I am currently working on systems and a CFA Level 3 candidate. I am interested in joining the private equity industry. Could somebody please let me know the following (i) Skill sets required- Educational qualifications & other requirements (ii) Companies to apply for (iii) Questions asked in the interview I am bit desperate to change my current job and any help, suggestions would be highly appreciated.
you need to share more about yourself before anyone will be able to help. That will help people gauge whether you have a snowball’s chance in hell.
I have accounting qualification (CPA equivalent) and have just taken the CFA Level 3 exam. I am currentlyworking on IT systems of a derivative project Hope this is enough.
i) top mba/ugrad w/sellside experience, modeling skills, cfa won’t help much ii) look up local companies; if you live in a metropolitan area, there should be quite a few; use headhunters, colleagues, internet, etc. iii) not so sure, but i’m assuming transaction-related experience and questions will be fleshed out, modeling tests, good fit, etc. as danteshek said, good luck… numi and others should be able to shed some light.
trying to jump directly to Private Equity from “systems” will be extremely challenging. These firms generally are highly selective and demand very strong pedigree (schools and work experience). Also keep in mind, there are many, many ibankers out there from “Financial Sponsors” “Leveraged Finance” etc. that are looking around for jobs. Many of these folks are connected with very strong pedigree. Good opps at good firms will be VERY hotly contested. sorry to be so negative, just wanted to give you a realistic expectation.
what do you have to offer a PE? you don’t have deep financial statements analysis skills (like the numi’s of this world) you’ve not been a senior exec/mgr with proven operating success you’re not even a failed entreprenueur you don’t have deal-making prowess (not rainmaker) you haven’t got sharp strategic insights into an industry or strategy consulting experience what the heck is it that you have to offer? sorry to be harsh, but a bunch of you guys out there just get attracted to PE for the wrong reason (money, lifestyle, etc.). your interest and passion (if it exists for the right reason) is maybe maybe maybe the only partially interesting angle, but there are so many out there with a lot more to offer, why you? this is how a PE will view you - hope it helps
why wouldnt his CPA equivalent and L3 candidacy be reflective of deep financial analysis skills?
rohufish Wrote: ------------------------------------------------------- > what do you have to offer a PE? > > you don’t have deep financial statements analysis > skills (like the numi’s of this world) > > you’ve not been a senior exec/mgr with proven > operating success > > you’re not even a failed entreprenueur > > you don’t have deal-making prowess (not > rainmaker) > > you haven’t got sharp strategic insights into an > industry or strategy consulting experience > > > what the heck is it that you have to offer? sorry > to be harsh, but a bunch of you guys out there > just get attracted to PE for the wrong reason > (money, lifestyle, etc.). > > your interest and passion (if it exists for the > right reason) is maybe maybe maybe the only > partially interesting angle, but there are so many > out there with a lot more to offer, why you? > > this is how a PE will view you - hope it helps Rohu, I agree with your statements 100%. Similar statements could be made for BB IB, Equity Research, Hedge Fund PM, “Being a trader”, and all the other usual suspects that attract most people to “high finance”. In my experience, most just heard of, or have seen people in such careers making big bucks, driving fancy cars, getting hot girls etc. I would say 7 out of 10 people I come across, who are interested in high finance, don’t really know sh!t about the respective businesses.
harish 55 Wrote: ------------------------------------------------------- > I am currently working on systems and a CFA Level > 3 candidate. I am interested in joining the > private equity industry. Could somebody please let > me know the following > (i) Skill sets required- Educational > qualifications & other requirements > (ii) Companies to apply for > (iii) Questions asked in the interview > I am bit desperate to change my current job and > any help, suggestions would be highly appreciated. Dude, if you can’t figure this stuff out on your own, I don’t think you have a chance. Your Associate or VP is going to ask you much more arcane questions and expect you to figure out the answers on your own. With respect to your questions… 1.) Google Search, duh. 2.) Google, Local Library Database, The Deal mag/website, hmmm, duh. 3.) Industry specific questions, experience questions, why PE, why now, why us, what do you bring to the table, can you model… super, duh. Not meaning to be a jerk, but you want to be in an industry full of highly intelligent go getters who figure out tough problems, in some cases, completely on their own and you seem stumped on ridiculously easy to find information. Your a level three candidate, right, you must be somewhat intelligent, put some of what you learned in the industry analysis readings to work or something.
i really don’t have much else to contribute beyond what Danteshek, Gecco, rohufish, topher and Gouman have already stated…it’s all variations on the same theme. if “CFA Level 3 candidate” is the most noteworthy accomplishment you have either professionally or academically, i would say that getting into PE is a real longshot for you. plus, nothing about your post suggests that you’ve put in any real thought or research into figuring out what PE even is. as such, a good starting point, as others have mentioned, is to learn what the industry and the job is all about
These threads amuse me, I probably have more extensive and relevant work experience than you and I still no that getting into something completely different like banking, vc or pe is a long shot. smh…
I’m curious Numi, what was the single most defining job accomplishment that helped you move from ER to PE?
^ probably the work experience itself
Of course, but I’m just curious about what was the job success he did that helped him get recognized by PE and granted an interview.
i think the job market is very unfair in a way - they look for ‘markers’ and ‘flags’ on your resume that convey info about you. if you check those boxes, you get called, if not, you are totally dependent on connections and networking. there’s probably dozens of people on this board who get finance better than a lot of morons currently in the biz and busy running down hedge funds, investment banks, fannie mae’s etc of this world, or doing shatty PE deals just because ‘i got committed capital and need to put it to work this year or i don’t get my mgmt fee’. but the nature of the beast is that these idiots somehow got to those chairs and occupy them right now. if you’re on the outside, and ‘own’ finance - be patient, network, and you’ll eventually get your break too. when you do, bring honor and respect to the biz. if you’re on the outside, and just want in for the money, etc. i hope for the biz’s sake you never get a look in, as harsh as it may sound, because there are others who deserve it more than you. ok, done w my rant
I don’t know about numi’s situation, but the industry team you are on could be a big factor. At the “underling” level, equity research is mostly about executing assigned tasks (modeling, writing, helping buyside clients, etc.). You can definitely screw up, but it’s hard to really “accomplish” anything like you would be able to at the analyst level where you are actually selecting stocks. Good references, top bonus, and, as mentioned, industry coverage, are the major differentiating factors.
pacmandefense Wrote: ------------------------------------------------------- > why wouldnt his CPA equivalent and L3 candidacy be > reflective of deep financial analysis skills? PE needs industry analysis skills, operating expertise, etc. and its interaction with financial analysis. i just don’t see this gentleman, given his level of maturity, being able to engage at the C-level. sorry, but some guys need to do their time before they are ready.
sternwolf Wrote: ------------------------------------------------------- > I’m curious Numi, what was the single most > defining job accomplishment that helped you move > from ER to PE? interesting question. i don’t know that there was any one single defining project of my jobs that helped me stand out. however, i did try to illustrate a number of parallels between my experience in research and why it would be helpful for private equity, such as my modeling and analytical skills, writing abilities, my experience with looking at businesses from the perspective of an investor, and my interpersonal traits (i.e. speaking with clients, management teams, and so forth). mostly, however, i think the most important thing that helped me with my interviews was a certain level of thoughtfulness and preparation when it came to PE interviews. i know that when it came to technical questions relating to transactions, there was no way i would know more than someone who had two years of experience in M&A or leveraged finance, and this was something that i wasn’t even afraid of admitting in an interview. looking back on things, i know that people always tell you not to admit faults or weaknesses in an interview, but it was a foregone conclusion that i didn’t have transaction experience the way that banking analysts had, and i think the mere recognition of my potential shortcomings helped capture a sense of humility on my part. that being said, while i didn’t have the relevant banking experience, i showed them that i was the kind of person that would do whatever it takes to get the job done. i spent weeks trying to learn about LBO’s and reading whatever material i could get my hands on, as well as talking to my friends who worked in banking or PE, so when it actually came down to the interviews, i had some semblance of an idea as to what i was getting myself into. maybe i didn’t know that much overall, but seeing as how i already conceded to my interviewers that i might not be as knowledgeable about as someone that came out of a leveraged finance banking group, it’s not as if the interviewer would ever call me out on acting like i knew more than i really did. above and beyond that, i think that the people interviewing me were looking for a particular “package” of experiences and skills. i think there were certain things on my resume from high school to the present day that demonstrated that i’m the kind of person who has the drive and determination to give my best effort on things i care about. and because of the results i achieved in the academic or professional setting, i think some firms were able to look beyond the typical investment banking background and consider someone like myself as a candidate for the job. in general, i found that PE firms actually care less about technical knowledge than you’d think – obviously you’ll be screened for this right off the bat, but even once you get into second or third round interviews, they just want to see that you have the right personality traits for the job. i think they generally just want to find someone who’s insightful, personable, and who has the horsepower and work ethic to perform a task well. these are the kinds of things that almost any employer in any industry would look for, and even though i didn’t have “investment banking” on my resume, there were a number of other things i was able to point to in order to show that i could do the job if they gave me the chance.
I agree with the above posts that these questions are plain silly and show no real aptitude for a career in PE, however, jobs in IB/PE firms are not ridiculous to come by if you have a decent background. One key attribute that a lot of people miss is that being good looking helps 
I get the impression that a lot of people are fairly intelligent and have a decent background, however, I’m thinking that the majority of the analyst forum posters may look like extras on Lord of the rings. No offence intended here…
I’m pretty sure there’s more to life than being really, really, ridiculously good looking. And I plan on finding out what that is.