Many consultants aspire to work in private equity (PE), a sector that offers lucrative compensation, intellectual challenge, and entrepreneurial opportunities. However, breaking into PE is not easy, as the competition is fierce and the expectations are high. If you are a consultant who wants to transition into PE, here are some tips to help you prepare and succeed.
As a consultant, you have some advantages that can make you attractive to PE firms. You have strong analytical, problem-solving, and communication skills, as well as experience in various industries, functions, and projects. You can leverage these skills to demonstrate your ability to identify, evaluate, and execute deals, as well as to support portfolio companies in improving their performance. However, you also need to be aware of your gaps and weaknesses, such as lack of financial modeling, deal sourcing, or operational expertise. You need to address these gaps by taking relevant courses, networking with PE professionals, and seeking exposure to PE-related work within your consulting firm.
Best ways to get started is to identify the skill gaps required for creating your value proposition and then taking proactive steps to get formal training to close those gaps.
Your resume and cover letter are the first impressions you make on PE recruiters, so you need to make them stand out. You need to tailor your resume and cover letter to highlight your relevant skills and achievements for PE, such as financial analysis, due diligence, market research, strategy development, and value creation. You also need to use specific examples and quantifiable results to showcase your impact and potential. Avoid using jargon, acronyms, or generic descriptions that may not resonate with PE firms. Instead, use clear and concise language that showcases your fit and interest for PE.
I've always found it helpful to reach out to contacts in the industry who can give advice so and insights that would help be more relevant and standout against peers when applying for a job.
PE interviews are notoriously rigorous and demanding, as they test your technical, behavioral, and case skills. You need to prepare well for each type of interview and anticipate the questions and scenarios you may face. For technical interviews, you need to master the fundamentals of accounting, finance, valuation, and deal structuring, as well as be able to build and explain financial models. For behavioral interviews, you need to show your motivation, fit, and personality, as well as answer common questions such as why PE, why this firm, and what are your strengths and weaknesses. For case interviews, you need to apply your consulting skills to PE-specific cases, such as investment thesis, market sizing, due diligence, and exit strategy. You also need to practice your presentation and communication skills, as well as your fit with the firm's culture and values.
Networking is a key factor in landing a PE job, as it can help you get referrals, insights, and opportunities. You need to build and maintain your network with PE professionals, alumni, mentors, and peers, as well as with other consultants who have made the transition. You can use various channels, such as LinkedIn, events, cold emails, and informational interviews, to reach out and connect with your contacts. You also need to build your personal brand as a credible and passionate candidate for PE, by showcasing your skills, achievements, and interests on your online profile, portfolio, and social media. You need to be proactive, persistent, and polite in your networking and branding efforts, as they can make a difference in your PE journey.