How to prep PE Recruiting from consulting?

To prepare for PE recruiting from a Tier 2 due diligence (DD) consulting shop, here’s a structured approach based on the most helpful WSO content:

1. Build the Right Background

• Focus on Relevant Work Experience: Advocate for case experience that is modeling or due diligence-heavy. Avoid cases like "change management" or workshop-focused projects, as they won’t help much in PE recruiting.
• Private Equity or M&A Deals: If possible, aim to work on private equity or corporate M&A deals. This will make your profile more attractive to PE funds.

2. Networking

• Chat with Associates: Start building relationships early. Talking to associates at PE funds while you’re still a student can give you insights into the recruiting process and help you understand the culture of different funds.
• Leverage Headhunters: PE recruiters are gatekeepers to the industry. Build strong relationships with them, as they can guide you through the process and connect you with opportunities.

3. Study and Prep

• Technical Skills: Learn basic financial technicals like the 3 statements, valuation, and LBO modeling. Start with paper LBO models, then progress to 1-hour LBO models. As a consultant, you can get away with mastering up to the 1-hour model.
• Case Studies: This is where you’ll be tested on your ability to think like an investor. Use resources like Case-in-Point to understand frameworks for tackling cases. Create a framework for answering questions like, “What would you need to know to make X a good investment?” Focus on cash flow, industry, and deal economics (e.g., purchase prices).
• Study Guides: Invest in WSO’s PE study guide, which is highly recommended. The Vault guide is also an option, though it may have some errors.

4. Recruiting Process

• Headhunter Meetings: Take headhunter intro meetings seriously. They play a critical role in connecting you with funds and can act as a gating mechanism before first-round interviews.
• Interview Prep: PE interviews are not as formulaic as IB interviews. While technical skills are important, showing personality and taking risks in your answers can help you stand out. Be prepared for random business-related questions, such as “Would you rather invest in copper or a copper mine?”

5. Additional Tips

• Networking Materials: If your group doesn’t have internal prep materials, connect with friends in other groups to gather practice models, case studies, and interview guides.
• Books: Read books like Kings of Capital or Barbarians at the Gate to understand the industry better. If these don’t excite you, PE might not be the right fit.

By following these steps, you’ll be well-prepared to transition from consulting to MM or UMM PE.

Sources: PE Recruiting Guide, Haven't started at McKinsey but was approached..., PE Recruiting Guide