From Undergrad to PE
Hey guys, I'm new to WSO but I've been stalking it for about a year now. I graduated high school literally two days ago, and my goal is to get into PE straight out of college. I know this is usually seen as a hard swing, but a few months ago I got into a top target school that has a track record of putting kids into top PE firms every year, and I'm confident that if I do my best I'll have a shot.
With that being said, I want as much knowledge about this ordeal as I can get. My question is what can I do in college to maximize my chances of breaking into a top PE? I mean besides the obvious like GPA, ECs/leadership positions and internships. I guess these things are important whether you want IB, PE, VC, or HF but does a particular one of these take priority in PE? Is there anything important about internships or something that is a big deal for them but I'm not seeing? Sorry if I sound stupid I'm shooting from the hip here and going off what I know from reading websites like this. But basically, how do I get into PE from college? I haven't been able to find much on this just because it's pretty rare and I feel like most blogs and websites feel like it's not worth their time to cover. But I think it would be good to get some actual information about it out here for me and future kids like me to see. People who did it themselves would be extra awesome, but really, any input from you guys is valued and welcome, because odds are you know a hell of a lot more than I.
Also, am I even doing the smart thing? I'm operating under the assumption that going straight into PE is better than going college-->IB-->PE after reading arguments for both sides, but I could be wrong. What do you guys think?
You gonna be a wharton freshman in the fall?
No sorry dude
Finance clubs are particularly important. There will be fewer people interviewing at even the MFs than at the banks, so connections and "being in the know" matter. Plus, some of the places taking undergrad analysts will be smaller, which means recruiting will be less structured and club involvement will keep you aware of one-off opportunities that crop up.
Can't answer the 2nd question since I'm not in the industry, but good luck!
I know a guy that did it, he sat near me during my BB summer internship training. He went to a target, maintained good grades, and most importantly, did a number of banking internships and did them early. I believe his path was no name banking internship after Freshman year, Mid-tier BB IBD internship Sophomore summer, Top tier BB IBD internship Junior summer, and then started as a FT analyst at a MF PE after graduation.
This type of path combined with networking would probably give you a good shot. Essentially this guy had already done a year of banking and had great names on his resume.
are you familiar with the process of getting a summer analyst internship sophomore year? i'm a rising sophomore doing a PE and PWM internship right now
Try getting early experience in IB as suggested by mrharveyspecter.
PE internships would also help a lot. Use connections and networking, it works better than for IB because the industry is smaller and less institutionalised (banks have automatic processes, standard procedures, big HRs). If you don't manage to do this, you should still be able to get an unpaid internship at a smaller fund to begin with. Their problem is that they don't have the scale and programmes to train you, so self learning technical skills would also help.
PE Firms Recruiting Undergrads (Originally Posted: 10/20/2017)
I'm a senior at a target school (HYP) who did a tier 2 consulting internship last year (OW/Deloitte/S&) and am looking to start my career in PE. Does anyone know if any PE firms are still in the process of filling their 2018 analyst classes with college seniors?
Hey CountryBumpkinYeet, I'm the WSO Monkey Bot and I am sad to say, but this thread is lonely, so thought I'd post in here to try and help out. Some potential topics that might help:
More suggestions...
I hope those threads give you a bit more insight.
ugrad-->PE, what %? (Originally Posted: 09/25/2012)
Was discussing this with one of our campus reps, I know it is rare, but i've talked to some people who have done it, and also read some stories on the site, what % of people working in PE broke in straight from ugrad?
I remember someone telling me a story about how either during senior year (or as a recent grad) they literally went to 50+ PE shops and dropped their resume off in-person at each, and this lead to them getting an interview and eventually a job with one of the firms.
I'm sure there are plenty of other ways people have done it, ie via hustle / cleverness / etc. Curious to hear some of these unique "break-in" stories...
It varies by firm. At the vast majority, 0. Some firms take a couple (e.g. BX). Silver Lake is the only firm I know that regularly recruits undergrads (even then, only from Wharton). Very small firms might hire an undergrad now and then (much cheaper than an IB veteran). So, industry wide, just a few %?
I really think you would have to get very lucky and have a ton of modeling intensive work experience to get an interview like you described. In every case I have seen (admittedly, just a few) it was a combination of a strong connection and good work experience.
I was lucky enough to land two megafund offers out of undergrad so might be able to shed some light on the process.
Interned in IBD at a top BB, was approached by headhunters mid-summer. Had some networking events, sent formal applications and interviewed during the final week of the internship and for a few weeks after that. Interviews were very technical and extensive (20+ interviews for one of the firms).
Happy to answer questions.
Can you describe some of the questions or cases you got?
What's the downside to skipping those 2 years of valuable experience in banking?
Smaller network - sell-side is a good place to build a list of contacts with after burning the midnight oil with your team for a year or two. Also chance no one recognizes your firm
I managed to break into PE straight from undergrad through rather unconventional means. I don't want to publicly give away any specifics because of privacy reasons but a couple things: 1) It can be done, but with a lot of persistence and (probably more importantly) luck. 2) I am beating a dead horse, but PE is not for everyone. Of course people won't listen to this point until they get there. 3) My own experience has been mixed so far (some positives, a number of negatives). Was it the right choice? Not going to know for a more few years of busting my ass.
azndevil666 and goalseek, did you get it through your network or dropping off resumes/etc?
also, how extensive was your knowledge of modeling, banker metrics, etc?
what did you answer for "why PE and why directly out of college?"
thanks
1) Brute force (PM me if you're interested in the full story, again don't want to disclose info) 2) I knew absolutely nothing about finance as it's done in the real world, really had zero experience in anything 3) I can't remember what I said, but it probably made no sense.
Basically, I fell ass backwards into the opportunity, again which was good, but also not so great.
xxxx
Undergrad degree and private equity (Originally Posted: 02/06/2012)
Is it true that even after being a good analyst at a BB bracket elite PE(Blackstone, KKR, TPG etc) won't hire you if you don't come from a top 10 undergrad? Why? If you go to HSW for business school will they still hold your nontarget undergrad against you?
Is the pay at the elite pe firms significantly more then other pe firms?
where did you hear this? there is always some selectivity but i know plenty non targets that work at mega funds.
On this forum. I can't remember the post but some were saying that they won't recruit you ever if you didn't go to the right undergrad school.
Definitely not true. As long as you worked on decent-sized deals and gained valuable experience at a top bb then you will have a nice shot at the major league's.
not true, don't believe everything you read...even on this forum
Especially on this forum.
some of the partners didn't even go to top 100 schools. stop taking advice for ignorant school boys who wouldn't know the difference between a PE job and sexual intercourse with a woman because they have had neither.
OH SHIT
Not true, but it certainly helps a huge amount to be out of a top UG... and it helps even more to be magna/summa from HYP... but does that really surprise you?
Take a look at HF's associates... there are plenty from "non-top" target schools like UVA, etc... (albeit they are still high quality educations)... that said, there are a disproportionate number from Harvard and Wharton.
http://www.hf.com
Breaking In from Undergrad: Energy PE (Originally Posted: 01/03/2018)
You definitely hear about select students from HYPW breaking into PE straight from undergrad for relatively generalist roles.
Do students from places like McCombs or Rice have any similar shot at breaking into Energy PE MFs in Houston? Or are they stuck with Houston BBs and EBs?
And I realize if UT and Rice grads are, in fact, breaking into Energy PE shops, it would be the exception, but I'm curious nonetheless.
Hey gangstabanka, I'm the WSO Monkey Bot...do any of these help:
Or maybe the following pros can chime in... @Ryo-Hata" Ashoka 1 clarey.zhu
Hope that helps.
also interested
Undergrad Qualifications for PE Associates (Originally Posted: 05/14/2008)
Hi,
I am a senior at Harvard/Princeton/Yale/Wharton, working next year at MBB in one of their bigger, more finance-focused offices. I would like to have the opportunity to do PE 2-3 years out. I have a > 3.8 GPA (by a bit), and (somewhat) relevant work exp (to PE) last summer.
I am wondering, though, how much do things like getting into Phi Beta Kappa, writing a well-reviewed thesis, and graduating summa vs. magna vs. cum laude affect my chances. At all? Is, say, being a Yale grad with a 3.8 but average thesis and cum laude a relative advantage or disadvantage? How much does this stuff matter relative to partners' reviews of my work? I hear back about a bunch of that stuff soon and am worried about how much these sorta irrelevant but very prestigious designations matter if I want to jump to BX/KKR/TPG/Carlyle/Bain Cap, or another large cap in 2-3 years.
Thanks.
with the minor exception of gpa, all of those accolades are nice-to-haves but, by and large, won't make or break your candidacy. i would imagine that the resume review process in private equity is quite different from the process at M/B/B or banking
take this with a grain of salt as i've never reviewed resumes from that side of the table, but relative to partners' reviews (or, more likely, manager and consultant reviews and recommendations), such designations matter very little. your gpa remains somewhat important, but at this stage, it's more about your work experience, your education, and most of all, your interest in private equity and investing (and ability to articulate all of these points).
on a side note, i'll argue again that a strong finance background combined with due diligence experience at M/B/B make for pretty strong candidacy. don't worry about those other distinctions...
posters with actual experience reviewing resumes in PE, please feel free to shut me up if i'm mistaken.
Getting into PE is all about interviewing. Work experience, story line, and personal fit trump all. Assuming you are at a BB in a good group and get good reviews, headhunters will be responsive and will get you in the door. Beyond that, your resume won't matter much.
Based on my experience and talks with people at my firm: marginal to no difference.
GPA above 3.7 or so is a wash. Different majors, different gradings, different schools/classes etc. makes it hard/impossible to compare.
Of course, a Summa or Magna Cum will look better than no honors at all, but marginally so.
The thesis makes zero difference. Not even in B-school admissions.
Work experience and reviews from your superiors. That's what counts.
Curiousmonkey is correct. Work experience, and your ability to convey the value of that work experience during interviews, trumps all.
3.8 GPA, cum lade bullshit? so you are pretty much saying that you had no life in college..poor you, i feel bad for you. keep in mind that u can teach business almost anyone, but you can't teach them personal skills..just keep that in mind
uh, what? can someone please provide a translation for this...in English??
Or getting a 3.8 wasn't as challenging as you might believe, and hes still well rounded with good personable skills.........
A 3.8 pretty much puts you in Magna Cum or PBK category at a top school. Maybe not in schools where grades are on average higher like Harvard, Stanford, Yale and Brown. 3.8 wharton is definitely magna cum, and i've heard the same from friends at dartmouth and columbia.
my school had high 3.7's for magna cum.
also, about 15% of the class gets magna cum. if you consider how many of the top kids at any school are pre-meds (a ****load), pre-law, and pre-grad school, a 3.7-3.8 in the finance/consulting world is pretty solid and a challenge especially if you have a science/math/finance degree.
I thought Magna was 3.6 and Summa was 3.8.
oh yeah, i forgot. wharton is different.
at other schools, magna is top 15% and summa is top 5%.
although, i find it hard to believe that only 5% of the class at wharton has gpas above 3.8... hmm
hmmm....i could buy it. The average GPA is suppossed to be about 3.0 or 3.1 so it's quite possible that 3.8 is top 5.
Duke's '08 summa was like 3.9 something
So what do you do? -I work for an investment banking firm. Oh okay; you are like my brother, he works for Edward Jones. -No, a college degree is required in my profession
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