London PE recruiting process
Know that the PE process is well outlined for the US but curious what applies to the London PE scene.
What I understand so far for London recruiting:
- Recruiting less structured - key kick off dates are September and January
- European languages important
- Process is (i) interview / chat with HH, (ii) modeling test, (iii) interview with mid-level in team, (iv) interview with senior members of the team
What I'd like to understand:
- How important is it to maintain outreach with HHs and how should you do this? Will they reach out to you or, if not on their radar, should you reach out to them? Should you maintain [quarterly] touch points etc?
- Any variance is process or insights into modelling element? Do all of these tend to be accompanied by a set of slides, or is the modelling test standalone?
- How important are European languages? interested if this would still be an issue in generalist pan-Euro PE
- Are there any firms that exclusively hire from top 3 BB?
Interested to hear any insights (either in response to the above or otherwise) from anyone who has gone through the process recently. Would also welcome any insight from those that recruited into any ME SWFs.
N.B., primarily focussed on generalist buyout but can include sections on growth, real estate, co-invest etc.
I'll aggregate responses so post can be useful for those interested going forward.
Based on the most helpful WSO content, here's what you need to know about the London PE recruiting process:
Maintaining Outreach with Headhunters (HHs):
Modeling Test Variance:
Importance of European Languages:
Firms Exclusively Hiring from Top 3 BBs:
Additional Insights:
For more detailed insights, you can explore the WSO threads on PE recruiting in London, such as the one at url: https://www.wallstreetoasis.com/forum/investment-banking/20-most-freque….
Sources: Basic Questions About PE Recruiting Answered, 20 Most Frequently Asked Questions - London Edition, Private Equity Recruiting Process (From Banking), Private Equity Recruiting Process (From Banking), 20 Most Frequently Asked Questions - London Edition
edited to re-number
Maybe others can chip in here but as a starter:
anyone want to trade case studies or models?
Adding details from my experience so far:
2. Modelling test consisted of two stages, one interview on paper LBO and another solely on a detailed case study (>2 hours) which was followed by a presentation. The detailed case study was blank sheet, given pre-prepared materials from which you had to build the LBO, returns implications that you had to present. Don't recall if guidance was given here but expectation was a simple deck on overview of business, profile, returns, risks etc which was discussed after
Any insights on the timeline please? Say I started at a BB this summer 2024 - does that mean that HHs will expect me to participate in the ~September 2025 on-cycle? Or would it be okay to skip this and participate in a 2026 on-cycle, i.e. two years after starting? My team just got very unlucky with a couple pitches so I suspect I won't have execution experience to talk about just one year into the job, but I'm also afraid of the stigma connected to skipping the default on-cycle. Any advice is appreciated!
Firstly, would maybe get away from the US-centric view of PE recruiting. There is no true 'on-cycle' as it stands in London PE recruiting. Firms recruit year-round for seats though it is true that there is sometimes a bit of a cluster in Sep-Oct and in Jan.
Highly unlikely they will want you to participate in processes as soon as you start, though they may call to get an idea of what you're looking for longer-term. It is fine to say you're focused on the job for the next ~18 months and will keep in touch with them in the meantime (see my original point above on keeping in touch with HHs).
Super key in general to remember:
1. PE recruitment is a much later window in London than the US so you have more time than you think. Most attractive window for candidates is often >18 months and 48 months of experience. I would even venture to say that it is common to see Associates leaving to MF seats here (which is unheard of in the US). There is no stigma in waiting the first 18 months on the bench provided you are well-prepped when you come into processes
2. PE recruitment is much more random / out of your control in London than the US. E.g., if KKR are looking for a new Associate for their Generalist team in 2026 they may specifically be looking for a French speaker in a certain vertical. If you don't fit the bill then gotta wait until 2027 anyway
3. Given the above very key to wait until you have some 'actual' execution experience before interviewing. You'll be competing with Senior Analysts and Associates anyway so why handicap yourself
Is it also true that if you fail one process, you have essentially no chance anymore with that fund to get an interview in the future?
Agree with comments above but adding my 2 cents:
1. HHs gatekeep most PE roles in London from LMM to MF. Even if you're introduced into process through someone working at a fund, you'll likely be referred to the HH running the process. Having a good relationship with the HH firm, or even better, the individual running a process will pay dividends
2. Typically seen both a modelling test + case study in processes. The stage where the modelling test takes place varies (e.g. sometimes first round before interviews, sometimes further down the line), but case study is typically the last or penultimate round. Modelling test is almost always an LBO and focused on testing speed rather than complexity. Case study is almost always a CIM / extract and to prepare some kind of IC memo
3. Some processes can have a hard-requirement for languages if the role is filling a specific geo coverage area e.g. DACH, Nordic, etc. Unlikely to break into these processes unless you meet the requirement. Apart from these, shouldn't be an issue
4. I believe this is a less of a hard-requirement vs. what I've read about the US. I'm sure HHs will reach out to GS/MS/JP for their first shortlist, but will definitely expand to other BBs and EBs (and even Big4 for LMM and MM) if the first shortlist doesn't fill the seat. Think the bigger differentiator is how well the HH rates you from previous calls / coffees / processes
Thank you for your input - incredibly helpful. If your title is up-to-date, is there any difference you found in growth processes vs. generalist buyout? Is the case study still an LBO, or more detailed look at an operating model of a SoftwareCo and then returns waterfall (or anything else)?
I've seen quite a few growth people with non-TMT IB backgrounds (primarily M&A) - how broad is the net on sector coverage for HH here? Did you tailor your approach to each HH with respect to growth vs. generalist mandates if so?
Only slight differences during the technical stages, e.g. no leverage, more focus on revenue build, minority stakes etc, but largely straight forward. Bigger differences in commercial discussions during case study and interviews, with focus around understanding growth investing, market dynamics, industry knowledge.
Background can be broad but good to demonstrate experience / interest in tech enabled sectors, but certainly not a prerequisite to be in a TMT group. Key to emphasise throughout the process why growth investing vs traditional PE and a strong understanding of the growth strategy.
languages becoming an issue for like half the places i want to work... how do i get around it?
how do headhunters actually keep track of how much they like you? i feel like kea has legit blacklisted me even though all my interactions with them have been very short and role specific
im just super curious how they track this internally - like on my profile does it say 'do not give her mandates but still reply her emails and be nice to her? i dont get it
CD&R is BB only. nobody else complained about where i work except searchlight
How are EBs viewed by funds?
Favourably generally speaking but in the context of London, some of the larger funds such as CD&R do have a bias against most EBs as they're aware of the fact that their presence in Europe isn't as strong as their US presence. Biggest sign of this is that most of these MFs regularly work with the US franchise of these EBs but almost always stick with BBs on their European deals.
The average EB MD in Europe's deal size isn't comparable to their US counterparts and that's reflected in the junior's deal size and flow
Most MM and LMMs have no real bias for or against EB candidates in London
Ironically US EBs >>> EU EBs (laz/roths etc) despite other comments here (based on number and quality of exits relative to class size)
Why did Searchlight complain?
Told Dartmouth only like hiring from certain banks
Searchlight hires from EBs
who is hiring now? it feels like everyone has frozen process...
do you know why? when is general high season for European PE recruiting? Wonder if it is tarriffs/market related.
Message me directly?
Who is actually hiring? I only know a few
I feel like everyone was hiring end of Jan til end of April and now nothing left. Keen to know if anyone knows of places still hiring
bump
Anyone got any updates on PAI? Is that process still ongoing?
Anyone have any updates? What mid-market funds are hiring or looking to hire shortly?
Who is hiring now?
I know Advent, EQT and CD&R just finished their processes
whats the latest now? who is hiring? especially UMM
For UMM I think Searchlight and PAI will hire in the next quarter
Any mid-market funds?
Who is hiring right now?
Any updates on who is hiring? I heard synova for tech. Not sure on others
Which HH is hiring for Synova?
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