Private equity firms are controlling entities that collect or pool together capital that is then invested in a specific interest or opportunity. Often private equity firms will use strategies such as venture capital to buy a company or business, looking for opportunities to improve or maximize that particular investment before re-selling it for a profit. To work at a private equity firm, a lot of preparation and experience is required; specifically in related fields including investment banking, consulting, and analyst work. Use these steps to find work at a private equity firm.
Edit Steps
- 1Gain education and experience in private equity.
- Receive a master's degree in business administration from a business school or obtain a degree using a part-time or executive method while working as a banker or private equity intern. You can also enroll for an executive education or certificate program that will enhance your career in private equity, such as investment.
- Alternative options include working for start-up firms or for the government, where you can make an easy transition into working for a private equity firm. Investor relations or risk management are also great alternatives if you can't get into a private equity firm right away.
- 2Explore private equity firms.
- Decide if you want to work for a top-tier firm or if you're willing to accept a position at a second- or third-tier firm that may have less stability.
- Research and learn about each private equity firm you want to work for to prepare for potential phone screenings and interviews.
- 3Design a resume with focus on private equity.
- Always place your most relevant work experience at the top of your resume, such as your experience as an investment banker or private equity intern. Minimize your pre-banking or non-related private equity experience as much as possible.
- Provide explicit detail about mergers and acquisitions, restructuring deals, and leveraged finance if you have investment banking experience. If you have experience as a consultant, focus on writing about your finance-related projects and clients.
- Include your education at the bottom of your resume when trying to land a job at a private equity firm.
- 4Contact private equity firms and submit your resume.
- Use networking to gain entry into a private equity firm. See if your friends or contacts can recommend you for a position or help you get into a firm.
- Send cold emails and make cold calls to the private equity firms you want to work for. Be proactive; don't wait around for firms to call you.
- 5Prepare for private equity firm interview process.
- Familiarize yourself with potential interview questions and scenarios commonly asked by private equity firms. Ask your friends and contacts about their prior interview experiences or research using the Internet as a resource.
- Prepare to be asked about or tested on the modeling of leveraged buyout analysis, private equity case studies and previous deals you have worked on as an investment banker.
Edit Tips
- Begin networking in school and getting to know your classmates. Referrals and contacts may prove useful in the future.
- Become involved in activities that will get you noticed by people in the private equity firm industry. For example, become assigned to your bank's financial sponsor team if you are an investment banker. This will help you expand your network of contacts.
- Larger private equity firms will focus on asking more technical questions regarding processes, whereas smaller private equity firms are more interested in learning about your reasons and motivation for entering the private equity industry.
Edit Sources and Citations
- http://www.mergersandinquisitions.com/private-equity-recruiting-in-2550-words/
- http://www.mergersandinquisitions.com/private-equity-interviews/
- http://www.vault.com/wps/portal/usa/vcm/detail/Career-Advice/Industry-Overview/The-Private-Equity-Industry-Interview?id=650&filter_type=0&filter_id=0
- http://blogs.wsj.com/privateequity/2009/02/05/tips-for-landing-a-job-in-private-equity/
- http://www.jobsearchdigest.com/private_equity_jobs/career_advice/how_to_get_a_private_equity_job
- http://www.mergersandinquisitions.com/private-equity-resumes/
- http://www.fins.com/Finance/Articles/SB126659738440348449/The-Perfect-Private-Equity-Resume
- http://en.wikipedia.org/wiki/Private_equity_firm
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