Good books to read to help prepare for a job in private equity? (Not recruiting books / guides)

Hello all - any good book recommendations to prepare for a career in PE? For reference, I'm about to finish my first year in banking and have a PE job lined up for summer 2018. Trying to make the most of my next year to help with the transition into the PE role. Any and all help is much appreciated.

Comments (43)

May 24, 2017

Read any book by E.L. James. Highly recommend!

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Apr 13, 2018

One year later and you still got me.....

May 31, 2017

Bump!

Apr 16, 2018

There are a million books on Amazon. Here's a couple that are easy to digest and give you a strong sense of the industry;

Mergers and Acquisition Playbook by Mark Filippel. Go find his podcast Fully Invested, he covers the whole book, chapter by chapter. Plenty of other podcasts out there.
The Complete Guide to a Successful Leveraged Buyout by Allen Michel and Israel Shaked.
Idiots and Dummies Guides to M&A.
Leveraged Buyouts; a Practical Introductory Guide to LBO's by David Pilger.
Mergers and Acquisitions from A - Z by Andrew Sherman. The best foundational book on the subject.

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Apr 16, 2018

sent PM.

Apr 16, 2018

Interested as well @Etaractic

Apr 16, 2018

I'd refer you to the materials referenced below. Moyer's book on distressed is good for a slightly more in depth understanding (albeit somewhat market oriented) than the Cravath summary and is a short read (150 pgs). If you want to get a real understanding of why certain legal concepts are important as a PE investor i'd point to you McGraw Hill's Art of Distressed M&A (500 pgs) -- this outlines distressed valuation, investment methods and most importantly case law (treasure trove of info for dealing with piercing-veil lawsuits and the like for GPs).

Conceptual Overview: http://www.cravath.com/files/Uploads/Documents/Pub...
Beginner: Distressed Debt Analysis by Moyer

Advanced: The Art of Distressed M&A: Buying, Selling and Financing Troubled Companies by Nesvold

Apr 16, 2018

Thanks for the suggestions. Already provided him a digital copy with Moyer's book (FYI, feel free to PM me if anyone is looking for a copy). Appreciate the other recommendations. I actually have never heard of The Art of Distressed M&A, so I plan on checking that out for myself as well.

Apr 16, 2018
houstonbound89:

I'd refer you to the materials referenced below. Moyer's book on distressed is good for a slightly more in depth understanding (albeit somewhat market oriented) than the Cravath summary and is a short read (150 pgs). If you want to get a real understanding of why certain legal concepts are important as a PE investor i'd point to you McGraw Hill's Art of Distressed M&A (500 pgs) -- this outlines distressed valuation, investment methods and most importantly case law (treasure trove of info for dealing with piercing-veil lawsuits and the like for GPs).

Conceptual Overview: http://www.cravath.com/files/Uploads/Documents/Pub...

Beginner: Distressed Debt Analysis by Moyer

Advanced: The Art of Distressed M&A: Buying, Selling and Financing Troubled Companies by Nesvold

This is solid advice.

Apr 16, 2018

May be a little high level for him but the CS Guide to Leveraged Finance is good.

Sep 11, 2018
SECfinance:

May be a little high level for him but the CS Guide to Leveraged Finance is good.

Thanks for this.
Would you happen to know where a copy can be found please?

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9 LBO Modeling Tests, 10+ hours of PE Cases and 2,447+ interview insights across 203 private equity funds. The WSO Private Equity Interview Prep Course has everything you'll ever need to break into the competitive PE industry. Learn more.

Apr 16, 2018

The Intelligent Investor, although seen as outdated when referred to in the context of the public market, still definitely holds weight in the private markets. I asked a partner at a PE firm (family friend) a similar question a few years back, and he told me to go to Benjamin Graham first to get some background on value investing. Just my .02

Fuck Stringer

Apr 16, 2018

If you want something more sensational and exciting, I recommend "King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone" by David Carey. There is some rational in there for why they pursue certain investments (like the cyclical German chemical company), but mostly it's just awesome and badass. Finished it in a day.

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Apr 16, 2018

If you're into distressed debt this book is great:
Buyout and Distressed Private Equity: Performance and Value Creation by Christian Graf

Apr 16, 2018

Barbarians at the Gate is pretty good, if you can get through the historical backround part at the begininng.

I would reccomend how to win friends and influence people.

Apr 16, 2018

^How to Win Friends and Influence People is a great read!

Apr 16, 2018

well, what kind of PE are you interested in?

Apr 16, 2018
couchy:

well, what kind of PE are you interested in?

LBO and Distressed mostly. Thanks for the answers.

Apr 16, 2018
Beny23:

If you're into distressed debt this book is great:

Buyout and Distressed Private Equity: Performance and Value Creation by Christian Graf

Where can you pick it up? I didn't find it on barnes and noble or amazon.

Apr 16, 2018

One thing I think you could do is ask for their model template, some completed models, and some completed investment memos on their existing portcos. This shows you are being proactive and want to get up to speed on the businesses you will be working with. One caveat: some shops will look favorably upon this whole others may view it as you creating work. You need to feel this out given your interactions with these people.

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Apr 16, 2018

managing by the numbers
the art of m&a

Apr 16, 2018

anything less dense than the art of M&A?

i feel like there is so little out there written for PE professionals.

i am going to get managing by the numbers.

Apr 16, 2018

How do you know you want to "run a PE firm" given you have zero experience with it?

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Apr 16, 2018

Always ask your colleagues for such suggestion. Ask for TTS/AMT training. The book by Joshua Rosenbaum is pretty basic but a good start nonetheless.

Apr 16, 2018

Thanks for the response, Zen

I skimmed through the Rosebaum book and agree that it is basic, and also deals mainly with valuation of public companies. I was hoping to find something more targeted towards private companies, or MM PE in general.

I'm leaning towards "Value-creation in Middle Market Private Equity" by Lanier. After reading some of his short articles posted online, it seems like this may be the most relevant. Would love to hear some other input.

Apr 16, 2018

there is NO way none of you do not have a decent response. Would very much appreciate 2 seconds of effort

Apr 16, 2018

Michael Porter strategy books

Apr 16, 2018

I would read some of the private equity books that the Wiley Finance series has (can be found on Amazon). Also, grab a few college books on marketing and try to obtain any industry research reports you can from equity research/consulting groups, etc.

Chance favors only the prepared mind.

Apr 16, 2018

that was my "2 seconds of effort"...

Chance favors only the prepared mind.

Apr 16, 2018

What did you find was the most useful in your preparation? Did you check out any of the suggestions? I'd be interested to find out what you thought was the best source.

Chance favors only the prepared mind.

Apr 16, 2018

Does anyone with PE experience have any suggestions from your own perspective in ramping up?

Chance favors only the prepared mind.

Apr 16, 2018

There are recommended readings under each Industry in our FAQ section.

Direct link: //www.wallstreetoasis.com/faq/what-should-i-read-if-...

Apr 16, 2018
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Apr 16, 2018