A Comprehensive Guide to Breaking into Private Equity

The Roadmap to a Career in Private Equity: From Analyst to MBA

Navigating the private equity (PE) landscape requires understanding the primary entry points and the qualifications necessary at each stage. Let’s delve into the ideal criteria for breaking into PE, from analyst roles to mid-career opportunities.

Entry Point: Analyst Role (Pre-MBA)

The journey often begins pre-MBA, targeting an analyst position. Ideal candidates typically emerge from top undergraduate programs, boasting high grades (3.7 summa cum laude or higher) and significant leadership experiences, such as leading a finance club or being a varsity team captain. Practical exposure through internships or involvement in student-led initiatives like business accelerators or investment funds is crucial. Since an analyst’s role involves sourcing, combining finance with sales experience, acquired through internships or part-time jobs, is highly beneficial. Securing a junior year internship can be a strategic move towards a full-time analyst role.

Entry Point: Associate Role (Pre-MBA)

Although the analyst path is gaining traction, many start their PE careers at the associate level. This usually involves a stint in investment banking or management consulting, offering a blend of accessibility and valuable experience. While a strong undergraduate background is essential, the pedigree of the institution may be less critical if one excels as a top-tier analyst in a reputable firm.

Entry Point: Mid-Career or Post-MBA Roles

Entering PE mid-career or post-MBA is less common but feasible. Candidates with prior experience in buyside investing (like PE, hedge funds, or venture capital) find it easier to transition from an MBA program. For those without such experience, the journey is tougher but not impossible. Success factors include:

• Attending a top 10 business school.
• Having a relevant and applicable background.
• Targeting PE firms open to diverse backgrounds, often smaller firms.
• Flexibility in role levels (associate or senior associate).
• Flexibility on taking considerably lower comp
• Gaining extensive experience through MBA internships.
• Focused approach during the MBA, exclusively targeting a PE career.
• Exceptional networking skills
• 99% of private equity headhunters focus on filling the pre-MBA ranks due to volume

Entry Point: Operations / Consultant Role

Apart from investing roles, operations or internal consulting positions in PE firms offer rewarding careers. These roles involve due diligence, strategizing for portfolio companies, and supporting investment teams. Relevant experience is key, such as management consultancy in PE diligence or specific industries, or operational experience in growth, marketing, or market entry strategies. While these roles provide entry into PE firms, they often lack the upward mobility of other positions.

At Any Level: Nail the Interview

Regardless of the entry point, excellent credentials and networking are crucial. Equally important is acing the interviews. Mastery in interviews and proficiency in PE case studies are indispensable for success in this competitive field.

I have compiled a database of 375+ private equity firms. Information includes name, location, focus, investment exits, website. Hope folks trying to break into PE find this list helpful. It goes beyond the mega funds and middle market PE funds. It also showcases micro PE and smaller funds that are typically hard to find.