MBA Student Seeking Advice for Their First PE Deal Team Role

Congratulations on landing your top-choice PE internship! Based on the most helpful WSO content and advice from professionals who’ve been in your shoes, here’s how you can prepare and excel in your first PE deal team role:

Preparation Before You Start

1. Brush Up on Technical Skills:

   • Modeling: Ensure you’re proficient in LBO modeling, as it’s a cornerstone of PE. Practice building models from scratch and interpreting outputs.
   • Valuation Techniques: Be comfortable with DCF, precedent transactions, and comparable company analysis.
   • Accounting Knowledge: Refresh your understanding of financial statements, working capital, and key metrics like EBITDA, IRR, and MOIC.

2. Understand the Firm’s Strategy:

   • Research the firm’s investment thesis, target industries, and portfolio companies. Read up on recent deals and fundraising efforts.
   • If the firm has a specific sector focus, dive deep into industry trends, key players, and value drivers.

3. Leverage Your Background:

   • Your consulting and corporate development experience is valuable. Highlight your ability to assess markets (CDD), identify value creation levers, and execute strategic initiatives.
   • Be ready to connect your past experience to PE-specific tasks, like evaluating investment opportunities and driving operational improvements.

4. Network Internally:

   • Reach out to current associates or alumni at the firm to understand the culture, expectations, and nuances of the role. This can give you a head start on what’s valued most.

During the Internship

1. Be a Sponge:

   • Absorb as much as you can about the deal process, from sourcing to due diligence to portfolio management.
   • Ask thoughtful questions, but balance curiosity with independence—show you can figure things out on your own.

2. Excel in Due Diligence:

   • Your consulting background gives you an edge here. Be meticulous in market research, competitive analysis, and identifying risks.
   • Go beyond the surface—offer insights that could impact the investment decision.

3. Master the Numbers:

   • Be detail-oriented in your modeling and analysis. Double-check your work to ensure accuracy.
   • Understand the “why” behind the numbers. Be prepared to explain your assumptions and how they tie to the investment thesis.

4. Communicate Effectively:

   • Tailor your communication to your audience. Senior team members value concise, actionable insights.
   • Be proactive in providing updates and flagging issues early.

5. Show Initiative:

   • Volunteer for additional tasks or projects, especially if they align with the firm’s priorities (e.g., fundraising or portfolio management).
   • Demonstrate a strong work ethic and a willingness to go the extra mile.

6. Build Relationships:

   • Develop rapport with your team and other stakeholders. PE is a relationship-driven business, and being likable can go a long way.
   • Seek feedback regularly and act on it to show you’re coachable.

Key Areas to Focus On

1. Fundraising:

   • Since the firm is raising a new fund, familiarize yourself with the fundraising process. Understand LP dynamics, fund terms, and how the firm pitches its strategy.

2. Portfolio Management:

   • If you get exposure to portfolio companies, leverage your corporate development experience to identify operational improvements and growth opportunities.

3. Investment Committee (IC) Materials:

   • Pay attention to how IC memos are structured. Learn to distill complex analyses into clear, compelling narratives.

Long-Term Success

• Deliver Results: Your performance will be judged on the quality of your work and your ability to contribute meaningfully to deals.
• Stay Humble and Hungry: Be confident but open to learning. Show that you’re eager to grow and add value.
• Position Yourself for a Return Offer: Make it clear through your actions that you’re committed to the firm and its success.

Your non-traditional background is an asset, not a liability. Many PE firms value diverse perspectives, and your consulting and corporate development experience will allow you to bring unique insights to the table. Good luck—you’ve got this!