Transitioning into working as an investment professional in a PE fund is no easy feat. Private Equity funds are extremely adept at identifying candidates who will be tough enough to withstand technically challenging environments whilst being able to keep a cool head and be engaging interpersonally.
Interview processes can be grueling and lengthy, so it is wise to be well prepared long before you have the first round booked in.
I've put together a couple of tips which will help you prepare for most private equity processes.
- Financial Modelling. Most PE houses will ask you to complete a financial modelling case study. Depending on the fund's strategy, you might be asked to build a financial model from scratch or you may be given a partially completed model to finish. These are almost always timed, so practicing under pressure is advised. There are many resources online, like Corporate Finance Institute and Wall Street Prep. Additionally, if you have any friends who are already in Private Equity - ask if they can give you a couple of tips.
- Research the fund. You will be asked your thoughts on the fund, as good decision making skills and strong instincts are non negotiable traits of PE investors. Sources like Pitchbook and Crunchbase are good places for general information. Look at the fund's portfolio companies and interrogate why you think the fund has invested in them.
- Have strong convictions. You need to be very passionate about the fund's specific strategy and sector, as the fund will need to be convinced that you are dedicated and serious enough about investing to take a chance on you without a track record at another fund. Authenticity and true enthusiasm go a long way.
- Be thick skinned. You will most likely not get the first job you interview for. It is a notoriously competitive industry. See each process as a learning opportunity and a chance to refine your interviewing skills.
- Prepare more than you think you need to. Try and identify the gaps in your own experience and work on them long before you have an interview. There are several ways into PE, so chat with a headhunter or a friend already in the industry to identify where you might be able to brush up your skills.
