As a top 100 private equity recruitment firm, executives and recent college graduates often ask us how to enter the private equity sector. This post is more relevant to the latter when considering a career in Private Equity. If you’ve considered a career in Private Equity, you probably already know it is one of the most challenging industries to join. Because it is prestigious and commands high salaries, it is a competitive process with specific criteria for new hires.
In the past, the best way to find a job in Private Equity was to start your career as an investment banking analyst at one of the large international investment banks or an elite boutique investment bank. That experience would help you land an associate-level role.
Some Private Equity recruiters may hire people away from other firms or bring in promising undergraduates for the somewhat new role of analyst. But there isn’t another path into the industry for the most part. Now that you understand the landscape, what are some things you can do to improve your standing with the hiring teams at Private Equity firms and their recruiters?
One of the first things you’ll need to understand is the Private Equity hiring and recruitment process. They have on-cycle and off-cycle processes, which are very different.
As mentioned above, the on-cycle process is the more traditional approach for investment banking analysts. The process is highly focused and quick. If you are an analyst who makes it through to receiving an offer, you won’t start your new role for over a year while you finish your analyst program.
Anyone who is not one of these investment bankers goes through the off-cycle process. For example, if you’re not in a major city, work at a smaller firm, or want to jump from consulting, the process is longer; think months instead of weeks, and the process is quite different.
Your biggest challenge will be convincing the private equity firms and their recruiters that you have the training and financial modeling skills and have seen enough deal activity, preferably mergers and acquisitions and leveraged finance, to operate on par with their on-cycle hires.
Whether you are an on-cycle or off-cycle candidate, how can you improve your chances of joining a Private Equity firm?
As with any job, your resume is likely your first impression, and if you don’t catch a Private Equity recruiter’s eye in the first few seconds, you won’t get a second look. Ensure it is in a traditional format and that all grammar and syntax are correct. Add your GPA and standardized test scores. List a few noteworthy deals on your resume and have a separate deal list of everything you worked on.
If you get through the gauntlet of applicants and land an interview, you’re already ahead of the game. While the process differs for on- and off-cycle candidates, the interviews will be consistent. While going through the process and doing your research, take time to network with friends or colleagues. Be prepared for multiple rounds and meetings with various people at the firm. Also, be prepared for trick questions and being asked to solve a riddle.
Private equity firms will question your technical acumen, test your skills with a case study or modeling test, and ask about your role in each deal and the size of the deal teams. They’ll also be looking for a culture fit, how thoroughly you researched their private equity firm, how they differentiate from other private equity firms, and how well you understand the industry.
After the interviews, follow up with a “Thank You” email to everyone you met. Hopefully, you will get one or multiple offers. This will most likely be a career stepping stone and not a long-term home, so select the offer you think will give you the best experience and be balanced with the people you want to work with.
If you want a role in Private Equity, consider looking at Private Equity courses and training programs. These can help you better understand the Private Equity sector and provide additional insight into the skill sets that can get you noticed.
For more information on Private Equity recruitment and related financial careers, send us a note.