How to Break into PE?

Hey Everyone,

This post is not if it's possible but I need help on how you would go about breaking into PE, growth equity or traditional shops. 

Here is some color:

I worked shortly in Tech M&A Investment banking for a boutique shop (not an internship, more as an off cycle analyst trying to prove himself) was offered a full time role but it was to far out, took an investment associate role for a start up AM shop before covid, the position was ultimately cut and I was let go. 

Unfornately was in the middle of a pile up car accident that put me out of work for over a year while I had to recover.  I did work in consulting earlier as an intern and after the accident for my former boss which helped.  I am very good in LBO modeling and had great grades from a top tier non target school.

What I am doing Currently:

Networking, networking, networking with anyone I can, most who have been receptive just up until recently because of the job market haven't been much help.  Im upper twenties so I think I would find it just as difficult trying to get back into IB then going into PE, as well as I have skillsets more valuable in PE.  Besides this, just practicing modeling a ton and reading industry insights.  I did have one growth equity shop i went far with, they ultimately didnt end up hiring anyone and I did well on the technicals.

I know my situation is unconventional, and I really would not like this car accident to basically just be the nail in the coffin to getting into a PE role regardless if I have to come in as an unpaid intern, therefore I ask this forum what else can I do to make sure I at least get a shot.  

 

Based on the highest ranked content on WSO, here's a strategic approach to breaking into private equity (PE), especially given your unconventional background:

  1. Leverage Your Experience: Highlight your tech M&A and investment associate roles. Emphasize any deal experience, LBO modeling skills, and your ability to recover and work post-accident.

  2. Networking: Continue your networking efforts. Focus on connecting with PE professionals, especially those working in growth equity or traditional shops. Use platforms like LinkedIn and attend industry events to expand your network.

  3. Target Smaller Shops: Given your non-traditional background, small to mid-market PE firms may be more receptive to your profile. They often have more flexible hiring criteria and may value your diverse experience.

  4. Showcase Your Skills: Since you're proficient in LBO modeling, consider creating a sample deal model to demonstrate your capabilities. Offer this as a work sample when reaching out to firms.

  5. Consider a Lateral Move: If direct entry to PE is challenging, consider a lateral move back into investment banking or a related field that could lead to PE opportunities in the future.

  6. Educate Yourself: Stay updated with industry insights and trends. WSO offers various resources, including guides on PE recruiting and interviews.

  7. Prepare for Interviews: Be ready to discuss your past roles, the impact of your accident, and how you've overcome challenges. Practice technicals and prepare to articulate your value-add to a PE firm.

  8. Consider an MBA: If breaking into PE remains challenging, an MBA from a top program could provide a more traditional path into the industry.

  9. Persistence and Patience: The PE recruiting process can be lengthy and competitive. Stay persistent, keep improving your skills, and be patient as you work towards your goal.

Remember, your unique experiences, including overcoming a serious accident, can be framed as a testament to your resilience and determination—qualities that are highly valued in the PE industry. Keep pushing forward, and don't hesitate to reach out to the WSO community for further advice and support.

Sources: How Do I Get Into Private Equity?, https://www.wallstreetoasis.com/forum/investment-banking/breaking-into-private-equity-from-banking?customgpt=1, Breaking into Private Equity from Banking, How to break into Real Estate Private Equity (w/ 0 RE Knowledge), Breaking into Private Equity from the LP Side

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

Sorry about your accident and hope you're doing better now.

Very unlikely you will be able to go right into PE, especially in this market when almost everyone in IB is looking to get out. Self-studying modeling and PE is just not the same as actually having deal reps, especially since it seems like you have limited full-time work experience and your only IB experience was essentially an extended internship (correct me if I'm wrong on either of these).

I would try to find your way into IB, if your old shop will take you great, but otherwise find another boutique and get 2 years of solid work experience and then recruit into LMM PE.

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