Which is more important in PE: IQ or EQ?
:(
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
May 31, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Based on this question I wouldn't be worrying about working in private equity if I were you boss
What do you mean?
Are u referring to PE in the US or Asia (China/HK)?
Why do you ask? Is there a difference between both regions?
There’s a threshold level of IQ where if you’re below it, you’re not going to be able to do the work (at least at Junior / mid levels). Once you cross that level, EQ becomes a hell of a lot more important. 33 ACT plus high EQ kicks the shit out of 36 and low EQ all day, particularly as you move up.
What would you say that objective threshold IQ number is?
If you've actually taken an IQ test, your EQ is probably too low to worry about any of this.
You'll have to take my word for it, but I have seen at least one study indicating that an IQ threshold of around 130 or so is sufficient, such that additional points above that number do not add many (or any? I cannot recall) dollars to one's expected lifetime income. Passes the sniff test, at least to me; if your IQ is 2+ standard deviations above the norm, then you would probably get much better "return" focusing on the softer skills.
Depends on the context of the 29. Test scores are really hard measuring sticks, because the same score means very different things for a kid who used every test prep resource under the sun vs the inner city or rural kid who had none.
It is going to be below what a lot of PE shops look for, so you’ll have to work harder for your shots, and when you get them you better be able to demonstrate your smart/prepared.
I honestly think it’s less EQ than just sheer willpower to build/maintain relationships and staying up to date with the market (which naturally comes from networking).
Like I’ve met a lot of senior folks that seem to do relatively well, despite being pretty damn autistic to be around/unlikeable. Strikes me as odd how many companies warm up to a PE Partner that has what they need, which is $$$. They just love the grind of finding angles, meeting new teams, etc etc. not saying most don’t have high EQ but you don’t need it if you love the grind enough.
OP here. Really appreciate your response and insights. Can you enlighten me on why people are finding my post funny from the first comment above? I am still in college and am trying to see what I can improve on the most, but I don't know why people are laughing at me. Can you explain to me why?
Lol, everyone's laughing at you cuz it sounds like you have low IQ and EQ so breaking into PE should be the least of your concerns right now.
Posts like this are what keep me alive, thanks for the laugh
Thank god OP posted anon. OP lacks in EQ. Please pity OP and be nice to OP
LMFAO what a clown
dang i missed the OP, can anyone repost
Same
OP here. Are you the person who wrote the whole WSO post on IQ by any chance?
Nihil eius illo ad enim eos. Ad illum laudantium et nisi sapiente quibusdam ad. Sed aut vero omnis et. Impedit esse sit quis eaque recusandae quisquam sint et.
Accusamus deserunt non velit. Omnis est id velit molestiae veniam incidunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Incidunt quo quae quisquam doloremque ad. Est laudantium doloremque occaecati repellendus et modi. Officia pariatur quas sit autem et.