Can you go straight into private equity?

Private equity firms do hire undergraduates. However, there are usually only a handful of undergraduates from top schools that recruit directly into PE firms. Usually with previous experience in investment banking or private equity. Boutique firms with minimal recruiting structure can accept undergraduates too.

Can you get into private equity without a degree?

Candidates should have a bachelor’s degree in a major like finance, accounting, statistics, mathematics, or economics. Private equity firms do not usually hire straight out of college or business school unless the student has previous significant private equity internships or work experience.

Is private equity better than banking?

In private equity firms, associates have more impact on sales and trading as they are closer in taking action and investing; whereas the investment bankers have less impact on the sales and trading of the business. In a sense, private equity associates enjoy better work-life balance than any investment banker.

What are the hours like in private equity?

In private equity, you’ll work hard, but the hours are not nearly as bad. Generally the lifestyle is comparable to banking when there is an active deal, but otherwise much more relaxed. You usually get into the office around 9am and may leave between 7pm-9pm depending on what you’re working on.

Do you need a degree to get into private equity?

Do you travel a lot in private equity?

Management consultants generally work between 40 and 60 hours per week. However, this figure does not include travel, of which most consultants do a lot during the first few years. Private equity associates get to the office around 9 a.m. or a little before and, depending on workload, leave between 6 p.m. to 9 p.m.

Why does private equity pay so much?

By contrast, private equity firms make money by exiting their investments. They try to sell the companies at a much higher price than what they paid for them. The profits are then divided up based on a distribution waterfall. That’s why PE firms pay such high salaries to associates and investment staff.

Why is it so hard to break into private equity?

One reason private equity is so challenging to break into is these jobs are in such high demand; recent graduates compete with seasoned investment bankers and stockbrokers for precious few job openings in private equity.

What is the best way to get into private equity?

Get to know the headhunters who recruit for private equity. There aren’t many of them. Get some experience. Pursue every internship and work in finance for two or three years before trying. Be patient. The jobs are few and the interview process is lengthy. People in private equity would argue that their goal is noble.

How long does it take to get a job in private equity?

The interview process takes three to six months and includes a half-dozen or more steps. That’s another good reason to start your career elsewhere before approaching private equity firms. You’ll need an income for the next year to 18 months even if you make the candidate shortlist.

Why don’t private equity firms hire college students?

With so few jobs available at any one time, they have no need for them. Additionally, private equity firms maintain little interest in bringing on board inexperienced college graduates, no matter how bright, and training them to be private equity pros. Once again, this is a function of supply and demand.