8 years in PE | Ex-McKinsey & now in quant. AMA, I can answer on my free time

Based on the most helpful WSO content, your background and experience across consulting, private equity, and quant finance make for a unique and valuable perspective. Here are some key takeaways and advice that align with your expertise:

1. Private Equity Recruiting Insights:

   • Storytelling is Key: Candidates need a clear and authentic narrative for "Why PE?" and "Why this specific fund?" This is critical in interviews, especially during the first rounds.
   • Technical Preparation: Mastery of LBO modeling (paper LBOs, 1-hour, and 3-hour tests) is essential. For middle-market or lower-middle-market funds, a strong grasp of paper LBOs might suffice, but for mega-funds, speed and accuracy in building complex models are crucial.
   • Investor Mindset: Demonstrating the ability to think like an investor is vital. For example, when asked about investment attractiveness, avoid surface-level answers like growth rate or EBITDA margins. Instead, focus on what drives value in an LBO, such as revenue growth, margin expansion, and leverage.

2. Transitioning Across Industries:

   • Consulting to PE: Your strategy and operations background from McKinsey would have been a differentiator. Consulting candidates often need to emphasize their ability to identify and quantify value drivers in transactions.
   • PE to Quant: Moving into quant finance likely required showcasing your analytical rigor and adaptability. Highlighting transferable skills, such as data-driven decision-making and financial modeling, would have been key.

3. Advice for Candidates:

   • Tailored Approach: Encourage candidates to target funds that align with their expertise or industry focus. This can significantly improve their chances of standing out.
   • Networking and Headhunters: Building relationships with the right headhunters and maintaining a polished CV with clear deal experience is crucial. Headhunters often act as gatekeepers in the PE recruiting process.
   • Preparation Beyond Technicals: Soft skills, cultural fit, and understanding the firm's investment philosophy are just as important as technical prowess.

4. Long-Term Career Planning:

   • Keeping Options Open: For those considering transitions, it's essential to build a versatile skill set and maintain a network across industries. This ensures flexibility for future moves, whether within PE, consulting, or other fields like quant finance.

If you're offering structured guidance to candidates, your experience on both sides of the hiring process will undoubtedly provide them with a competitive edge. Your ability to combine technical prep with strategic career advice is a rare and valuable asset.

Sources: Private Equity Recruiting Process (From Banking), Private Equity Recruiting Walkthrough – My Experience, My Private Equity Recruiting Process, My Private Equity Recruiting Process, Private Equity Recruiting Guide