Guys & Gals - I’m currently working with a power generation company (trading analyst role) and would like to move into the Private Equity sector. I realize that the majority of the candidates applying for a PE role have went through a 2-year IB analyst role. With my current experience and academic background (4-year undergrad with Finance from tier-1 school), I might have a chance to break into this industry. To build my credibility, I’m hoping I will successfully pass the CFA L1 exam in December (if so, take CAIA L1 in Sept and then CFA L2 thereafter). For those who are currently in the PE sector and my fellow candidates, do you have any advice you will be kind enough to share with me? Thanks in advance!
I can’t really imagine that passing level I will really help much in PE. Couldn’t hurt, of course. I’m not in PE, so take my advice for what it’s worth, but I think your best bet if you want to get into PE would be to get an MBA. My impression is that everyone and their dog wanted/wants to be in PE, so it won’t be an easy road. What is it about PE that interests you?
I think a career in PE or something similar is interesting because you get an opportunity to work with a variety of firms to help them strengthened and grow. Along the process, you’re given an opportunity to research about the company, its operations, and its competitors which in turn helps you to develop a strategic plan for the company. Overall, its a great environment to gain knowledge and utilize one’s entrepreneurial spirit and past experience.
While it is true many associates come from Ibanking, this is increasingly not the only way you can break into PE. That being said, it is still very difficult. Get a good MBA and network will be your best shot, I think. As far as getting the charter, my impression is that many people in PE don’t give a $hit about it. Of course it varies from shop to shop. It couldn’t possibly hurt your chance in PE, but it won’t help much either. Sorry~
I work at a mid-market buyout fund. Previously did some asset management. I have a masters and an mba, currently waiting for my LII results. Well, most of my co-workers come from consulting or IB, that’s true. But I reckon that’s not a must have. In PE there is neither the structure nor the time available to build up skills from scratch, therefore you need to bring the required skillset from previous jobs. Of course, the I-Banking (corporate finance) skillset is very congruent with the one needed in PE, which may explain the aptitude for these characters. I reckon that a good trackrecord concerning deals helps a lot. PE needs ppl that hit the ground running and past transaction experience (meaning that you’ve done a to z and not just figure 12a in the pitchbook) is the best proof. On the otherhand, I got into PE without ever seeing an ibank or a consulting shop from the inside (I had some other arguments though). Subsequently, getting up to the flightlevel was brutal. Anyway, never ever listen to other guys giving you BS. If you think PE is the thing for you, give it a shot. They want to see ppl who try a bit harder…
If I pass Level 1, do you think it will be much easier to get interviews with IB firms?
CFA_nerd Wrote: ------------------------------------------------------- > If I pass Level 1, do you think it will be much > easier to get interviews with IB firms? No.
CFA_nerd Wrote: ------------------------------------------------------- > If I pass Level 1, do you think it will be much > easier to get interviews with IB firms? At my bank, many bankers have the charter. But then again, it varies from shop to shop. Banking in general does not value the charter as much as some other areas in finance. (ER, IM, etc) But getting it couldn’t possibly hurt.
$tarving_Banker, Nice name. If you don’t mind disclosing, what bank do you work for?
CFA_nerd Wrote: ------------------------------------------------------- > $tarving_Banker, > > Nice name. If you don’t mind disclosing, what bank > do you work for? No, not at all. I work for a U.S. subsidiary of Bank of Montreal. I started out as a credit analyst in commercial banking. Currently working in the workout group.
CAIA is garbage btw. Focus on obtaining your CFA charter.