Interview: Private, Private Equity
By BankersBall on May 3, 2006 in Cube Life, Interviews, Private Equity
Q: How does one get a job in P.E.? What’s the typical track?
A: There are three ways to get into private equity. The first is to join a firm after completion of a 2 year banking / consulting program. You then typically are hired as an associate, although don’t let the title fool you, you won’t have any analysts working for you. The second is to join a firm after completing an MBA. You then will typically be hired as a senior associate, a position you will keep for one to two years. Being a senior associate isn’t very different from being a junior associate, only a little more work and responsibilities as you are being tested to see if you should be promoted to the VP/Director/Principal level (titles vary from firm to firm). The third is to found your own firm.
Q: Do you have to have an Ivy League undergrad and/or MBA degree?
A: No, but it helps open doors.
Q: What’s a typical P.E. firm interview like? Anything special you’re looking for?
A: PE firms are small, and culture matters above all else. Providing you’ve got good prior experience and recommendations, it will mostly be a fit interview. You will be asked what sectors you would like to invest and such types of questions.
Q: What does a candidate have to do or say to get booted out on their sorry bum?
A: You should know the firm you’re interviewing with. If you’re working in the telecom group at an investment bank and the PE firm you are working with has a website saying they focus on traditional manufacturing businesses, don’t bring up the last company you were told to analyze by your MD. It won’t work.
Q: How did you do get where you are?
A: Work.
Q: Why do you think P.E. is the latest, greatest thing right now? (or so says the media)
A: Because it’s here to last.
Q: What about the lifestyle, is it better or worse than other finance jobs?
A: Less stressful, more regular.
Q: What about the dough? A relative comparison is fine.
A: A first year associate makes approximately 150 -200 K (three year out of undergrad). A senior associate should make 200-250. A principal 400-500.
Q: Do P.E. shops care whether you have an M.B.A. or not?
A: Larger firms typically do, although it’s hard to generalize.
Q: What do you call someone who works in private equity? Private equityers? Ballers?
A: Investors, bankers?
On Jun 2, 2006, b said:
I know this is coming in a little late…but I help with a lot of the interview process at my firm. One of the things I know that my firm looks for is knowledge of our portfolio companies. Do your homework. The website almost always has a “strategy” on the website as well as the portfolio companies listed. Learn about them. Bring it up. Also, don’t inflate what you know about modeling. A few wise questions by the interviewer can distinguish between the real deal and a flubber. Also, this should go without saying, but for god’s sake, spell check your resume. And by all means write a kick ass cover letter mentioning all of the above.
On Jun 15, 2006, advice said:
If you’re not coming out of a bank, work your network. See what that turns up.
On Mar 20, 2007, Oliv said:
hey, B –what u said is very helpful! I am just coming to a stage of choosing my 1st career. Equity fund sounds very interesting! It’ll be great to keep in touch with you! Are you a regular to this web?
On Apr 30, 2008, Ash said:
Hi, I’m currently an third year undergraduate trying to get into PE, most likely through I-banking first. This summer I hope to better prepare myself for fall recruiting interviews. Can you please shoot me over some advice as to what exactly I should do to prepare? What books should I read in particular? I know nothing of modeling, how should I get started? (any particular text?)
All your advice would be greatly appreciated.
On Apr 27, 2009, brad said:
Hi, I am currently working at a retail bank as a licensed officer. Is this the banking experience that is previously listed on this site? I am looking to make a move into PE and am trying to get a feel if i am barking up the wrong tree. If anyone has any advice or info i would greatly appreciate it.
Thanks!