Private equity firms are as selective in their hiring as they ever have been. Even some of the largest firms are now only hiring a few new people each year.
The good news, for those looking to land private equity jobs, is that there is no background that is an absolute requirement. We said it before – firms hire to fill a need and if your education, experience and talent fills that need, you are in the running.
No MBA? You Are Still in the Game
Don’t be discouraged if you didn’t attend an Ivy League school. Despite popular belief, having an MBA from a top tier school and experience working for an investment bank is is not required. Our Private Equity Compensation Report revealed, for those with less than 5 years of work experience, less than 10 percent started in private equity immediately after graduating from an MBA program. And the compensation edge that MBA’s enjoy closes quick for those with that level of experience.
Still, for those early in their career, breaking into private equity is not easy, especially given the amount of experienced financial talent currently in the market. These more seasoned professionals bring experience, skills and value that can be easily demonstrated.
The Private Equity Talent Race is Changing
As private equity shifts from a financial engineering focus to an operational focus, we see an increasing focus on operational experience. Professionals are migrating into private equity after years of working at companies in a particular industry sector. Deep operation knowledge is what is required to build and maintain the value in portfolio companies now.
Some private equity firms are still leveraging the recruiting firms to find candidates. If your personal network is not very strong, you will need to nurture a couple of solid relationships with the private equity recruiting firms.
For more on this, check out the article in our career advice section on How to Get a Private Equity Job.
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