By Chase Nerison
The world of private equity can be very difficult to enter. This area within finance holds significant prestige and is highly sought after. While opinions on the practice of private equity are controversial, I find it very interesting and would love to work with the companies. Risking millions of dollars to turn around a company excites me. PE employees are compensated well, which attracts many, but it is the practice itself that allures me. Getting a job in this field requires hard work due to the scarcity of openings. Since I have been doing that hard work, I have learned somethings along the way. To create the best opportunity for a career in private equity, familiarize yourself with headhunters, obtain relevant work experience, master technical skills, and be patient.
Since most private equity firms are very lean, their human resources are typically handled by a third party. It will be very beneficial to familiarize yourself with the headhunters. To meet the firm’s executives, the applicant will likely have to impress the headhunter through interviews, screenings, and testing. Oxbridge Group, SG Partners, CGI, and Glocap are some of the top headhunting firms with relationships in Private Equity. Since there is such high demand, it is a good idea to initiate contact with the headhunter. This will provide the opportunity for your name to be in the conversation.
Like most jobs, relevant work experience is key in private equity. Most firms do not recruit from college campuses as they typically do not hire students without work experience. Since demand is so high, these firms can require experience for every opening and attract the most qualified candidates. Internships are a great way to enter this industry. If there are no internships in private equity, check out investment banking, venture capital, or asset management. The most common route is investment banking. One must succeed in their field for two or three years, and then it will be easier to enter private equity.
Another key component of entering private equity is mastering technical skills. Along with analytical and people skills, there are four technical skill requirements.
1. Leveraged Buyout (LBO) Modeling (Shown Below)
2. Mergers & Acquisitions (M&A) Modeling
3. Financial Modeling
4. General Financial Analysis
Grasp these skills, and it will significantly help your chances of landing the job. If you do not learn these skills through schooling, there are many online. courses to prepare you.
Lastly, be patient. The hiring process can be intensive. No matter the qualifications or how great your resume looks, some firms interview for positions over a year in advance. The interview process takes three to six months with many steps along the way. This shows the importance of acquiring relevant work experience while actively searching for a job in private equity. In the interview process, candidates should follow these steps:
Know your resume extensively
Use headhunters and recruiters
Prepare to interview by practicing with others
With three to six interview rounds, there will be multiple numerous individual interviews in each round. Set yourself up for success.
Consider the focus of the position offered
Is the position industry-specific or generalist?
Prepare for detailed analytical questions
These can include four-hour computer tests and performing an LBO
Private equity is not an easy industry to enter, but it should be easier if you familiarize yourself with headhunters, obtain relevant work experience, master technical skills, and be patient. The process is long but worth it if it is your passion.
Works Cited
DePersio, G. (2021, May 19). 3 tips for finding a job in private equity. Investopedia. Retrieved October 3, 2021, from https://www.investopedia.com/articles/professionals/092315/3-tips-finding-job-private-equity.asp.
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