Do private equity firms hire undergrads?

Is it true that famous private equity firms like KKR, Black Stone, Apollo, and others recruits at undergrad level? If so then what kind of College do they recruit?

Private Equity out of undergrad

Private equity firms do hire undergraduates. However, there are usually only a handful of undergraduates from top schools that recruit directly into PE firms. Usually with previous experience in investment banking or private equity. Boutique firms with minimal recruiting structure can accept undergraduates too. Usually, these positions are given out based on relationships.

Some private equity firms that recruit out of undergraduate include:

from certified user @ledger123"

most places dont hire analysts straight from college, simply for the fact that they dont want to waste time training people with no work experience. some large funds hire analysts, but only exceptional candidates with prior banking internships and FT options. on the other hand, small lower mm PE firms without much structure could also hire analysts, but those are hard to depend on.

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I friend of mine got a Blackstone internship his junior year, but didn't get a full time offer. He did restructuring, not PE though. So I guess to answer your question, yes they do hire undergrads, but probably just for financial advisory and not PE. He goes to a target public school (UVA, UT, UMich, etc).

 
Severus:
Just out of curiosity, are there small/boutique PE shops willing to hire undergrads with good but not Harvard/GS backgrounds?

Yes. I came from a non target and got a job as a 1st year analyst at a boutique PE firm in Chicago without any IB experience. 3.7 overall, 4.0 double major and stats minor, two internships, honors college and a bunch of honors society shit probably helped though.

 

PE firms do hire out of undergrad, but you won't be working on deals. You'll most likely be doing sourcing for them aka finding companies to invest in and cold calling. Its good a good way to get your foot in the door, but don't expect to do anything too significant for your first couple of years.

 
Best Response

Blackstone for sure hires out of undergrad into PE. I think Silverlake has recently started doing the same. Bain capital not so sure but their credit hedge fund (Sankaty Advisors) hires straight from Undergrad.

Do not agree with nbburna at all. Sourcing roles are clearly defined as such from the start. The above mentioned names hire you to be an analyst in every sense of the word and as an "investment team" member.

Not trying to belittle anyones opinions but saying this on a factual basis.

 

If you could get a PE internships straight out of undergrad, why not leverage those experiences and try to get a PE SA position during your junior summer at a MF (i.e. Blackstone, Apollo, etc.)?

Often, the best way to get into IBD FT is to get the SA position. If you do two PE internships instead, you get two things against you: 1) having to recruit for FT positions for IBD which is pretty difficult and 2) having no prior IBD experience (this isn't a bad thing if you can spin your story right).

 

I guess it's still a little early to really decide either way. It's extremely unlikely for me to land an SA position at one of those firms (I have a 3.5 at a non-target) it seems. Thinking about it more, it's obvious that I should spend time pursuing both for next Summer. But as you alluded to, it's probably best to have experience in both, regardless of what I want to do after UG. I’m dying to work in renewables finance. Thanks.

 

Yeah I guess that makes sense. Realistically I think the best route would be to shoot for a banking internship for next summer (going into senior year), and then try to get PE for FT. At least that way there's some banking experience on the resume, and I'm sure PE analysts do a decent amount of modeling (although probably not the same amount as banking).

 

make sure you follow up when he told you to. if you didn't close the loop (when do you expect HR to begin scheduling interviews?), call him/her and do that asap. if they say they're starting to arrange interviews October 1st, call 2 weeks after that if you haven't heard something, politely ask for an update. and call him first, at the end of the conversation say something like "I realize this isn't your job, but I wanted to ask you since you've been so helpful, should I follow up with HR going forward to save you some time?"

stay persistent but not naggy, you've done what you can do. assuming you sent thank you email, he has your CV and all of that good stuff, just be patient.

 

Thanks for your reply. I will send him my cv in a weeks time because I have some work experience in another field that could strengthen my application. Also he says he will look up the right contacts within the firm to best help me get some experience. I do not think there will be interviews. He said they have had a few people come in and spend the summer with them and it was done through people they knew and it was organized informally. This position was not advertised.

 

Undergrad to PE?.... I hope you are some kind of wizard because BB training and development is, in my view, extremely important for a high fire power PE Analyst/Associate.

.
 

most places dont hire analysts straight from college, simply for the fact that they dont want to waste time training people with no work experience. some large funds hire analysts, but only exceptional candidates with prior banking internships and FT options. on the other hand, small lower mm PE firms without much structure could also hire analysts, but those are hard to depend on.

 

getting into a quality shop out of undergrad will depend largely on the brand name of your school, shallow as that is. doesn't hurt to try but i wouldn't set your heart on it unless you're at H/W

 
eleutheros:
More firms hire gay undergrads than straight ones. Sad, but it's just a fact of life.

gays and "underrepresented" minorities :/

"...the art of good business, is being a good middle man, putting people togeather. It's all about honor and respect."
 
eleutheros:
More firms hire gay undergrads than straight ones. Sad, but it's just a fact of life.

Beat me to it. That said, Silver Lake has a really really gay-friendly culture if that's what OP is into.

I hate victims who respect their executioners
 

I am currently working for a MM PE fund in Chicago and came from a non target. Networking is going to be your best bet as well as internships or clubs that illustrate your understanding of finance. It's a very different recruiting process from IB since most smaller funds don't have as structured of a process as IB's. I can tell you my path was; studied abroad and met a guy starting a hedge fund focusing in shipping (at a shipping conference in Greece), met a former colleague of my boss and got an internship the next summer at his small energy PE fund, and then after my senior year got connected to a guy my VP was working for. This guy was restructuring a large fund in Chicago and needed an analyst for the remaining portfolio's, phone interview and then flew up for 6 interviews with different members of the team. PM me if you have any more detailed questions, happy to give advice as i was in the same boat last Spring.

 

Difficult... a few places have a structured process (BX, SL, and etc.), but those positions are extremely rare to come by... and of you go to the smaller funds, the process is much less structured and you have to depend on heavy networking (esp. as an undergrad)... I know a few places that also recruit from time to time at specific target schools (i.e. Audax and Monitor Clipper Partners), but again very competitive...

 

I have some friends who work at Blackstone and other PE giants straight out of Wharton undergrad. It seems they are very selective in recruiting (they don't consider resumes from all but about 3-5 schools out of undergrad). Not sure about smaller firms though.

 
fratling:
The only person I know that got a megafund offer out of undergrad:

Ivy Target -> BB IBD Internship -> Top Group Internship (MS M&A, GS TMT) -> Megafund

I know someone who did Ivy Target => BB PE Internship => Megafund. Extremely competitive process, and this guy knew his shit.

Hi, Eric Stratton, rush chairman, damn glad to meet you.
 

yes. If you have connections it's not an issue. Here's a horror story for you: I had 3 rounds of interviews with Blackstone for a PE spot in London when I was graduating from an Ivy in the U.S. in 2008. At the time I had just decided that "PE was cool" and since there's "a month left in school, I should probably ask dad to make some phone calls and get my a job" (I've changed since then, but I was an idiot/asshole, acknowledged)... had a prepared AT ALL for the superday and known what DCF even stood for I'd have gotten the job... sigh

 

Obviously with the name International Pymp you must still be an idiot/asshole...

bahaha :-D

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Touche, good sir, at least you have a sense of humor about it. It's not so much cocky I have a problem with, it's guys that are cocky and take themselves too seriously that need a life check

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

I'm not at a mega fund, but I'm at a solid PE in London. I leveraged an invitation to interview at Blackstone London and cold called/emailed a number of shops asking for coffee and advice. Two firms were impressed with that and both gave me a FO internship. The one I chose even advised me that I should go the IBD route but if it doesn't work out I'm good to stay here once I graduate. Fucking sweet.

 

APAE, many thanks for your reply. I know that SLP recruits at the undergrad level but I am more interested in the actual interview process and not whos recruiting.

I appreciate your comment though!

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. See my Blog & AMA
 

Made it to PE straight from undergrad myself. Which funds recruit undergrads has been discussed before, just use the search function.

for FT, IB experience is required and for SA finance-related experience is whats most important. You should also tailor your story to what the fund looks for with new recruits (do they care a lot about pedigree? are they an operational-focused fund? then mentioning your operational research major might help in the interviews).

They will mostly focus on your previous finance experience and make sure that you have an understanding of it from an investor standpoint. financial modeling experience is also a plus.

Another thing that helped me prepare was to look at finance case interviews from different MBA case books.

Also, fit is paramount to these funds. Remember that the key driver behind undergrad recruiting efforts is that you can shape them to your liking without picking up the ¨bad habits¨ from IB.

 
blind_monkey:
for FT, IB experience is required and for SA finance-related experience is whats most important. You should also tailor your story to what the fund looks for with new recruits (do they care a lot about pedigree? are they an operational-focused fund? then mentioning your operational research major might help in the interviews).

They will mostly focus on your previous finance experience and make sure that you have an understanding of it from an investor standpoint. financial modeling experience is also a plus.

Another thing that helped me prepare was to look at finance case interviews from different MBA case books.

Also, fit is paramount to these funds. Remember that the key driver behind undergrad recruiting efforts is that you can shape them to your liking without picking up the ¨bad habits¨ from IB.

Great answer, thanks. Do you have any tips for finding out what the funds look for? What MBA Case Books can you recommend?

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. See my Blog & AMA
 

I tried the same myself. It took me a while until i had understood that if you wanna work in PE you need to have IB background. Even thoug, I received some offers I didn't choose PE because mostly these PE firms have 1-2 transactions per year. None of the top notch PEs is going to hire a person with no professional background at all. I'm almost 100% sure. PE is more about the whole process, especially Due Dilligence. Therefore, to be valuable for a PE firm, it is a prerequesite that you have a lot work deal experience. Certainly, there are ppl that broke into PE straigt after college but I doubt that they will be as good as someone who has a track record of let's say 5-10 transactions. You just have to be honest to yourself.

 
all_in:
I tried the same myself. It took me a while until i had understood that if you wanna work in PE you need to have IB background. Even thoug, I received some offers I didn't choose PE because mostly these PE firms have 1-2 transactions per year. None of the top notch PEs is going to hire a person with no professional background at all. I'm almost 100% sure. PE is more about the whole process, especially Due Dilligence. Therefore, to be valuable for a PE firm, it is a prerequesite that you have a lot work deal experience. Certainly, there are ppl that broke into PE straigt after college but I doubt that they will be as good as someone who has a track record of let's say 5-10 transactions. You just have to be honest to yourself.

There are a handful of megafunds that recruit right out of undergrad, meaning they recruit people without any FT IBD experience. I think the other points you mentioned are all a questions of perspective. If one wants to do PE, actually working for a PE fund from the start will probably be better, also as a learning experience, then working 2 years for a bank.

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. See my Blog & AMA
 
all_in:
I tried the same myself. It took me a while until i had understood that if you wanna work in PE you need to have IB background. Even thoug, I received some offers I didn't choose PE because mostly these PE firms have 1-2 transactions per year. None of the top notch PEs is going to hire a person with no professional background at all. I'm almost 100% sure. PE is more about the whole process, especially Due Dilligence. Therefore, to be valuable for a PE firm, it is a prerequesite that you have a lot work deal experience. Certainly, there are ppl that broke into PE straigt after college but I doubt that they will be as good as someone who has a track record of let's say 5-10 transactions. You just have to be honest to yourself.

wow what a Debbie Downer...what happened? You sent an email to Kravis and he didnt get back to you?

 

An increasing amount of people are skipping the 2-year stints with I banks and going right to HF or PE shops. I can only imagine it takes a lot of hours of networking and probably a good amount of cold calling, regardless of who you know. I wouldn't set your heart on a specific firm though, as I'm sure its more a case-by-case basis

 

There's a private equity forum by the way

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Some PE funds offer analyst positions as a way of taking care of grunt work that they feel isn't worth a pre-MBA associate's time. Straight hires out of undergrad, for the most part, are extremely smart (chances are they turned down GS TMT/MS M&A) and relatively cheap.

For example, CCMP Capital provides PE research analyst positions that focus on market research and due diligence rather than real LBO modeling. Some people are concerned that comparable roles at megafunds are similar, and that they would be able to gain more relevant experience at a BB before lateraling over and doing real work as part of a deal team.

 

This is not correct. While research is a big part of the job, the good analysts at CCMP do pretty much the same thing as the associates, including writing investment memos, building lbo models, etc. Not all of their analysts get promoted but that is their primary source for associates now. 2 of their current associates were analysts out of undergrad with them.

 

Can anyone shed some light on how the analyst programs at all these firms (KKR/BX/Bain/SLP/LGP/Audax/etc) are operated? Are they 2 and out like banking analyst programs, or are they hiring intending to keep you on as an associate? Is the position basically associate-lite, or is it more bitchwork (the way 7xEBITDA describes CCMP). Hours? Comp?

 

Perhaps I can shed some light on this as I was hired out of undergrad as an analyst at a VC fund. To give some color, I don't work at a Sequoia/NEA level shop, my firm is a $350M AUM fund that is a top quartile for the industry we invest in and we co-invest with a lot of the big names, we're just not a premier fund.

Anyways, I've had very mixed feelings about the decision I made going strait into a fund out of undergrad. I was the first out of UG hire for the fund, all other analysts/associates had done 2-3 years of IB or consulting. The difference is very apparent. You simply don't have the structured skill sets or process oriented project management abilities to be as trusted as the other junior guys, thus sometimes leaving you silo'd in a research/cold calling position.

Advantages of a bank: - You will likely get the very structured training regimen -- funds likely will pay for Training the street but that doesn't equal the same experience

  • In a strong IB group you will get much more exposure. I talked with an analyst in GS TMT who at the end of his 2 years had completed 20 transaction. 15 months into mine I've only worked on 4 deals, completing 2. --> Pros for the IB is you just get better at core technicals faster with more transactions --> Also at the IB you will have more mid-level junior guys who will rip your stuff apart and really mentor you until your good. You may not get this at a fund as there are usually smaller teams with tighter bandwidth.

  • When you're really in a time crunch on a deal, the guys with IB experience will be trusted by the MDs for the fire drill turn and you will be left in a support role if you're lucky

  • Finally, if you're like me and you realize you like growth equity more, or Visa versa, other firms will be weary as you are not their mold hire. You won't be automatically dinged, but if you can't absolutely prove that you can go head to head on a LBO or M&A model against the IB analysts interviewing, even your transaction experience and portfolio company management knowledge won't help you and you're done.

  • Other little thing: You won't be in as big of a group, your network will be smaller, you won't always have as many social opportunities as your friends in big IB groups (not a big deal - i just noticed that being on a 5 member analyst/associate team vs my friends at banks).

I don't necessarily regret my decision. I've just noticed in my position where I'm more interested in PE, the growth funds are very hesitant to hire me as I have been doing VC where as IB analysts are experienced with growth and buyout deals. If I was looking to stay in VC, I feel it's pretty equal to IB, minus the larger transaction volume and core competencies exposure.

I wrote this really fast so I hope its coherent. Feel free to ask me additional questions if you want to.

Bambino

"If you want to succeed in this life, you need to understand that duty comes before rights and that responsibility precedes opportunity."
 

I know this is an old thread - but I wanted to know what the prevailing thoughts on the CCMP analyst program still are. If you push to gain exposure to the technical side on top of the "grunt work" you do, can the program be a good starting place for a long career in PE? Also, how does it compare to a place like Audax, another MM that hires out of undergrad?

 

Of course you should do PE out of undergrad if that's where you want to be long-term. The only exception would be that if you want to go to the top tier firms in terms of prestige, then going the IB route may give you better chances (but they are still extremely slim).

I don't understand everyone's infatuation with the KKR/Bain Capital/Silver Lake. You can make a ton of money at a smaller shop, have more flexibility and freedom in developing an investment story, and typically have a better lifestyle.

 

Regarding the original question, it would only make sense to choose a top IBD group if you're not sure on PE as a longer term career. IBD "opens more doors" and gives you the most opportunity to jump to HFs as well as PE. However, that is not to say top PE analyst programs at places like you mentioned will not give you the same, if not better, opportunities to jump to a HF specifically if that is what you desire

 

More and more growth equity shops are hiring undergrads to fill sourcing/BD analyst roles. I am currently an analyst at one of these shops and I can surely say that I do not do any deal work, which upon finishing the program, will put me at a major disadvantage when it comes to financial modelling. Then again, you also see MBB grads being hired as associates at these shops.

With that said, where I see an advantage is that I will have 2 years of developed soft skills (talking to CEOs, holding insightful conversations on the phone, etc.) and will be way ahead of the pack than the average IB analysts. Let me be clear, this advantage pertains to moving into another sourcing focused growth equity shop (proprietary sourcing has become more and more prevalent as the market becomes more competitive). Also, being at a PE shop, I still have exposure to live deals and am always in an opportunity to learn from my Associates, VPs, Principals and Partners. The exposure to the inner operations of portfolio companies regarding how they are doing well/bad, strategic growth initiatives, etc. I find to be very interesting and very valuable. Lastly, so long as I do my job and with great effort, the people I work for will have my back and will be very helpful on next steps. Note that my ideal plan is to become an associate here, which is certainly a possibility.

Accounting and modeling is teachable, but having those soft skills for this certain aspect of the job isn't necessarily the case. I completely understand those who want to go into IB first for execution experience, because it certainly makes sense. But one would be crazy to say that going straight to PE is always going to be the wrong move.

My two cents

 

Here are some differences that I have found after working at a PE shop and talking with others in the industry...

As an investment banking analyst, you will most likely see and execute more deals than a private equity analyst. Some PE analysts out there spend a good portion of their time sourcing deals (depends on the firm) instead of actually modeling. As a result of this, PE analysts who move up as an associate are slightly less knowledgeable about various transaction nuances. In other words, a PE associate who spent 2 years in a solid M&A group at a bank is better able to understand the various nuances involved in it than a PE associate who started as a PE analyst.

That being said, PE analysts are introduced to thinking strategically much earlier than IB analysts. As a PE analyst, you are thinking about factors that drive value and affect the overall investment's risk profile. IB analysts on the other hand, may be better/faster at modeling but do not put as much strategic thought into why they modeled things the way they did.

 

Sidenote: I hate that the NBA has that one year rule... it's SO ridiculous...

If you're good enough to go to the NBA out of high school, then go. One semester of college isn't going to make a difference.

 

Not sure about junior internship but CCMP hires partially out of undergrad, so I'd assume they also take undergrad interns...

I don't accept sacrifices and I don't make them. ... If ever the pleasure of one has to be bought by the pain of the other, there better be no trade at all. A trade by which one gains and the other loses is a fraud.
 

Just checked the OCR website at my school and Silver Lake (this is a first), Bain Capital, apollo, and cerberus all have postings. Warburg has one as well but the date is 2009...?

That said most of the people who get interviews with typically have some BB IB internship or some internship in an investing capacity (MM PE, Investing groups at Goldman, etc.)

 

I know that Blackstone hires from ugrad from my target (not sure other funds, haven't really checked). But that's the thing - OP do you go to a target? If you don't, getting a PE SA/FT out of undergrad is infinitely more difficult.

 
FernandoTorres9:
Bain cap for summer analysts? Are you sure? They have taken 1 kid/year from my target (except last year) for the last 6-7 years FT, and never recruited summers here. Are you conflating the PE arm with Sankaty (credit HF)?

EDIT: Audax, BX, BlackRock Kelso come to my target. Silver Lake only takes Wharton kids

BlackRock isn't PE

 
FernandoTorres9:
Bain cap for summer analysts? Are you sure? They have taken 1 kid/year from my target (except last year) for the last 6-7 years FT, and never recruited summers here. Are you conflating the PE arm with Sankaty (credit HF)?

EDIT: Audax, BX, BlackRock Kelso come to my target. Silver Lake only takes Wharton kids

No, I'm talking about Bain Cap PE not Sankaty (although Sankaty also hires at my target). I agree with you that it is very sparse but they hired a kid from my undergrad ~3years ago and currently have a listing on my targets' OCR website. Silver Lake does as well, although like I said earlier this is the first year that I've seen that.

 

There are usually more and better opportunities available after 1-2 years in IBD. Don't rush it kids.

I'd rather be the guy who does 2 yrs M&A then goes to KKR/Eton Park/other top preftigious fund than the guy who joines Apax or Sankaty out of school.

 

I'm going to weigh in here because this stuff pisses me off. TLDR: Life isn't fair, but it still works out.

Why shouldn't hiring managers at elite firms screen resumes the way NewGuy suggests? It makes total sense. A megafund PE firm is going to take ~5 kids in its class (and a HF like NewGuy's will probably only take 1 kid), so can you explain why they should look at someone who doesn't have the most prestigious background? They don't have time to interview every single smart kid, and you're delusional if you think the summa cum laude Columbia grad at MS M&A isn't more likely to be more intelligent than the magna cum laude UT grad in JPM TMT.

Yes, there are lots of smart kids who didn't go to an Ivy, or who didn't perform to their full potential in college. Fortunately for them, life exists outside of megafund PE & HF, and you can do very, very well for yourself going from BAML to Madison Dearborn. That is a totally reasonable path for anyone who is hard-working and even close to as intelligent as the kids getting megafund offers.

 

And even then, Apax out of undergrad has a hell of a lot more pedigree than any banking job.

Hs comparisons are also a joke because they ignored the obvious 1) HYPS magna + GS (any competitive group) vs 2) HYPS magna + Apax

In which case, if you had to choose, take #2 any day. In itself it's a stupid comparison though, because both will get a chance to interview for their fair share of elite associate positions and from there none of this matters.

And last, at least in the states Apax doesnt take people out of undergrad anyway, so this is a stupid discussion.

 
frank_reynolds:
And even then, Apax out of undergrad has a hell of a lot more pedigree than any banking job.

Hs comparisons are also a joke because they ignored the obvious 1) HYPS magna + GS (any competitive group) vs 2) HYPS magna + Apax

In which case, if you had to choose, take #2 any day. In itself it's a stupid comparison though, because both will get a chance to interview for their fair share of elite associate positions and from there none of this matters.

And last, at least in the states Apax doesnt take people out of undergrad anyway, so this is a stupid discussion.

This is a stupid discussion because I'm telling you what my preferences would be when screening candidates and you're telling me I'm wrong ... In your case, I would choose #1 not #2.

I know little about Apax and a quick search on Linkedin shows that they clearly do not get the cream of the crop. Hardly any of their post-MBA associates had PE experience pre-MBA. That's enough to tell me that the guys with pre-MBA PE experience don't consider them that prestigious.

Do you work at Apax? You sure are getting ultra defensive here. Sorry I don't find your firm preftigious bro.

 

@ 7S, you're right, Apax is better known in Europe than in the States, so maybe that's why these narrow-minded folks think it's not "prestigious".

All the talk on this website about which school is more prestigious, which I-banking role has more prestige, or which mega-firm is recognized as most prestigious makes me want to vomit. The reality is that prestige is entire subjective, and has little-to-no bearing on the ability of the firm or the individual to make money. It's all just a bunch of childish bantering that people play here and it's sometimes laughable, but more often that not, it's sickening.

 

A small fraction of people go in right out of undergrad, and it's far more common at the smaller shops than the megafunds. PE/HF typically recruit from the sell side because the want people that are already good at what they do and don't want to train people. High end VC is heavily skewed towards certain colleges (Harvard, etc...) and if you don't have any experience, an MBA may be more of a liability than anything else.

Search around the site a bit and get to know some of the guys that went straight to PE. ALSO, and I say this too often but whatever, here goes: networking will overcome ANY AND ALL limitations. Knowing the right people makes the recruiting standards irrelevant.

Get busy living
 

Well, UFO is mostly spot on. Networking won't overcome everything. You have to know the job that is done in PE to get a job in PE straight out of school. A smaller shop can't afford to take on somebody who they have to train extensively and a larger shop will just go grab an IB analyst.

You can break into PE straight out, but you need to 1) know the job, 2) network your ass off, 3) have a strong background in finance (internships, school, etc)

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

I would suspect from recent other posts as well as the current state of the economy that it would be quite difficult to get a PE job unless you are the top of the top. Even then, I wouldn't suspect you(or most/all undergrads including myself) would have much of a chance, especially with so many (recently)out of work bankers looking for a job.

But hell, if you want it enough I'm sure it can be had for a large enough price...

 

I might be wrong but given the current state of the economy it is highly unlikely to get a job at PE fund unless you are an absolutely amazing applicant and having outstanding connections.

 

i had several interviews with PE as a undergrad i got both type interviews, consulting case and banking-style valuation, EBITDA, multiples, blah blah.. i think you should prepare both

 

Sure, I think it's possible. I had a second round with a mm pe firm last fall...granted things have deteriorated significantly since then, so it might be a lot harder now. Just for a little perspective, I went to a non-target and had like a 3.4...although most of that was due to a pretty horrible fall sem fresh year. Either way, unless you have the qualifications warhawk mentioned, you should probably stick to applying to smaller mid size firms.

 

So, you're in a 2-year IB program - that would generally position you for an associate position at a PE firm after you're done. So, I'm not sure why the loss of an analyst at a PE firm particularly concerns you.

That said, analysts in PE support associates. There are a limited number of PE firms that hire undergrads, including some well-known ones such as Blackstone and Silver Lake, among others. So reputation of the firm is not an issue. Maybe you could clarify what you're asking though? Are you asking if you should leave your IB analyst position to take a PE analyst gig? IMHO, no, finish your IB stint and then join PE as an associate - assuming you're at an IB with reasonable-good exit opps.

 

Yeah, the question is whether to leave my current IB analyst program and start at this private equity firm. The title would be analyst at the PE firm, but it would be a position similar to pre-MBA associate. The PE firm said it would be a two-year contract with a track to associate (assuming a mutual interest and need). I'm asking because I'm currently interviewing with other firms, but this is the only PE interest I have received thus far (I am in the final round of a Fund of PE Funds), but didn't know which would be the better career option. Stay in my IB program then move into FoF or switch to PE now? In either case, I'm pretty sure I'm headed to B-school and would like to eventually end up in Corporate Development/Strategy, so I want to set myself up for that.

 
JesseLivermore1907:
Unless they have a DeLorean with a flux capacitor, it's going to be pretty hard to meet that staffing demand.

My thoughts exactly!!

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

Assuming your a second year analyst, I would say finish out your program then make a move. That will leave you much better positioned at wherever you decide to go. In my opinion, it seems like a waste to start an analyst program then leave to be an analyst for another 2-year program. As for what's better from a career standpoint, I don't really have any insight into that. But I would imagine it depends heavily on the differences between the prospective employers.

 
Pat_Bateman:
Does anyone know the reputation of PE firms that hire straight from undergrad? I am currently in a 2-year investment banking program, but a PE firm recently lost an analyst and is hiring off-cycle (need someone by 1/2009). I am trying to debate whether it would be a better situation for me or if those firms work like investment banks, since analysts are straight from undergrad in both scenarios.

The reputations of these firms vary immensely; Blackstone hires out of ugrad for PE, but so do firms with funds

 

Maybe because SLP only recruits undergrads at Wharton? (i.e. no other undergrad targets) Their recruiting process is very inflexible in my experience - no accelerated interviews after SAs, etc.

 

Yeah, from my process with this company, it definitely seems like reputations vary with firms that recruit straight from undergrad. This firm needed an analyst off-cycle because they had one leave for a Hedge Fund. Strange, because I didn't think people would want to jump from PE to HF, at least not until they finish their current program. That was a red flag for me at this firm.

 

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