Private Equity Recruiting Guide
'Tis the season...
Key tips:
1. Making a good early impression within your banking group is key (better staffings, recommendations to firms, & help with headhunters)
2. Talk to older analysts who have been through the process
3. Ask for old modeling templates and tests (PE firms recycle modeling tests)
4. Practice modeling before your interviews -- tough to catch up at the end
5. Prepare for the soft questions (tell me about yourself, etc.).
6. If you have multiple options, pay attention to the firm culture signals.
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What else you got? Know there are a lot of recruiting threads on here, but monkeys, add your tips below.
re: networking; say I've networked with some middle or upper level folks at some funds I'd like to interview at, but they aren't represented by the head hunters I'm using. With them, how do I initiate the interviewing process? Ask them if they have any opportunities when the interviews start around January?
Yeah especially if they're not represented by headhunters, they're probably not constrained by the typical process timelines - you can reach out with something along the lines of:
"Hey, I'm in the process of interviewing for PE associate positions at several other firms, and would love the opportunity to interview with your firm... really enjoyed our conversations earlier..."
You get the idea.
The most underrated thing by far is doing well in your current job from my experience while also not sacrificing prep time. The analysts in my group who are going to megafunds were doing PE prep and busting their asses to get the best staffings / best recs simultaneously. They did well in interviews, but what was more important was that everyone else in the group was on board with them recruiting out.
Agree with this. Being a top performer within your group is key.
How many people do the megafunds typically interview? Even if I'm not in the top-of-the-top (but still decent product group at MS / JPM), will I get a shot?
Some older analysts were saying everyone in the group got a shot with at least one last year.
This sounds about right. My year almost everyone in my group interviewed with a couple of the megafunds.
The ones that go earliest typically fill their seats first and stop interviewing, but for some of the others it was like a revolving door until they'd filled their seats. I'd bet they wound up interviewing a material percentage of bulge bracket analysts interviewing that year (>5%)... the vast majority never made it past the first round, but they still had a shot.
What is a "decent product group"? If you are in M&A or industry coverage at a reputable bank and you can articulate yourself well to headhunters you should get at least some MF looks during recruitment.
Someone asked me today, so reiterating here: everyone has their own approach to preparing for PE modeling tests. There is no "one way." The important part is to be prepared.
That being said, the way described in the article above (weekly practice LBO leading up to recruiting) is thorough and pretty similar to what I did - probably a little overkill. The MultipleExpansion template is good. You don't want to lose an interview because of a dumb LBO mistake.
PE Recruiting Advice (Originally Posted: 02/09/2018)
Hey guys -
Have you had any experience of reaching directly out to PE firms? I have had some initial interviews through headhunters and networking but wanted to know an approach for cold recruiting. I have a list of firms that I want to target but I am having difficulty deciding the best way to attack it.
Should I reach out to associates through their 'team' page or linked in? Is it best to reach out through their contact us page on the website? What if they do not have any of these options? Have you guys found techniques that work?
Thanks guys
Don't use the generic contact us page. If anything, reach out to associates to see if they're open to a phone chat or if their firm is recruiting
Is PE recruiting supposed to be a big secret? (Originally Posted: 07/07/2013)
I'm in a group that has historically given references to analysts and placed people into PE/HFs. Given this how open can one be about one's PE/HF ambitions? Can you openly discuss this with associates/staffers asking them for advice? Can you get away with reading about PE/WSO/practicing some modeling at work (with a privacy screen on your monitor of course - I sometimes get a few hours of work where I have literally nothing to do/read and there is only so much ESPN you can read). Or should your ambitions be masked and a banking-for-life facade be put on?
very interested as well
From what I'm reading here, a Summer 2015 start date would let you complete three years at your bank (one in S&T and two in IB). If that's the case, then you should absolutely recruit in March 2014. Waiting until January (unless the PE cycle is pushed back this year) will severely limit your options with very little benefit to you. It's very easy to recruit without letting your group know, if that's what you're worried about. Headhunters and buyside shops realize that not all groups are supportive of interviewing and will not contact your group without your OK. However, if your group is supportive of the other first years recruiting, I seriously doubt they would treat you any differently. I think you're overestimating how much they care about what you do, quite frankly.
PE recruiting help (Originally Posted: 12/28/2014)
Hi, I am a first year at a historically strong BB coverage group (ms media, GS ind). However, I have had very little m&a exp so far. The only deal I was on was a terminated sell side in my first month before much work was done and it was a sub 300mm deal anyway.
Long story short, I think I am screwed for recruiting unless something materially changes in the next 2 months. If it does not, what do I do? Please advise.
you'll be fine, just focus on talking about what you have learned so far.
I'm in exactly the same boat. I'm more concerned with the modeling tests though. Not to hijack your thread but how are you prepping for these? I'm comfortable building models, but I'm more concerned with various types of debt and and management ownership stipulations in the assumptions I'm seeing in old modeling tests. These are things I've never come across and I'm not really sure how to prep for that... Any thoughts?
Edit: an example would be PIK interest. Had I not seen it while practicing, I wouldn't have known how to model it.
Someone else just started a thread about this you may find helpful: http://www.wallstreetoasis.com/forums/pe-associate-interviews-4-hour-lbo
If you're not familiar with something, then simplify it, skip it, and move on. Sometimes you'll have opportunities to ask questions while you model, sometimes not, but you'll always have an opportunity to explain what you did afterward.
Deal exp doesn't actually matter that much in PE recruiting for first years. You've only been there half a year, how much could you have realistically done? There's a good reason why PE firms hire you for a job 18ish months out and not for an immediate start (usually) - they know that you'll get enough experience over your whole analyst tenure.
That sell-side deal - no one has to know it died. Just talk about what you did and learn to spin it.
I am always hesitant to suggest someone go ask their staffer for additional work because you have capacity (because that is how you get fucked) but maybe think about this. 2-3 months is more than enough time to get some meaningful experience in a deal. Maybe also go to some older analysts too and ask if they need some help. Beginning of the new year is always busy with new stuff in the pipeline.
Side note: You've been on one live deal (for one month) - what exactly have you been doing with your time? Pitching a ton? Then talk about that. If you've just been sitting around browsing ESPN though... You need to be proactive about getting experience. No one in your group is there to help you succeed in your career; they have their own to worry about.
Also, OP: I do not know if your username is your real name or not, but if it is, I would suggest changing it.
PE recruiting - SF looking to stay in SF. Anyone been through the process and willing to help out? (Originally Posted: 01/27/2015)
Just looking for a resource to ask a few questions about timing and experience for anyone who went through the PE recruiting cycle based in SF and looking to stay in SF. Please feel free to PM me if you're feeling generous, many thanks in advance.
this is dated, but I'm interested on how it went, so how'd it go?
Late to PE Recruiting - Help?! (Originally Posted: 02/16/2015)
Hi,
I am currently a first year analyst at a BB and only recently made up my mind to go into PE. I was very unsure what I wanted to do before and jumped around between HF and PE and just last week finalized I want to do PE. I know the process has kicked off but was wondering if it is too late for someone like me? I will probably need another two weeks or so to prep and for case studies and interviews. I guess I will focus on medium-sized shops. Is it too late for me? Should I just wait until next year? Do you think some firms will still be hiring in March? And another thing that is very important for me is staying in nyc.
Plenty of non mega funds that will recruit probably in a month or so is my guess
Well it depends - are you open to different fund sizes, or do you HAVE to be at a mega/upper MM fund?
.
What if I am targeting medium to lower MM?
Then you should be fine. These guys typically go after the bigger firms, and for many, there are year-round opportunities since they recruit more on an as-needed basis rather than a strict schedule.
Note: I'm talking about firms with
PE Recruiting, starting the process, where should I start? (Originally Posted: 07/30/2016)
I'm a first year MM IB analyst and very set on getting a PE offer by the end of my first year. Obviously it's early, but can anyone recommend some first steps? I'd love to spend a few hours every weekend making sure I'm ready when the time comes. Thanks to all in advance
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