Going back to PE - what to do proactively to increase chances?
I'm at a low point in my career and could really use some practical advice.
I was an associate at a UMM fund, but left a few years ago to take a bet on myself in business. My business failed, so I'm now trying to get back to PE.
My background is no longer typical, plus the few years away from PE put me in a strange place between experienced associate and VP. Headhunters aren't rushing to work with me, so I need to find these opportunities myself.
I'm at a complete loss at what I can do proactively and regularly. I have more than enough time on my hands, but after an initial push with my network, everything I've thought up feels either unproductive or so far-fetched that it's borderline pointless.
- Headhunter outreach - Done, mixed results
- Close network - Done, no results
- Properly tailored cold outreach - No results yet, very time-consuming. The chances of reaching the proper person when they need to hire feel extremely low. Also established funds likely have enough HH-sourced candidates to respond to cold outreach.
- Generic high-volume cold outreach - Likely hurts more than helps, plus everything above.
- Cold email with investment case - Feels incredibly low-ROI for the time commitment. Not even sure who would open a PDF attachment in a cold email. Plus no case will be one-size-fits-all and could be taken as misunderstanding a fund's mandate
- Intro from old senior contact - Last resort, certainly for a confirmed opening and not for cold interest.
- Prep for modeling tests and cases - too early, good problem to have if I get here
Since my business failed, I'm effectively unemployed. I'm not about to go bankrupt and can take some time to find the right spot. But I don't want to wait around for 6-9 months if I'm not doing something consistently to find it.
I realize people in my position don't have much choice, but I'm not interested in alternative paths like corp dev, strategic finance, or startups and don't see a point in an MBA in today's market. I really did enjoy PE and still value the benefits an investing career provides. In my view it's still a numbers game, I'm just not sure how to increase the numbers.
To increase your chances of getting back into private equity (PE), here’s a structured approach based on the most helpful WSO content:
1. Double Down on Networking
2. Tailored Cold Outreach
3. Build a Repeatable Process
4. Develop Industry Expertise
5. Prepare for Interviews
6. Consider Smaller or Emerging Funds
7. Leverage Headhunters Strategically
8. Stay Persistent and Positive
By combining these strategies and maintaining a consistent, proactive approach, you can increase your chances of re-entering the PE industry. It’s a tough road, but with focus and determination, you can make it happen.
Sources: Q&A: VP in Private Equity (Growth Equity + LBO)...Post-MBA...Formerly IB Analyst, Q&A - Starting Post-MBA Megafund PE, Q&A: From Corporate Finance to Corporate Strategy (Supply), Getting back into PE after a risky startup HF, Ask CompBanker
It's the networking ones. You should be circling back with your close network for check ins every couple of months (including the more senior people in your network) so that you stay top of mind if opportunities DO come across their radar. You should also be doing cold outreach, properly tailored (the emails don't need to be THAT different from one person to the next, but they should do their best to incorporate some sort of connective tissue between you and that person). If you are not getting at least a 10% response rate to connect from those emails, something is wrong with the emails (you could get as high as 40%). The emails should be framed as wanting to learn more about what they're spending time on, and wanting to pick their brain on how to position yourself for reentering the space. Once you have those conversations, you should be touching base with those people every 4 - 6 months or so to check in (depending on how the conversation went). Grind grind grind, it's going to take a long time.
Thanks for this! Take it from your post history you've been a principal for a few years. Is this how you'd want to be approached?
I'm pushing 30 with 8 total YoE. Not that this makes me experienced, but are curiosity and advice the right ways to approach people? I have deal experience, team leadership, and actual business outcomes that could set me apart from someone with just banking and a few years of PE. Would it be smarter to speak to what I can bring to the team instead?
Of course I've heard the saying "ask for a job, get advice. Ask for advice, get a job". Maybe this is the case here too.
I left PE to do a startup that failed and then went back to banking (need to update my profile) but I was a Principal for several years. Everyone knows that the email is really because you want a job, so there is no reason to say it directly. As stupid as it is, it's essentially a societal etiquette thing - if you are too direct with someone you don't know, it shows you don't "get it". You can include quick background on where you previously were, what you've been doing, and what you're hoping to do now (that should be like 2-3 sentences total), include a resume for "more color" and say you're looking for advice on how to position yourself. Some people will respond because they're genuinely happy to give some advice. Others will respond because they have a current or potential future need and want to start assessing you. If you just email someone you've never met saying you want a job, and look at all the great things you've done, they're probably not going to respond.
OP is there any option to go back to your UMM fund?
I would imagine you would have the strongest network there and perhaps could get back in a desirable level.
Additionally, if all else fails, you may have to settle for a less mature LMM fund given they would highly value your UMM experience + operating cuts. It would be a reduction in cash comp, but if you like investing enough, it should even out over time.
Already working on both. Our hiring was always very structured and dictated from the top, so even good relationships would only go so far. But I'd definitely call in a favor from a senior if they had a need.
I really like the idea of a new fund given the return compression and upward mobility challenges at larger funds. Spoke with a few colleagues who moved to these funds - getting in is a timing game since they run lean and usually hire through word-of-mouth.
OP, did you finish your associate program? What types of roles are you looking at - associate, SA, VP, etc.?
Nope. So I've had to be flexible, although SA seems like the sweet spot.
Honestly the Associate positioning and monthslong timeline for PE are giving me the most heartache. I've been approached for Director and VP-level roles at startups, and could probably swing a top startup if I put my mind to it. My business experience just left a really sour taste in my mouth about startups as a whole, and I always felt out of place in venture-backed tech - very different personalities, interests, and motivations from what I prefer.
Got it. So how much of your associate program did you complete? Are you the same poster from a few weeks back who had a few gigs in between (including a failed start-up)?
How much would finishing the associate program help? Would someone with 4 years of PE, full associate program + senior associate promote be in a better spot?
Yes, I think materially better. I think firms will struggle with the job dedication of someone who left a program early and has had a few short stints, which suggests lack of conviction (not saying OP, though not finishing associate will make returning a very uphill battle IMO).
Conversely, someone, who’s been through a promotion cycle and completed a program is a very positive sign, though I’m not downplaying the challenges of the job market.
Honestly, an MBA is your easiest path forward.
I ended up in a somewhat similar situation to you. I was initially at an LMM shop vs UMM, and I only stepped away for ~a year, but it still took 6+ months before I started getting real traction. But once things picked up they moved pretty quickly (seemingly always the case!).
I did a TON amount of cold outreach, but ultimately had the most success working through headhunters and recruiters. I know you mentioned that route hasn’t been very fruitful so far, but one potential path could be targeting an LMM/MM platform first and then lateraling back to a UMM+ fund once you’re back in the swing of things.
I’d also strongly emphasize the importance of staying in touch with your network, as an earlier poster mentioned. You never want to be the person who only reaches out when you need something, so maintaining a consistent line of communication is paramount. Even something simple like, “Hey, I thought of you/your firm when I came across this article - how are things going on your end?” can go a long way. Trust me.
Happy to chat further if helpful and wishing you the best of luck with the search! Hang in there.
Appreciate that, and glad it worked out for you! So did a HH inbound ultimately get you the offer?
Def agree that an actionable opening is worth 50 cold emails. My early strategy was to do anything I could to land on every HH's distribution list - old contacts, alums, mutuals, etc. Somehow I got 3 new names to engage with me and appear to sympathize with my story.
100% agree on the networking, and that's unfortunately my Achilles' heel. Combo of being a bit introverted and "out-of-sight, out-of-mind" about things. I'm working on it but won't be quick enough to matter this time.
Appreciate it! So I ultimately landed my role through a one-off reference in my network; however, at the time I had great traction with HHs and had to pull out of several later-stage processes once I accepted the offer.
Quick sidebar - in addition to leaning on your network, I’d also recommend circling back with the HHs you’ve already connected with every month or two just to check in and see if any interesting opportunities are coming down the pipeline.
On the networking point, totally understand that not everyone naturally derives energy from building and maintaining new relationships, especially if you’re more introverted. But in situations like this, it’s something you unfortunately just have to push yourself to do. This is one of the scenarios where you don’t want to be invisible as you want to stay top of mind for all potential opportunities. Silver lining is that most of these touchpoints are relatively low lift (i.e., an occasional email check-in) as opposed to grabbing a drink, bite to eat, etc.
I know you said you’re not interested in other things, but you might have a very good shot at VC since the operational experience is highly desired. Like to the point that if you grab a couple of coffees to VCs who turn up to pitch nights, you can probably get into a process sooner rather than later.
Haha crazy our stories and points in life sound eerily similar. I too left PE and am currently working at a startup company (close to failure). Thinking about next steps as well. Happy to connect and chat!
Wow, first of all congrats for taking a bet on yourself, takes balls. What's going on with your business - do you think it'll make it through? And how are you thinking about your next steps if it does go under?
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