how to get a private equity job

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How to Get a Private Equity Job

Competition for Small Number of Jobs


• Firms selective about who & when they hire

• Most firms have small number of staff• Firms hire based on need

– Many different factors drive needs• Competition is high

– Financial professionals withmore experience

The Usual Suspects


• Network of contacts• Education

– Ivy League have long been schools of choice• Harvard Business School grads comprise

>27% of senior leaders at PE firms• Tuck School of Business @ Dartmouth is also well

established center for PE hires

• Less critical for PE professionals with <5 year’s work experienceSource: Job Search Digest “Private Equity Compensation Report”

Before Private Equity


InvestmentBanking29%

ManagementConsulting21%

Other8%

PublicAccounting6%

MBA9%

Other Student20%

Industry6%

HedgeFund1%

Source: PrivateEquityCompensation.com

Education & Experience


• MBA’s earn higher base & larger bonus on average *– Variance almost disappears with >5 year’s

work experience• Combination of academic credentials

& strong employment track record– Junior positions: financial skills & quick study– Senior roles: industry contacts & ability to

build rapport with executives


Entry Points


• Investment banking– Provides training for

intense analytical & financial modeling skills

• Private equity networking– Connect to people in

targeted firms via 2nd & 3rd level contacts

• Increasing focus on operational experience

Recruiters…How Important?


• Recruiters & job boards account for largest single source of job opportunities


Personal network 22%

Professioinal network

20%

Recruiters & Job Boards25%

Previous employer relationship

12%

Founder7%

School7%

Other7%

How Did You Find Your Current Position?

Positioning Yourself


• Come in contact with people in private equity industry

• Broaden your network– May uncover an opportunity to join a firm

• Develop strong relationships with niche recruiting firms– Headhunters

Consider Making a Move


• Other professions can offer a springboard into private equity– Management consulting, law, accounting,

operations

• Experience as senior level exec– Industry that interests

PE firms– Transition easier with

proven track record

THE BACK

OFFICE

Mergers & Acquisitions Experience


• M&A transactions – closest to private equity work

• PE firms will look at:– Your contributions to a deal– What you learned– If you were part of an unusual transaction

• Polish skills – in research, due diligence, discounted cash flow, debt

structuring & LBO modeling…

Get this training at: FinancialModelingCourse.NET

When the Going Gets Tough…


• Not for the faint-hearted

• Smart, talented, determined people succeed

• Persistence & networking

• Perseverance & ability to sell– Helpful throughout

PE career– These are skills

needed to convince CEOs, potential investors, partnersin your firm

Where Do You Want to Be?


There are a number of strategies to improve your chances:• Work in areas, such as investor relations & risk

management

• Work for a portfolio company of a PE firm

• Take a pre-MBA analyst position in a PE firm• Job that involves M&A to build your track record

in deal making• Gain operational experience or deep industry

niche experience


Thank You

Visit JobSearchDigest.com for more information

Images used with permission from Microsoft

how to get a private equity job

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