FAQ: How to Work in Private Equity?
by Theo O'Brien
As a new resource to this blog, I will be answering the frequently asked questions that I receive by e-mail each week. Today I am focusing on a common one, an student or financial professional says they want to know how to work in private equity. If you want to learn more about how to start a career in private equity, see our Private Equity Career Guide .
Question: I want to know How to Work in Private Equity
Answer:
This is a complicated question because there are many ways to begin a career in private equity. Many professionals come from a career in a related industry such as investment banking, corporate finance, venture capital, etc. This path is typically that of someone who studied business in college and went straight to work in finance or business management. After a few years, this person decided that private equity is an attractive field because of the competitiveness and challenges in deal making and, of course, the compensation.
Others try a more direct route to the industry. These people know that private equity is where they want to work and they do not want to work elsewhere. In my experience, this is a much more difficult way to enter the industry. Private equity firms to hire a person with experience or proven talents to bring to the firm and who does not require a lot of training. For a rookie who has just graduated business school and is looking to make the jump to the "big leagues" without spending some time in the "minors", it's hard for a private equity employer to know whether the candidate is qualified or ready for a demanding job (forgive the baseball references). The firm does not want to spend a lot of time training a new hire only to see the professional quit after a year.
So, I recommend getting a good amount of experience working alongside private equity firms or in a related field. There are a few ways to get this experience.
1. You can devote 2-4 years at an investment banking firm or corporation and then use that experience to try to make the transition. This shows you can work in finance and have been a quality employee for the investment bank or corporation.
2. Try to land an internship with a private equity firm or venture capital firm. This is difficult, many firms would rather invest the time training an employee than an intern. But if you can get some work experience at a firm, you will be able to show future private equity employers that you are able to work hard and that you are familiar with the field. The firm you intern with may even take you on at a full-time position if you prove yourself.
3. Work for a service provider to private equity firms. I work with a hedge fund marketer who got his start with a service provider to hedge funds. He started out working unpaid to prove to the marketer that he could bring in money for clients, then he was hired full-time. This gave him experience working directly with hedge funds. After a year or two he had built a good list of contacts at hedge funds and was receiving job offers to work in-house for several hedge funds. The same goes for private equity firms. Working at a service provider to private equity firms is a great way to learn more about the industry and develop relationships with private equity firms that may hire you later on.
4. Consider a training or certification program. There are a few training programs out there that will help you develop some experience and knowledge of the industry so that you have something to show in an interview. This will also build your familiarity with the industry so you can talk confidently in an interview or when networking. To get information on our private equity training program, click here.
These are just some answers to how to work in private equity. Private equity professionals come from many different backgrounds and there is not necessarily one perfect path to a career in private equity. Hopefully this has given you some ideas on how to work in private equity. |
发表于 2011-6-15 12:25
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