The Executive Suite: How to Get a Private Equity Job

Saturday, September 28, 2013

How to Get a Private Equity Job

Even in the midst of this horrific economic crisis, jobs in the private equity industry are still in high demand. Unlike hedge funds, private equity firms generally have more staying power and are less susceptible to market variations. Now more than ever, it's time to get back to basics as you search for the perfect private equity job.

Suggestions

If you are focused on private equity I'll take it as a fact that you have have a good understanding of finance and investing. As a reminder, private equity firms typically work with well-established, profitable companies, so if your passion is really emerging technology or social networking platforms you might adjust your search to focus on venture capital instead of private equity.
If there is a particular company or product that interests you as you go about your daily life, see if that company has had any private funding and find out who the investors are. You will be more successful if you are investing in an area of personal interest and passion.
Once you've identified a few firms with companies that you admire and have researched, be proactive. Try to find an angle. Undergraduate and business school alumni networks are always a great entry point.
Cold call a partner to set up a meeting. Leave a voicemail in addition to mailing (physically) your resume. Emails can get lost or blocked in spam filters. Make sure in your first contact that you are very specific with regards to your intentions. General 'get to know' you messages are always discarded.
Come prepared to discuss the firm's portfolio in detail, and be well versed on that firm's competitors. How do they differ? Try to make the investing partner start selling you as opposed to the other way around. This information is easily available on the web, and it's amazing how few candidates seek it out.
Ask insightful questions. In particular, questions about the business model of a portfolio company are a great way to show you that know your stuff. What's the revenue model? Why are [insert portfolio company X] gross margins so high? Why does the nearest public company trade at such a high EBITDA multiple?
Be persistent and follow up. Private equity investors are busy, and they get paid to invest money (so interviewing is often a distraction from that goal). Develop and share your own proprietary investment ideas with the firm. Ideas are easy - execution is the hard part.

Tips

Never be afraid to make a cold call
Ask the assistant arranging the interview what to wear -and know the assitant's name when you arrive for the interview.
The odds are of success are low, but don't get discouraged.