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eva
Student
1
Question
Asked
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In order to get into private equity who would I need to build relationships with to get my position?
I've been looking into pursuing a career in private equity and Ive noticed that its a difficult field to get into. Many people go into this career without recognizing that it is a popular field and most likely wont get a job. In order for me to get this position I need to build relationship with people in higher positions to recommend me. So my question is how should I do that?
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2 answers
Doc Frick
Career Coach and Mentor
1870
Answers
California, CA
Updated
Doc’s Answer
Eva a PRIVATE EQUITY CAREER typically follows a hierarchical path, starting with entry-level roles like Analyst/Junior Associate, then progressing to Senior Associate, Vice President and eventually Managing Director before becoming a Partner. Landing a career in private equity is very difficult because there are few jobs on the market in this profession and so it can be very competitive. Coming into private equity with no experience is impossible, so finding an internship or having previous experience in a related field is highly recommended. Private equity professionals can advance fast within a firm and typically start as junior associates or analysts.
• ANALYST — Employees in entry-level positions do not get to make deals or work independently through all process steps; instead, they are assigned more specific tasks such as reviewing data. Some required skills include financial modeling and the ability to work with a large amount of data.
• SENIOR ASSOCIATE — The main difference between a junior analyst and a senior analyst is independence. Senior associates spend their time seeing a deal through from start to finish. In addition, generating ideas is a new job responsibility as you progress from junior to senior associate, allowing you to take on more responsibility in decisions.
• VICE PRESIDENT — Vice presidents have more of a communications role than junior positions. VP's deal less with data sorting and more with client relations and presentations. Technical skills matter less than negotiation abilities, and they also are responsible for in-house management and mentorship of associates.
• MANAGING DIRECTOR — One step away from Partner, Directors are in charge of fundraising as well as facilitating deals. Most of the execution is delegated to the previously mentioned team members while the Director handles the final negotiations and major company decisions.
• PARTNER — Partners focus mainly on company representation, funding, and client relationships. This job has no technical component, but negotiation skills are required to present and convince Limited Partners to provide funding. Partners are also required to invest a portion of their wealth into the company to invest in their team.
PRIVATE EQUITY CAREER
Private equity firms raise capital from outside investors, called Limited Partners (LP), and then use this capital to buy companies, operate and improve them, and then sell them to realize a return on their investment. The industry is called “private” equity because the companies that private equity firms invest in are private initially, or become private as a result of the investment. The job is part fundraising, part operational management, and part investing. Private equity is a highly competitive and sought-after field. private equity firms are small, tight-knit, and full of extremely smart and highly motivated people. As a starting point, the right career background is critical.
IS PRIVATE EQUITY RIGHT FOR YOU
As previously emphasized, starting a career in private equity is competitive and typically requires relevant experience and a robust set of skills. Private equity professionals work long hours and are highly competitive and must think critically, and have a passion for financial investing deals, not just following the markets. Obtaining an internship within a private equity firm or starting off in a related career path like investment banking or management consulting would be beneficial in exposing yourself to the environment. Private equity firms are typically looking for individuals with assertive, independent, and analytical qualities.
EDUCATIONAL REQUIREMENTS
While not always mandatory, a strong educational foundation is highly valued in private equity. Many successful professionals have advanced degrees like an MBA, often from top business schools, specializing in finance or private equity. A bachelor's degree in a quantitative field like finance, accounting, or economics is a common starting point.
• ANALYST — Employees in entry-level positions do not get to make deals or work independently through all process steps; instead, they are assigned more specific tasks such as reviewing data. Some required skills include financial modeling and the ability to work with a large amount of data.
• SENIOR ASSOCIATE — The main difference between a junior analyst and a senior analyst is independence. Senior associates spend their time seeing a deal through from start to finish. In addition, generating ideas is a new job responsibility as you progress from junior to senior associate, allowing you to take on more responsibility in decisions.
• VICE PRESIDENT — Vice presidents have more of a communications role than junior positions. VP's deal less with data sorting and more with client relations and presentations. Technical skills matter less than negotiation abilities, and they also are responsible for in-house management and mentorship of associates.
• MANAGING DIRECTOR — One step away from Partner, Directors are in charge of fundraising as well as facilitating deals. Most of the execution is delegated to the previously mentioned team members while the Director handles the final negotiations and major company decisions.
• PARTNER — Partners focus mainly on company representation, funding, and client relationships. This job has no technical component, but negotiation skills are required to present and convince Limited Partners to provide funding. Partners are also required to invest a portion of their wealth into the company to invest in their team.
PRIVATE EQUITY CAREER
Private equity firms raise capital from outside investors, called Limited Partners (LP), and then use this capital to buy companies, operate and improve them, and then sell them to realize a return on their investment. The industry is called “private” equity because the companies that private equity firms invest in are private initially, or become private as a result of the investment. The job is part fundraising, part operational management, and part investing. Private equity is a highly competitive and sought-after field. private equity firms are small, tight-knit, and full of extremely smart and highly motivated people. As a starting point, the right career background is critical.
IS PRIVATE EQUITY RIGHT FOR YOU
As previously emphasized, starting a career in private equity is competitive and typically requires relevant experience and a robust set of skills. Private equity professionals work long hours and are highly competitive and must think critically, and have a passion for financial investing deals, not just following the markets. Obtaining an internship within a private equity firm or starting off in a related career path like investment banking or management consulting would be beneficial in exposing yourself to the environment. Private equity firms are typically looking for individuals with assertive, independent, and analytical qualities.
EDUCATIONAL REQUIREMENTS
While not always mandatory, a strong educational foundation is highly valued in private equity. Many successful professionals have advanced degrees like an MBA, often from top business schools, specializing in finance or private equity. A bachelor's degree in a quantitative field like finance, accounting, or economics is a common starting point.
Annamalai Perianan
Consultant
7
Answers
Hoffman Estates, Illinois
Updated
Annamalai’s Answer
Breaking into private equity early requires a strong foundation in finance, typically starting with a role in investment banking, management consulting, or corporate M&A. PE firms value skills in financial modeling, valuation, and deal analysis, so building those early through internships, finance courses, or self-study is key. While most enter PE after 1–2 years in Investment Banking, some firms offer pre-MBA analyst roles to top undergrads. Networking is critical: connect with alumni, attend industry events, and seek informational interviews. To stand out, be able to explain why you're interested in PE, understand recent deals, and prepare thoroughly for technical interviews. It's a hard career but very fulfilling. Be ready to work and be curious while building personable relationships.