why does this seem to be the case?
I’m not sure which bios you’re looking at specifically, but at the entry-level they focus on recruiting former investment banking analysts because the skill set is very similar.
Yes, at the top levels they may come from different backgrounds but at the majority of PE firms (with some exceptions like Golden Gate Capital) PE associates are former investment banking analysts – feel free to ask around on WallStreetOasis to confirm.
My background is public accounting and I have the opportunity to work at a small mezz fund. I’m concerned about my career options if the fund were to go under or if I wanted to leave. Would it be difficult to transition to a mid-size mezz or even a buyout fund after a few years?
You would be more limited to mezz funds, but that is still way better than public accounting in terms of exit opps.
I am currently in a finance rotation program at a F500 company and am looking to make a switch to portfolio management. I was an intern at a well-known IB in 2008 and decided banking wasn’t for me. I enjoyed the modeling side of the work, but the hrs were brutal (yes, it’s easy to say “120 hr weeks, no problem” as your sipping a beer w your buddies in college, but it’s a different story when you actually have to do it) and the non-finance demands (change this font, reformatting, etc) would frustrate me at 3 in the morning.
In any event, I am interviewing for a portfolio analyst position at a well-known asset management firm that also does prop trading (at least until the Financial Reform Pesticide (ok “Bill”) kicks in). As a portfolio analyst I would be responsible for monitoring portfolio trends against benchmarks (specifically fixed income and related derivatives in this case), measuring performance, and, eventually, making buying recommendations. Is it common for this type of position to eventually lead to exit opps at a hedge fund or PE/VC firm? Thanks for the advice! Also, love the website, I’ve been a fan since 2008 as I was approaching my summer analyst program. Enjoy the weekend!
No, those areas are less common out of portfolio management. You really have to do banking to have a good shot at those, or trading for the hedge fund side.
I’m a second year law student at a top 5 law school with a top 5 business program. I came into LS straight from undergrad with relatively no finance experience. I have decided that I’d like to enter either IB or PE after law school because of the higher upside earning potential and more interesting work as opposed to biglaw (I already have a job lined up in biglaw). In order to bolster my resume to banks and PE shops I’m taking every finance/transactional related class offered by the law school in addition to 4 finance classes at the business school (law students can take 4 biz classes for free). I’ll be sure to highlight all of that finance on my resume. My question to you is, how likely is it that I’ll be able to break into IB or PE having gone straight from Undergrad to law school with no finance in between? This summer, I’ll be doing 1B+ transactions at a top law firm.
It’s not very likely because most banks do not recruit at law schools. You would have a better shot with a few years of corporate law experience.
What about Middle Market Banks and PE firms(that generally don’t recruit at any school)? Is there any way that I can network my way into a BB interview?
Never say never with networking. Contact alumni and anyone else you can find via LinkedIn, Facebook, and other sources and see what comes of it. Banks rarely hire fresh law school graduates but it’s worth a shot, you will definitely have better luck at small places though.
What would you recommend for someone looking to go into PE and has a Sales & Trading background? How valuable is a program like Analyst Exchange for making that transition and securing interviews for a Summer internship?
I plan to start b-school in Fall 2011 and would like to secure a pre-mba internship (willing to work unpaid if necessary). Is it worth it to do an Analyst Exchange program (costs about $5,000) in an effort to get live deal experience and prove my ability to succeed in the industry?
Heard mixed things about that program and that some of the “banks” are not real companies. You’re better off getting a solid internship at a small bank or PE firm on your own via networking and then going to business school.
Hi,
I am working with a top investment bank in Mumbai as a quantitative modeler for last 2.5 years, since my graduation. I am currently interested in joining a PE firm in Mumbai. What kind of hurdles I might face and is my background good enough to get myself into a top PE firm?
Regards,
Shradha
Probably not – usually you need true front office IB experience where you work with clients. Best bet is to transition there first and then go to a PE firm. http://www.mergersandinquisitions.com/investment-banking-india/
I have a master’s in accounting from UT McCombs and six years experience in public accounting, the last 3 of which have been in the Trasaction Advisory Services Practice of Ernst & Young focusing on the tax piece of transactions, purchase price allocations, due diligence, structuring, etc. I was recently promoted to Manager and have decided to assess my options. I am most interested in getting into PE and staying on the buy side since this is where my experience lies within TAS. What is my best course to obtain a position in PE? UT offers a weekend MBA in Houston. I can’t go full time due to wife, kid, mortgage but could swing the weekend option. Is this my best route? Your blueprint seems to suggest that it is….
You could still network in at this point if you’re in something close like TAS. I would try that for a few months first and if it doesn’t work out, consider the MBA. http://www.mergersandinquisitions.com/breaking-into-investment-banking-accountant/
I am a 2nd year IB analyst at a top-tier BB firm with the following relevant experience:
- Client Credit Management & Advisory analyst (1 year in industry-focused group): differs from credit risk roles at other BBs due to our front office nature. We model new deals (mostly sensitizing management’s projections vs. building out the model on historicals), dialogue with clients and internal relationship officers surrounding bank product needs, structure/approve new transactions, perform industry/mgmt/business/acct/enviro dili, negotiate docs, etc. Also responsible for ongoing portfolio management.
- Banking analyst(1 year in diversified group): focused on clients ranging from $20mm to $500mm in revenues, responsible for all aspects of each deal.
-Summer Intern: UBS Commercial Real Estate Trading Desk
-Summer Intern: ML Wealth Mgmt
Assuming I have standard BB deal experience at a firm that places high deal team responsibility on analysts, how do my PE prospects look? I’m comfortable with the modeling, fin. stmt analysis, credit analysis, and client-facing skills. Would like to work specifically on speed of LBO model creation (we use a standard template), equity/M&A processes (specific teams focus on that), and complex accounting issues I don’t run into daily.
You have a decent shot, but as always getting into the biggest places is close to impossible; most analysts end up at middle-market firms, which is not necessarily a bad thing (significantly better hours, pay is a bit lower, sometimes more interesting work)
I’m trying unsuccessfully to get into IB I went didn’t go to a top school I graduated two years ago and since then have been working as a accounts receivable coordinator. My network is no existent. I was thinking of getting my MBA to make my self more applying and develop a network. Would this be a good route to take? Please advice, thank you
Yes but you will need a pre-MBA internship first. http://www.mergersandinquisitions.com/business-school-rebranding/
Hi, I am a Chartered Accountant with BIG 4, Banking and currently Securities Regulator experience, all past and current experiences at senior level. I have a very good understanding of Investmmnet Banking and would like to break into PE or VC firms. Could you please suggest, how I could get into with my current state and/or what additional educational qualifucation would be required? or please suggest some courses which may fast track the process.
Second question, would age be a factor in getting into a PE or VC firm, I am in my early forties.
Is Toronto, Canada a good PE /VC destination or should I consider moving across to US or any othre part of the world.
Your response would be much appreciated, thank you in advance.
Nick
Toronto is OK but not the best place for PE/VC. On the other 2:
http://www.mergersandinquisitions.com/breaking-into-investment-banking-accountant/
http://www.mergersandinquisitions.com/age-investment-banking/
In the article, you’ve only mentioned how investment banking analysts break into Private Equity firms…what about Associates at a BB (MBA from a top 5 program). Do they use headhunters as well? Thanks
Associates don’t get into private equity. It’s very rare and happens more often in bubble economies. But yes if the economy is doing well they would also use headhunters.
What would be the ‘exit opportunities’ for an associate then?
Thanks for the great website by the way, its awesome!
Stay in banking or move to F500
So the best way to move up the ladder at PE is to come in as a former IB analyst after 2 years of experience? Also it would be really nice if you could do an article on hedge fund job life, pay, and recruiting. Thanks!
That’s not the only option, but in the US most PE associates come from IB. For HFs the difficulty is that they vary tremendously so it’s far more difficult to generalize than with PE, but I’ll see what we can do.
I am an investment officer (2 yrs. experience) at a $25 billion public pension fund, but I want a career in private equity (ideally I would like experience before going back to B-School). We get a decent amount of co-investment deal flow from major firms (Apollo, GS, MS, etc.), and I am regularly on the team reviewing these deals. I have recently been given the lead on a co-investment, and I have direct access to senior partners at the PE firm. How can I leverage this access to making the move into private equity?
Just for background, I come from a non-target undergraduate school (3.9 GPA), testing for CFA Level III Exam(although I know you see it as useless), and my CIO knows my goals regarding moving to PE and has offered to help me in the effort. Thanks, this is a great website.
I would talk to your CIO directly and ask what his advice is / if he can put in a good word for you. Then, after you’ve met the senior partners a few times and shown yourself to be reliable, you can ask them directly and say that you’re interested in moving into PE and wanted to get their take on it.
Hi, thanks for this article. This website has been really helpful.
If I eventually want to end up in mid-market/ growth PE (b/c of its relative lifestyle advantages, etc.), then does it make a difference whether I aim for:
1) Large fund jr. level -> Mid-market/ growth fund sr. level OR
2) Mid-market/ growth fund jr. level -> Mid-market/ growth fund sr. level?
Is there any advantage to doing 1), e.g., pace of advancement, reputation, etc.? Thanks!
Not really, 2 is fine.
I work for a boutique water rights consulting firm. We have done projects for some of the bigger banks and a few PE firms, but our core compentecy is valuing water. I know that infrastructure financing is continuing to be a looming issue and many PE shops are looking to private-public partnerships in the water space.
I have a undergrad in economics from a top school (3.75 GPA), and an MPP/MBA combo famous for their water program but not their MBA. I was top of the MBA class.
I’d like to break into a Large Cap Fund (Carlyle, Blackstone, etc), but feel like I dont have the credentials or contacts, even though I have the relevant experience for their infrastructure groups.
Do you have any suggestions gauged to getting noticed by a top-tier group? My MBA won’t get me noticed, my experience is not with a top investment bank or consulting firm, so I’m trying to dream up a way in….
Thanks
You really need to work at a top bank first to have even a 1% chance at the top funds. Start with smaller funds and work your way up, or go to a bank first and move to a larger bank, then go to a mega-fund.
Hello,
I am in Toronto currently working as a Cost Accountant at a construction company, I graduated in June 2010 and I had this accounting job before I graduated.
I have a Bachelors Degree in Finance and I have passed my CFA Level 1 and FRM Part 1, and am currently preparing for the CFA Level 2.
I want to build a career with a Private Equity firm of Venture Capital firm. I was wondering if working towards the CFA and FRM designations would suffice in getting landing me a job in PE/VC or even an entry-level position at an asset management fund. I have been applying for jobs for a few months now without much luck.
What kind of jobs can i expect to land with these qualifications? are these qualifications any good? What do PE/VC firms look for (apart from experience which i do not have)?
I have worked as an Investment Advisor for World FInancial Group for a year, part-time while still in school
http://www.mergersandinquisitions.com/degrees-certifications/
Hi,
Currently I am doing my second MBA in Emory university (1Y MBA). I am from Europe (did my undergraduate and first MBA there) and English is my second language. I have 4 years of experience in commercial banking (HSBC) and 5 years experience of a credit-analyst in a non-profit organization.
I want to understand my odds to land in a PE firm here in US. I have an international experience as well as went through training programs in Asia and Middle East.
Thanks
Brian
I know you hate CFA:) but what about obtaining some industry-specific certifications, such as CIRA (Certified Insolvency & Restructuring Advisor) designation from aira (aira.org). I am thinking about signing up for the course starting next week. In addition to that, I am also doing an internship with a company that reports on distressed assets and corporate reorganizations.
Graduating in May with Honors, 3.7 GPA from a state school with a Bank of America corporate finance internship under my belt.
Would the above combination improve my chances?
http://www.mergersandinquisitions.com/degrees-certifications/ I wouldn’t bther
Thanks for the great piece. After graduating in May from Columbia, I’ll start working for Citi Global Transaction Services (GTS) in New York, and wanted to ask how I can transition to PE – eventually? Should I first aim at transferring to IBD within Citi (I don’t even know if that’s possible)? I don’t think GTS will teach me any modeling or valuation skills, if so, is it absolutely necessary to buy a tutorial package in this case (such as the one your site offers)? How do you think I should proceed?
Yes I would go for IBD first – either within Citi or aim for a smaller firm, but otherwise PE is almost impossible. Tutorial packages can be helpful but aren’t always necessary, really depends on how much you already know.
Thanks for all the candid analysis/commentary. Useful article!
Re your comment on useful recruiters, would really appreciate if you could drop a couple names for good PE recruiters in Singapore and HK.
Thanks M&I
I don’t know of any offhand but maybe someone else can help out here
Thanks M&I. Would really appreciate it if anyone else has any ideas around this.
Cheers
Hello,
I am a lawschool graduate, did a master in law degree in corporate banking and finance law at fordham lawschool in newyork. I am looking to work in a PE. what would you advise me to start with and how?
Start here: http://www.mergersandinquisitions.com/breaking-and-entering-into-finance-part-ii-the-lawyer/
Thanks for the great advice. Just had a quick question though. You said that there’s a fairly large bias against anyone who’s not at a bulge bracket. Is this also true for anyone at “elite” boutiques such as Evercore, Moelis, or Lazard? Will they not get contacted by headhunters?
No you still get interviews
Do you know which firms recruits straight from undergrad in the UK?
Not sure about that but I would guess mostly larger PE firms with more established recruiting.
Great article! I have a background primarily in real estate investment brokerage. I have worked in the real estate field since 2003 as a real estate agent and subsequently a broker specializing in investment properties. I also obtained a finance degree in the process. I have always been interested in transitioning into real estate private equity, even if it’s on an entry-level basis. Any thoughts on whether you think I have a good shot at achieving this objective with my background? Any further advice would be helpful as well. Thank you in advance for your reply.
It’s possible but not terribly likely – better off going to a boutique bank first or maybe considering top MBA programs with a pre-MBA internship to switch over.
Thanks for your feedback. I forgot to mention that I have currently began the pursuit of the CFA charter and sit for the first exam this June. Does this added piece of information change your response at all?
Please disregard, I am new to the site and just read your piece/thoughts on the CFA. Thanks again for your feedback!
Great article! I have a unique background (practicing attorney in health information technology (10 years), MS in Informatics, heading to top 5 EMBA program) and am looking to transition from law to IB, PE or VC. I have little finance/modeling experience, but significant business development experience. Are the career paths I seek realistic given my background? I am considering seeking an unpaid position at one of these types of organizations if it means I can learn about the industry.
You could potentially do that but it won’t be easy – there are law to finance tips here: http://www.mergersandinquisitions.com/breaking-and-entering-into-finance-part-ii-the-lawyer/
I have work experience in finance KPO, I would like to enter in PE operation, kinddly guide how I get that.
There is guidance on India here: http://www.mergersandinquisitions.com/investment-banking-india/
Currently an undergraduate with an extreme connection to a private equity firm. Am contemplating whether or not to do an internship with this firm or use my other connection for equity sales internship (might be able to get me into Ibanking) at a bulge. I am sure that you are extremely busy, but also realize that you have a wealth of information and would like to discuss more details however in a more private (non comment; perhaps a messaging section) if at all you would be willing to listen to my short story or “pitch” thanks a lot.
I don’t offer 1-on-1 consulting but there’s some discussion of PE vs. IB at the entry-level here: http://www.mergersandinquisitions.com/start-on-buy-side/
totally understand and agree, this website is about helping which i’ve come to realize. that being said, is there any type of area on the website or perhaps a forum you are linked to where commenting on articles is not required? just a more general spot, i feel like commenting here might get seen by some people but certainly not all who would find it relevant. that being said, i’ll shutup if no such forum exists
If you’re a BIWS customer, feel free to ask comments or email questions there in private – I try to answer as many questions as possible here for free, but just can’t spend all my time on email / comments as it’s very time-consuming.
How can a technical person with may patents to his credit and with the great knowledge about the industry get into private equity.
It’s almost impossible, better to go to a VC firm looking for technical people (do a search here for “venture capital”)
Hi,
I am 29 and live in NYC. I recently applied to a few different full time mba programs and was wait listed. I am able to get into NYU PT and complete it in 2 years. I currently own my own a small marketing business but really want to get into PE. Should I go to NYU PT or wait for next year and reapply?
Thanks for any help,
Brad
I would ask students at NYU PT if there’s any recruiting there – opinions seem to vary and it differs greatly at various part-time programs (do a search here for “part-time MBA” for interviews). If there is significant recruiting, go there – otherwise re-apply.
Thanks for the help.
I was talking to a few friends in PE and they thought I would have a better chance to find an internship during the school year because there will be less applicants. I will just be going to school and will be free until 6pm when class starts. Is this true or in reality would this not work?
There might be fewer applicants but there is still the issue of whether or not banks recruit from the part-time program, which I don’t know. You need to find people who have actually gotten in from that program.
Hello,
Thank you for the great article. Are there differences between PE entities and PE arms of major banks? If so, would you mind expanding on what those are (in terms of recruitment, pay, etc.)? I am a sophomore undergraduate so this is some ways off, nonetheless your insight is greatly appreciated.
Best,
Meh
There are some differences but the recruiting process and so on are very similar and they look for similar people. I’ll see if we can cover that but feel it might be repetitive if there are no major differences.
Hi, I graduated with a BS in Finance from a top undergrad business program in 2008. Out of school, I started work at a BB in prime brokerage sales, but was laid off seven months later. I then found a job doing risk consulting for a year, and later moved to relatively large hedge fund where I currently work on the margin/financing side. At all of my three jobs, I have had to use Excel extensively to create elaborate models; however, none of them were valuation models. Outside of work, though, I have built my own valuation models. Can any of my above experiences be leveraged to get my foot in the door of a PE shop?
Potentially yes, but it will still be tough because they really are looking for former bankers most of the time; you would have to spin the experience as sounding relevant to financing or the deal structures that PE firms use.
Sir,
I have 8 years banking experience (international trade/trade finance and correspondent banking). Hoping to take study leave next year to complete a 2-year MBA programme in Harvard Business School.
Kindly access my chances of getting a PE job after graduation.
Regards
Godwin
Your chances are low unless you have had investment banking experience advising companies on M&A deals or debt/equity financings. They are pretty much looking for people who have worked in IB or PE before, sometimes from other fields like management consulting and TAS at Big 4 as well.
Hi,
I’m seriously considering changing my career from commercial banking to PE.
However, I’ll like to know if a one-year experience in IB -M&A deals or debt/equity financings(besides other years of experience in commercial banking) plus a Harvard MBA can improve the chances of getting a PE job with a top PE firm such as TPG, KKR, Blackstone (BX), Bain Capital, Carlyle, Providence, and Apollo.
Regards
Godwin
Yes potentially but there’s no need to get an MBA if you already have done IB at a top bank
I was under the impression that some of the decently known boutiques and MM’s would give you a good shot at the MM/growth PE firms. I’m not talking about Evercore, Lazard, etc. but rather smaller, decent boutiques such as Sagent Advisors, Peter J Solomon, HLHZ, or Allen & Co.
I’m not sure if I’m reading this wrong, but in this article you seem to give the impression that merely getting attention/interviews from PE or recruiting firms will be very difficult if you’re not at a Bulge Bracket or one of the top 3 “boutiques.”
If I were working at a boutique such as the ones mentioned above, and was trying to get into a small to mid sized PE firm, would I be looking at a long shot? Assuming I don’t have any great connections with a recruiting firm but do put in the necessary preparation and effort and reach out to PE and recruiting firms. I’m just looking for some sort of ball park odds of someone getting into PE from one of these boutiques. Doable with effort or a long shot?
You can still move into PE from those firms but it’s still quite tough. Keep in mind that many bulge bracket analysts are also competing for spots at middle market funds as well, so it’s not as if you have much less competition. You can still do it but you’ll have to be more proactive with networking, headhunters, and so on.
Hi,
I’m a undergraduate from Brazil and I have already worked in credit analysis in Citi (1 year) and now I’m working in the lending desk at another commercial bank. I would like to know what are the steps required to persue a PE job as an intern, meaning that I steel have 1 year to finish college. Yes, we’re a little bit different from US, students can work since the middle of the program. What should I know, what they expect and so on.
Thanks for your help
In that scenario it is really just about networking – if you look at some of the case studies and interviews here (http://www.mergersandinquisitions.com/recruiting) you’ll see some specific tips.
Hi,
I’m an undergraduate, I just finished my study and looking for a job. I have a shot in a local start up PE. The thing is its gonna be my 1st job, its a start up company. Is it wise to join a start up PE for the 1st job? My main concern is, its a start up PE.
Thanks
http://www.mergersandinquisitions.com/start-on-buy-side/
I am currently pursuing a Ph.D. in neuroscience at a top university. Becoming an academic research scientist has always been my primary aspiration, but I am interested in investigating other possible career options, as well. So, my question is: how much does a Ph.D. in neuroscience or biology or some related field enhance your attractiveness to a PE or VC or i-banking company (if at all)? And what is your advice for someone who might want to break onto the PE/VC/i-banking scene after obtaining a science Ph.D.?
Thanks for your help. Your website has been a very useful resource for me as I consider possible career paths.
It doesn’t, at all. Maybe in VC it helps a bit but for PE or IB, 0. http://www.mergersandinquisitions.com/degrees-certifications/
Hi, and thanks for the website!
I graduated at an unfortunate time (May 2009 from Columbia University) with a BA in architecture and an engineering background.
I worked as a post production manager in the Media Industry for a little while and then moved into real estate, where I did financial analysis and sales for a boutique brokerage firm. I worked on a few acquisitions but most of what I did is selling.
I am looking to move into real estate ibanking: Do you have any suggestions as to how I may want to proceed? I don’t have the relevant experience nor the brand name firms. Is an MBA my only chance? I am taking the GMAT this summer. Thanks.
You’d have to start with boutiques, cold call aggressively, and then work at a small firm for awhile before moving up… if that doesn’t work, MBA
I am looking the break into PE on the Africa side, after 15 years starting, buying and building companies in the U.S., and see a lot of American and European funds now setting up shop for this market. Most of the larger funds are based in, and investing from, Europe (London specifically). You mention “only 3 worthwhile firms for PE recruiting: Oxbridge, SG Partners, and CPI”. Given the information on their websites, they are US focused. Do you know the marquis recruiting firms in Europe?
Not really sure about that one, probably a more diversified set in Europe but would need to research it further
Hi,
I am management consultant currently based out of Malaysia. Its been almost 1.5 years as a consultant and I have done project major in the areas of operations consulting ( within ASEAN region. Most of the project I have done is with Automotive clients. Prior to this I did my MBA (major in Operations & Supply Chain) from Singapore. Prior to my MBA, i worked for almost 5 years in major Automotive companies in India.
Now I am looking a change into PE firms now. I have also enrolled to CFA this year to hone my financial skills.
Kindly let me know your thoughts that what are my chances of getting into PE now and what should be my approach.
Thanks
Your chances are not great if you already have an MBA. Best bet is to focus on boutique firms that match your background i.e. focus on automotive industry
Thanks M&I..Can you kindly provide me some information (list) of boutique firms which focuses on Auto industry??..Would be a great help..
There are some suggestions in the FAQ