The Executive Suite: Private Equity Jobs

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.

______________________

Custom Office Supplies

Office Memo Pad (Red)

Office Memo Pad (Bright Yellow)

Weekly To Do List Notepad (White)

Iridescent Pearl Finish Business Card Template

Eggshell Business Cards Template

Eggshell (Textured) Business Card

French Linen Business Card Template (White)

Real Estate Agent Business Card (White Linen)

Weekly Planner Notepad (White)

Weekly To Do List Notepad (White)

Phone Message Pad

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.