How to Work for a Private Equity Firm

Co-authored by Katherine Kirkinis, Ed.M., MA and Jessica Gibson

Last Updated: May 25, 2021 References

Private equity firms are controlling entities that collect or pool together capital that is then invested in a specific interest or opportunity. The goal is to improve or maximize that particular investment before re-selling it for a profit. Often private equity firms will use strategies such as venture capital to buy a company or business. As a result of this business model, careers in private equity are very lucrative. However, due to requirements and serious competition, securing a job at a private equity firm is somewhat difficult. This means knowledge, experience, and perseverance are essential to getting a job in private equity.

Part 1

Part 1 of 3:

Meeting the Prerequisites

1
Meet background check requirements. You need to be able to pass the background checks conducted by potential employers. Background checks are near universal today, and without passing one, you won't be hired, regardless of your education or experience.
- Federal government regulations prohibit private equity firms from hiring people with a record of theft, embezzlement or similar crimes.
- Many firms will be hesitant to hire you if you've declared bankruptcy recently or have substantial debt.^{[1]
  X
  Research source}
2
Complete your higher education requirements. A college education is one of the most important prerequisites you'll need to work in private equity. Educational requirements, though, will vary depending on position and company.
- A bachelor's degree in finance, business, or economics is helpful, though not always required.^{[2]
  X
  Expert Source
  
  Katherine Kirkinis, Ed.M., MA
  Career Coach & Psychotherapist
  Expert Interview. 14 October 2020.}
- A master's degree in business administration or another related field is increasingly becoming the minimum standard.
- An advanced degree, like a doctorate in economics, will make you an extremely attractive candidate for a job in private equity.
- Enroll in an executive education or certificate program in investment or a related field. Consider other less conventional educational opportunities, like Columbia University's “Deal Camp.”^{[3]
  X
  Research source}
Advertisement
3
Gain experience in a related or relevant industry.^{[4]
X
Expert Source

Katherine Kirkinis, Ed.M., MA
Career Coach & Psychotherapist
Expert Interview. 14 October 2020.} If you're working with the goal of getting into private equity, consider starting by securing employment in a related or relevant industry. This is important, as the experience gained in certain industries will be critical to your success in private equity. You'll need to achieve a management position or higher in these roles to go on to work in private equity. Such experience includes:^{[5]
X
Research source}
- Working as an investment banker or analyst
- Working for start-up firms
- Working in government
- Working in investor relations
- Working in risk management

Part 2

Part 2 of 3:

Locating the Right Firm for You

1
Learn about different private equity firms. Start your search by learning what you can about several different firms. Depending on your region, there are a wide array of equity firms that you should look into.
- Some of the largest, and most prestigious, firms are located in large cities and commercial centers like New York, London, and Tokyo.
- Decide if you want to work for a top-tier firm or if you're willing to accept a position at a second- or third-tier firm that may have limited capital to invest or specializes in a particular industry, geographic area, or business stage.^{[6]
  X
  Research source}
2
Look into the specialties of different private equity firms. Different private equity firms focus on different activities in high finance. Based on your interests or talents, you may want to work with a specific type of firm.
- Leveraged buyout firms. Leveraged buyout firms try to acquire controlling positions in profitable companies that generate a lot of cash flow. By working in a leveraged buyout firm, you'll work to acquire mature and limited-risk companies. One such firm is Kohlberg Kravis Roberts & Co, which purchased First Data Corp in 2007 in one of the largest private equity technology deals.^{[7]
  X
  Research source}
- Venture capital firms. Venture capital firms finance new companies in high-growth industries (like technology) that are believed to have the potential for long-term growth. The risk is high, but the firm gets to weigh in on company decisions. By working in a venture capital firm, you'll be on the cutting edge of industry.^{[8]
  X
  Research source} One example is Google's Google Ventures firm.
- Growth equity firms. These firms take sizable (but not controlling) positions in large and stable companies that are looking to expand their business or restructure, such as a company looking to enter a new market. They invest in more industries than venture capital firms (which focus on high-growth industries) but usually do not fund start-ups. A growth equity firm is somewhere between leveraged buyout and venture capital firms.^{[9]
  X
  Research source} An example is Summit Partners.
3
Network with executives and others who work in private equity. Social networking is an increasingly important part of most all business. By networking, you'll meet people in the industry who may potentially provide you with knowledge or connections when it comes time to find a job.
- Attend conferences. Attend meetings put on by the Private Equity Growth Capital Council, which is an advocacy group organized by a consortium of equity firms.
- Join associations. There are a variety of associations, depending on your specialty and region that you could join and network through.
- Attend functions, parties, or other gatherings. Once you've made a few contacts in private equity, they may invite you to more private functions or parties where you can meet other people.
- Reach out to contacts from college, including professors and peers, as well as your school's employment services.
- Building on other aspects of networking, use social media to tie together your connections and to make new connections.^{[10]
  X
  Research source}
4
Contact a headhunter or executive placement firm. Placement firms are becoming extremely important and popular in our global marketplace. As a result, you should consider listing yourself with a placement firm. The placement firm will collect all of your application materials, and then send those application materials to employers who have jobs that you are qualified for.
- Search the internet well, as there are numerous executive placement firms with different areas of focus.
- List yourself with several placement firms. This will increase the chances of you getting an interview.
- Placement firms almost always are compensated by the hiring firm. This compensation is usually a percentage (often 10% to 30%) of your first year's salary. Compensation does not come out of your pay.

Part 3

Part 3 of 3:

Getting a Job

1
Create a resume with focus on private equity. Having a good resume is critical in getting a job with a private equity firm. Your resume will allow potential employers to see all of your relevant experience.
- Always place your most relevant work experience at the top of your resume, such as your experience as an investment banker or private equity intern. Minimize your pre-banking or non-related private equity experience as much as possible.
- Provide explicit detail about mergers and acquisitions, restructuring deals, and leveraged finance if you have investment banking experience. If you have experience as a consultant, focus on writing about your finance-related projects and clients.
- Include your education at the bottom of your resume when trying to land a job at a private equity firm.^{[11]
  X
  Research source}
2
Craft a letter of inquiry or cover letter. After your resume, you need to create a letter of inquiry. Your letter of inquiry is a short introduction to you and your experience and shows your interest in employment with a particular company. Ultimately, the letter of inquiry will give your potential employers a better idea of your personality and capabilities.^{[12]
X
Research source}
- Start by introducing yourself and stating where you heard about the company or the job posting. If a current employee or someone else recommended you contact the company, you should state that. You should have a letterhead that includes your name, so you may want to identify yourself by your skills.
- In one to three sentences, you should list your education and relevant experience.
- In a couple of sentences, you should discuss any thing that makes you an outstanding or unique potential employee. For example, if you're a former lobbyist and have a lot of contacts in government, you should say so.
- Wrap up the letter by stating what you can do for the private equity firm. Try to distinguish yourself and show vision and ambition.
- End the letter by thanking them for their time and letting them know that you would love to talk further.
- Sign the letter, instead of using a digital signature.
- Tailor each letter to a specific job or company. Make sure to address important job related requirements and/or how you will fit into the company culture.
3
Submit your application materials. After you've got your application materials together (resume, cover letter, and other forms), you need to submit them to the firm or firms you're applying to. This is important, and you need to put care into the submission process.
- Proofread your materials before putting them into your packet. Ask a friend to look at them as well. If you know someone in the industry, have them take a look at your materials. You might get ideas for last minute changes.
- Follow any and all instructions the firms might have. If they have a website submission, submit it there. If they have a human resources person who is in charge of taking new hire paperwork, contact that person.
- Submit your paperwork on time and in full.
- If you have any questions about the submission process, contact the firm.^{[13]
  X
  Research source}
4
Prepare for the interview process. After you've received an invitation to an interview, you need to prepare for it. While your credentials and experience might be impressive, ultimately it is the interview that will seal the deal for you. If you're a likeable person who seems ambitious and energetic, you should have good luck on the job market.
- Familiarize yourself with potential interview questions and scenarios commonly asked by private equity firms. Ask your friends and contacts about their prior interview experiences or research using the Internet as a resource.
- Prepare to be asked about or tested on the modeling of leveraged buyout analysis, private equity case studies and previous deals you have worked on as an investment banker.
- Be prepared to ask a few questions about the firm or about the job you may take. Asking questions shows that you're a thoughtful person who is seriously considering the position. Consider asking a question about the firm's specializing or their position in the market. This might be an especially good question if their position or specialization is changing.
- Make sure your clothes are prepped for the interview well in advance.
- Spend some time on personal hygiene and grooming.

Community Q&A
Did you know you can get expert answers for this article? Unlock expert answers by supporting wikiHow

Question

What work experience will be most helpful for private equity?

Katherine Kirkinis, Ed.M., MA
Career Coach & Psychotherapist
Katherine Kirkinis is a Career Coach and Psychotherapist who has served as a career expert for Forbes, Medium, Best Life, and Working Mother Magazine, and as a diversity and inclusion expert for ATTN and Quartz. She specializes in working with issues of career, identity, and indecision. She has doctoral-level training in career counseling and career assessment and has worked with hundreds of clients to make career decisions through career assessments. She is pursuing a doctoral degree at The University of Albany, SUNY where her work focuses on diversity and inclusion, racism in the workplace, and racial identity. She is a published author and has been featured in academic journals as well as popular media outlets. Her research has been presented at 10+ national APA conferences since 2013.

Katherine Kirkinis, Ed.M., MA

Career Coach & Psychotherapist

Expert Answer

Support wikiHow by unlocking this expert answer.

I recommend you gain experience as an assistant or analyst with either a large private equity or venture capital firm.