The Executive Suite: How to Transition Into Private Equity With a Non-Finance Background

Saturday, September 28, 2013

How to Transition Into Private Equity With a Non-Finance Background

Private equity is a notoriously difficult field to get into, especially without a finance background. You'll be competing with hordes of laid off bankers with more experience, as well as talent scouted from Harvard, Wharton and Stanford. That said, getting into private equity is very possible, especially if you have non-finance skills and experience that can help a private equity firm improve their existing portfolio. More firms are today focused on improving their companies than acquiring new ones.

Suggestions

Rewrite your resume to specifically cater to private equity firms. Highlight any experience you have in making large deals, even if you played a non-finance role. Prominently display any experiences or skills you have that imply that you'll be able to help improve a private equity firm's portfolio company performance.
Contact a private equity recruiting firm. These are firms that specifically help PE firms interview, screen for and find candidates. Make sure you're 100% prepared before contacting a recruiting firm, as you only get one shot to make an impression. Three well known PE recruiting firms are CPI, Oxbridge and SG Partners.
Look for connections in your own network to people in a PE firm. Having a foot in the door can go a long way towards helping you get into the industry. Look through your LinkedIn profile for connections, as well as your rolodex and even your Facebook.
Consider learning a European language. Many PE firms today put a strong emphasis on hiring people who speak multiple languages, especially since many investments today are going to the European sector.
The interview process differs greatly from firm to firm. For larger firms, you can expect very detail-oriented, technical or financial questions. Smaller firms may try to determine your fit in the corporate culture more, as well as try and determine if your skill set can really make an impact. Almost all firms will quiz you on the LBO model. You should be able to build a skeleton LBO model in under 30 minutes to pass the interview.