PE: The Most Sought-After MBA Jobs

Source: Private Equity Career Primer by MBA Career Coaches

The primer, available for free, is an essential job search tool that explains what people in private equity do, the pros and cons of being in the field, how richly compensated staffers are paid given their positions, mini-profiles of the top employers, and a guide to the traits PE firms are looking for in the students they hire. It’s a quick and well-written read, providing everything you need to know to investigate a career option in one place.

“Your path to the industry will likely require previous training in investment banking, consulting, or company operations at a high level,” explains Guido. “Although you ideally would gain this experience before you earn your MBA, you could possibly work in one of these industries after graduating from business school and then transfer to PE after a few years. Top firms very rarely hire someone with no previous investing experience.”

WHAT PRIVATE EQUITY FIRMS LOOK FOR IN MBA TALENT

Guido says that most PE firms look for similar traits when recruiting:

1. Very high IQ and demonstrated ability to quickly assess complex data

2. Willingness and ability to work well on teams as both a leader and a follower

(on any given day, you will do both)

3. Public speaking and communications skills, and the ability to quickly build

rapport (emotional intelligence definitely matters)

“The implicit lesson is if you don’t already have a foot in the door, it’s probably not going to happen post MBA and your better bet is consulting or banking and then trying to make the transition later. I personally believe the majority of those spots are people going back to PE. These firms are small shops so they don’t hire a lot of people and they let the market do the work for them. They will poach the top people in other firms rather than do the cattle call at the top business schools.

PAIN POINTS FOR CAREERS IN PRIVATE EQUITY

Of course, these jobs aren’t for everyone–even if you can get your foot in the door. As Guido points out in the primer, the pain points are many.

• Consistently long and typically unpredictable hours

• High intellectual rigor/mental demands

• Substantial compensation variation based on deal performance

• Frequent travel

• Frustration from (often) hundreds of hours spent in pursuit of a deal, only to

ultimately lose that deal

• Significant pressure on company performance post-acquisition due to high

levels of interest on the large debt assumed during the acquisition (any

hiccup in company performance can lead to the threat of bankruptcy)

But if you can break through this highly selective field and succeed, you’d be well on your way to creating true personal wealth.