Private equity is an alluring career field. Firms in the industry pay large salaries, and with the incentives and bonuses you can earn on top of your salary, the potential is there to make a lot of money, even in your first year. Moreover, the career carries a lot of prestige in the finance world. One reason private equity is so challenging to break into is these jobs are in such high demand; recent graduates compete with seasoned investment bankers and stockbrokers for precious few job openings in private equity. The field's controversial reputation among many politicians and pundits only serves to heighten its allure to money-hungry young people. Particularly during the presidential election, private equity firms, one of which candidate Mitt Romney served as CEO during the s and s, were painted as corporate raiders, or soulless suits who forced themselves on companies eliminated jobs and cashed in for themselves.
Private Equity Job: How to Get That Most Coveted Job?
If you're new here, please click here to get my FREE page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking. Thanks for visiting! But most guides fail to disclose one important point: Unless you have exactly the right background, it will be an uphill battle to break into private equity. Whenever I write about this topic, we tend to get questions from non-traditional candidates who believe that their backgrounds will appeal to private equity firms. For example:. Unfortunately, you have a very low chance of getting into private equity from these fields.
The secrets to a successful career in private equity
I went straight from university into a job in private equity. This makes me one of the lucky ones: most private equity funds don't have the resources to train you, so they like to hire people who've been trained by investment banks or big consulting firms. Some funds do have their own graduate training programmes now, but getting in still isn't easy. Personally I probably contacted around 2, people before I got this job. If you want to join a private equity fund, you're probably going to need to know how to build financial models already.
Overall, in , the US private equity sector directly employed 8. Just in that one finding, there are quantitative and qualitative shortcomings. Private-equity backed companies buy out companies with existing employees.