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Wall Street Oasis » Forums » Private Iniquity
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Private Equity Recruiting Q&A
 

Marcus_Halberstram's picture
Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/16/12 at 11:16pm
q&a.jpg

Have been getting more than a few inbound PE recruiting questions VIA PM, happy to field them here for everyone's benefit. The recruiting process has really shaken up this year and is a pretty significant source of anxiety given how opaque and unexpected it is.... So figured this may be a better forum than PM so everyone can benefit from it.

For those of you hyper-competitive monkeys out there's that have firm-specific question and don't want to divulge info, you can still PM me and I'll try my best to answer it when I can.

Let's try to limit questions to those pertaining to the new recruiting process... I.e. MM recruiting now, megafunds doing "fireside chats" in an attempt to keep the best candidates on ice until they kick off their recruiting much later.... most of the other questions can be answered somewhere else on this forum or the internet..

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Tags:
  • technical questions
  • Recruiting Q&A
  • private equity
  • Megafunds
  • Private Iniquity
couchy's picture

Were the technical questions

couchy
     
 
(King Kong, 1,364
 
Points)
 on 3/17/12 at 1:53am

Were the technical questions much more difficult than BB / Elite Boutique technical questions?

How did you prep for the case-study?

How quickly can you model a returns analysis with 3-statements etc.?

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Marcus_Halberstram's picture

Technicals for banking are to

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/17/12 at 2:12am

Technicals for banking are to ensure you're well prepared. Technicals for PE are to ensure you've mastered financial analysis for a banking analys / new PE associate.

Didn't prepare for case study, did it everyday at work anyway, so was second nature. Also spent some time at a boutique where I was modeling from a blank spread sheet on every deal, so that experience helped.

Depends know complex the company is. But with very simplified, probably 20 minutes. Of the cases I've done, I spent a weekend on one, 4 hours on another, and most of the others were on site, typically 3 hours. Had one that was 30 minutes on site, blank excel and a 10K.

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Hooked on LEAPS's picture

I know HF's have strict

Hooked on LEAPS
      ER
 
(Senior Gorilla, 765
 
Points)
 on 3/17/12 at 3:38am

I know HF's have strict marketing laws and cold calling clients is forbidden. Is it legal to cold call clients at a PE firm? Also, how do the costs of starting a PE firm differ from the costs of starting a HF and what kind of seed capital do I need to realistically start a PE firm?

Thanks

You have your way. I have my way. As for the right way, the correct way, and the only way, it does not exist. - Friedrich Nietzsche

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blastoise's picture

what do you mean it have

blastoise
      O
 
(Senior Neanderthal, 4,380
 
Points)
 on 3/17/12 at 7:11am

what do you mean it have shaken up this year

can you explain how it differed from previous years for naive on this website

ty

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NewGuy's picture

You mad that you're gonna

NewGuy
      HF
 
(Senior Orangutan, 479
 
Points)
 on 3/17/12 at 8:30am

You mad that you're gonna find it difficult to find a PE gig given you're a 2nd/3rd year Associate?

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blahnik's picture

Marcus, because I've seen a

blahnik
      IB
 
(Senior Chimp, 16
 
Points)
 on 3/17/12 at 11:20am

Marcus, because I've seen a lot of your posts, I assume you're not a second year analyst. How was the process different for you given that you've got a bit more experience?

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monkeymonkeybusiness's picture

how do you recommend

monkeymonkeybusiness
     
 
(Baboon, 129
 
Points)
 on 3/17/12 at 12:45pm

how do you recommend consultants with less deal experience present themselves?

What are the major components of LBO one should know?

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illiniPride's picture

Marcus: Thanks for the Q&A.

illiniPride
      IB
 
 
(King Kong, 1,099
 
Points)
 on 3/17/12 at 2:44pm

Marcus:

Thanks for the Q&A. Can you give a concise time-line of the PE recruiting process for MM and Megafunds? I know this info is floating around piecemeal in various threads but it might be helpful to have it consolidated here.

For the record, I am an incoming FT analyst at a strong MM boutique whose going to be hustling for offers. Just need to know how long to wait before marketing myself.

Thanks

Leadership can be defined in two words: "Follow Me"

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Marcus_Halberstram's picture

blastoise wrote: what do you

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/17/12 at 2:55pm
blastoise:

what do you mean it have shaken up this year

can you explain how it differed from previous years for naive on this website

ty

In previous years the megafunds kicked off the process, usually earlier and earlier every year. Typically they would recruit in the spring of the previous year for a start date the following year at the end of the summer. So you'd get an offer in spring 2009 for a august 2010 start date. Once the megafunds were done (with some overlap) the top MM funds would do their thing. Then everyone else.

Last year was a bit of a clusterfuck and from what I've been told many of the megafunds were pretty pissed off about having to give offers to pimply faced 20 year olds that had absolutely no experience to talk to. As a result, a lot of the megafunds have agreed to wait until early to mid-2013 this year to give offers for 2013 start dates (makes sense).

So all the middle market guys are having a field day. From where they stand, they have the first pick of the crop, something they've never gotten to do before since they weren't able to compete for talent with the big boys. The megafunds, being smart guys, realize that they may lose quality candidates who decide to accept an offer in-hand rather than wait until a possibility of having a megafund offer come the following year. So what they've been doing is having cocktail events, dinners, lunches etc... with some of the "desirable" candidates where basically they tell each of them "I think you're the one. Don't be impatient, wait till next year when we're hiring rather than accept an offer with X MM PE firm now, you won't regret it, I want you at Bain/KKR/Apollo etc". One in the hand is clearly better than 2 in the bush, but never underestimate the power of flattery, salemanship and pure unadulterated bullshit. Let's be frank, they will tell 60-120 kids this same "I loved you the moment I saw you, I will fight to get u at offer at my megafund" story, and of them only 5 will get actual offers, so they are knowingly lying to 55-115 kids. Most likely you're one of those poor bastards that are passing up a primo PE offer for a maybe in the future. They'll also pitch you the optionality of "if it doesn't work out with the megafunds" then you can always do MM rt after. Also bullshit. The fact that the megafunds had the pick of the litter early on and now modified their recruiting strategy to a seemingly disadvantaged position suggests that the early bird was not getting any worms worth having. They've likely noticed a significaant detioration in the quaility of candidates they've been hiring and have made a risky decision to change the way they hire associates. The MM funds have never had this luxury before, but considering the megafunds did and have chosen to forgo it suggests that its not an advantage after all. I suspect the MM firms will NOT recruit next spring and they will follow suit of the megafunds and recruit the following year.

The new status quo in associate recruiting will be for the megafunds to recruit in Jan/Feb 2014 for Aug 2014 start dates and the MM will recruit Mar/Apr 2014 for Aug 2014 start date. Everything will normalize and we'll return to the pecking order.

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Marcus_Halberstram's picture

blahnik wrote: Marcus,

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/17/12 at 3:03pm
blahnik:

Marcus, because I've seen a lot of your posts, I assume you're not a second year analyst. How was the process different for you given that you've got a bit more experience?

I'm a bit atypical. I moved to PE as a 3rd year at a MM shop and almost simultaneously got an offer at a large non-megafund (think THL, Silver Lake, Leonard Green). That was off cycle and largely dumb luck as they felt they underhired for the following year and picked up one more seat. So I will have been at in my MM PE role for about a year and will start at my new gig come the summer time. So kind of intentionally holding myself back a grade (will be a first year PE associate twice).

As a more experienced candidate you really have to rely on your MD's to get your name out there. As a 3rd year, I was getting very few interviews on my own, despite a solid background.

So the key is your MDs' recommendation and networking. Obviously you have to be very competitive otherwise as well, but that goes without saying.

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Kanon's picture

^ Marcus, maybe I'm getting

Kanon
      O
 
(King Kong, 1,504
 
Points)
 on 3/17/12 at 3:37pm

^ Marcus, maybe I'm getting your profile mixed up with another WSOer but I thought you were maybe associate-1 at a BB (having moved from a good MM analyst background).

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Marcus_Halberstram's picture

Kanon wrote: ^ Marcus, maybe

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/17/12 at 4:05pm
Kanon:

^ Marcus, maybe I'm getting your profile mixed up with another WSOer but I thought you were maybe associate-1 at a BB (having moved from a good MM analyst background).

That's roughly in the ballpark of my profile as of last summer.

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illiniPride's picture

Marcus_Halberstram

illiniPride
      IB
 
 
(King Kong, 1,099
 
Points)
 on 3/17/12 at 4:10pm
Marcus_Halberstram:
blastoise:

what do you mean it have shaken up this year

can you explain how it differed from previous years for naive on this website

ty

The new status quo in associate recruiting will be for the megafunds to recruit in Jan/Feb 2014 for Aug 2014 start dates and the MM will recruit Mar/Apr 2014 for Aug 2014 start date. Everything will normalize and we'll return to the pecking order.

Thanks

Leadership can be defined in two words: "Follow Me"

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Kanon's picture

Marcus_Halberstram

Kanon
      O
 
(King Kong, 1,504
 
Points)
 on 3/17/12 at 4:16pm
Marcus_Halberstram:
Kanon:

^ Marcus, maybe I'm getting your profile mixed up with another WSOer but I thought you were maybe associate-1 at a BB (having moved from a good MM analyst background).

That's roughly in the ballpark of my profile as of last summer.

Ah, alright. Well congrats on the move to PE then... and the next move to the large non-MF coming up. Given your profile, you're older than the typical analyst-1/2 that typically join as 1st year PE associates. Your experience would very likely allow you to be better prepared compared to younger analysts, but did a lot of the PE firms have an issue with your age? Maybe presuming that you're too senior for the role and assuming that you would be unwilling to be the bottom of the totem pole again? If so, how did you convince them otherwise, and that you'd be comfortable working around younger associates?

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NewGuy's picture

Kanon wrote: ^ Marcus, maybe

NewGuy
      HF
 
(Senior Orangutan, 479
 
Points)
 on 3/17/12 at 4:22pm
Kanon:

^ Marcus, maybe I'm getting your profile mixed up with another WSOer but I thought you were maybe associate-1 at a BB (having moved from a good MM analyst background).

That was his story in the past, hence my post above. Dunno where this new tale comes from.

@ OP, why you fraudin' brah?

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Kanon's picture

NewGuy wrote: Kanon wrote: ^

Kanon
      O
 
(King Kong, 1,504
 
Points)
 on 3/17/12 at 4:34pm
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Marcus_Halberstram's picture

NewGuy wrote: Kanon wrote: ^

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/17/12 at 8:24pm

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rossi99's picture

Marcus, Thanks for the thread

rossi99
      O
 
(Chimp, 10
 
Points)
 on 3/17/12 at 10:32pm
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Marcus_Halberstram's picture

Because the mega funds

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/18/12 at 12:55pm

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Marcus_Halberstram's picture

And rossi, there will

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/18/12 at 12:56pm

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redrock's picture

Thanks for the thread. What

redrock
      O
 
(Monkey, 49
 
Points)
 on 3/18/12 at 1:16pm
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Marcus_Halberstram's picture

I don't have much knowledge

Marcus_Halberstram
      PE
 
 
(Neanderthal, 3,435
 
Points)
 on 3/18/12 at 3:10pm

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goldman in da house's picture

If you had to do it all over

goldman in da house
     
 
(Senior Orangutan, 489
 
Points)
 on 3/18/12 at 5:39pm
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WonBuyLand's picture

I've been working for a real

WonBuyLand
      PE
 
(Monkey, 34
 
Points)
 on 4/8/12 at 11:17pm
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NewGuy's picture

Looks like this thread was a

NewGuy
      HF
 
(Senior Orangutan, 479
 
Points)
 on 4/9/12 at 5:42am
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Stringer Bell's picture

Not to hijack the thread,

Stringer Bell
      PE
 
 
(King Kong, 1,679
 
Points)
 on 4/10/12 at 10:39pm
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WonBuyLand's picture

Thanks for the great advice.

WonBuyLand
      PE
 
(Monkey, 34
 
Points)
 on 4/11/12 at 10:41pm
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SirTradesaLot's picture

blastoise: what do you mean

SirTradesaLot
      O
 
 
(Senior Neanderthal, 4,501
 
Points)
 on 8/1/12 at 1:59am

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

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blastoise's picture

SirPoopsaLot: blastoise: wh

blastoise
      O
 
(Senior Neanderthal, 4,380
 
Points)
 on 8/1/12 at 12:11pm
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nickd722's picture

Hey Stringer, if interested

nickd722
     
 
(Chimp, 2
 
Points)
 on 8/2/12 at 2:44pm
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You agree to defend, indemnify, and hold harmless the Company, its officers, directors, employees and agents, from and against any claims, actions or demands, including without limitation reasonable legal and accounting fees, alleging or resulting from your use of the Material or your breach of the terms of these Terms and Conditions. The Company shall provide notice to you promptly of any such claim, suit, or proceeding and shall assist you, at your expense, in defending any such claim, suit or proceeding.

General.

The Company makes no claims that the Materials may be lawfully viewed or downloaded outside of the United States. Access to the Materials may not be legal by certain persons or in certain countries. If you access the Web Site from outside of the United States, you do so at your own risk and are responsible for compliance with the laws of your jurisdiction. These Terms and conditions are governed by the internal substantive laws of the State of New York, without respect to its conflict of laws principles. Jurisdiction for any claims arising under this agreement shall lie exclusively with the state or federal courts within New York, New York. If any provision of these Terms and Conditions are found to be invalid by any court having competent jurisdiction, the invalidity of such provision shall not affect the validity of the remaining provisions of these Terms and Conditions, which shall remain in full force and effect. No waiver of any term of these Terms and Conditions shall be deemed a further or continuing waiver of such term or any other term. Except as expressly provided in additional terms of use for areas of the Web Site a particular "Legal Notice," or Software License or Material on particular Web pages, these Terms and Conditions constitute the entire agreement between you and the Company with respect to the use of Web Site. No changes to these Terms and Conditions shall be made except by a revised posting on this page.

PRIVACY POLICY

The Company recognizes that you are concerned about privacy. We are committed to preserving your privacy and safeguarding your sensitive information. The following statement describes the general information-gathering and usage practices of our sites.

Our staff, contractors, Internet service providers and others involved in this site follow this policy or similarly strict policies regarding your Information.

Disclosure

The Company is committed to fully disclosing our policies regarding the collection, use, maintenance, disclosure and security of personal information obtained from users of our site. The term "personal information" includes a name, address, email address, or any other information which could be used to contact you directly or to identify you personally.

Use and Disclosure Limitations

The Company only uses personal information about its Web site users for specific purposes. We do not share user information with third parties except when we have told users about the disclosures, when we have prior consent, or when required by law.

Use Policy: When the Company gathers personal information from users, we ask for permission first. We also disclose, at the time of collection, how the information will be used by us. Personal information is used for activities such as auto-completion of commonly-used forms and helping us contact you when you solicit information from us.

Disclosure Policy: We do not normally disclose personal information to anyone outside of the Company unless we have previously informed users about the disclosures. However, some data may be used from time to time by outside contractors, including auditors or consultants, to assist us in carrying out necessary financial or operational activities. These uses will be consistent with this privacy policy and all contractors using this potential personal information must agree to safeguard it, to use it only for the authorized purpose, and to return it or destroy it upon completion of the activity.

The Company might be required to disclose personal information in response to a valid legal process such as a subpoena, search warrant or court order.

Although unlikely, it is possible that we may have to make certain disclosures to ensure the security of our Web site, to protect its integrity, or to take precautions against potential liability. In any of these situations, we will take any reasonable steps to limit the scope of the data disclosed.

Web Logs: The Company maintains standard Web logs that record basic information about visitors to our Web site. These logs contain: * The Internet domain from which you came to our Web site. * Your IP address. An IP address is a series of numbers which uniquely identifies your connection to the Internet. Although it is possible in some instances, certain types of IP addresses may be used by interested persons to identify users but we do not attempt to identify users in this way. * The type of browser (e.g., Internet Explorer or Netscape) and operating system (e.g., Windows 98) you use. * The date and time you visited the site, and the pages you saw.

We use Web log information to design our Web site, identify popular features, and in similar ways. We do not try to identify individuals from Web logs or to link Web logs to other user information. However, if someone tries to damage our Web site or use it in an unauthorized or illegal way, we may share Web log information with law enforcement agencies. The Company may provide aggregate information such as the number of users who visit particular pages of the site, or the number of people who link to certain external sites from our site, to other parties.

Changes to Privacy Policy

The Company's features and services will change over time and our information-gathering practices and policies may also change.

While our philosophy of protecting user information from inappropriate uses and disclosures will not change, this policy will be updated occasionally to include any change that materially affects the collection, maintenance, use, or disclosure of personal information.

Forum Topics

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  • Hey Everyone, This is my first post but I've followed the forums for a long time. WSO has helped me a lot over the last few years so I wanted to get everyone's thoughts on the dilemma I'm in. So a little background on me: I'm a rising senior at a target (HYP) but...
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    HBS Students' Attractiveness: Discrimination?
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    "Unschool Yourself"
  • I just got an intern, and one of my responsibilities is data entry into excel. What kind of excel functions should I know? I know I should know pivot table, and v-look up, but what else would you guys suggest....
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  • I'm interviewing with Jefferies operations team. saw someone else posted about this, but was wondering what technical questions they might ask. I'm at a loss as to waht to study but if u have any ideas that would be a great...
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  • Just out of curiosity, what would be an average daily P/L within a specific group at a trading house ? 50k? 500k? I am sure it depends of the products being traded, but it would be nice to have an indication of what would a great trading team can...
    P/L
  • What is it, exactly, that makes NY and more specifically Manhattan, vote Democratic? A large net worth individual obviously doesn't equal a conservative, but more often than not it does. And with so many rich people...Is it the large art/liberal/minority community in Brooklyn/Bronx/Queens that...
    Why is NYC so blue?
  • My friend in the industry is asking me to get a new watch and a new wallet to suit the financial industry image. He says please get a branded wallet and watch. Currently I am using a casio g-shock and a wallet that costs less than $100 given by friends on my birthday. He says image is very...
    What wallet and watch are you using?
  • Asatar posted this up in The Other Road forum, thought some of you might be...
    Big 4 Audit - London
  • http://money.cnn.com/2013/05/19/technology/yahoo-tumblr/index.html?hpt=hp_t2 Any thoughts on this? $1.1bn seems like a lot, but maybe I just don't understand the...
    Yahoo buys Tumblr
  • I work as a long/short equity analyst at a large hedge fund. I've been lucky enough to be more than just a model monkey early on in my career, but have also been exposed to the stress of being measured on returns. I primarily cover consumer and TMT names. I went the typical path (target school...
    I'm a Hedge Fund Analyst - Ask Me Anything
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Upcoming Events

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    May 21 2013 - 6:00pm - 9:00pm
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    May 22 2013 - 6:00pm - 8:00pm
  • Financial and Valuation Modeling Boot Camp (Dallas)
    May 23 2013 - 8:00am - May 25 2013 - 5:00pm
  • Shanghai Happy Hour May 24th Friday 7:30PM - 10:30PM
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I used to work with a guy that had everything on the surface, but absolutely nothing inside. The guy was 6 feet tall, good-looking, charismatic, multi-lingual, graduated from a top business school, and had made MD at a bulge bracket investment bank. Yet he couldn’t remember the last time he...
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Assuming that you have access to no financial products such as FactSet, Bloomberg, CapitalIQ, Thomson or otherwise, thought it would be helpful to give a step by step guide on how to ramp up on a new company from your home computer. Using FaceBook as an example. Lets go ahead and start with the...
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