How to Get into Private Equity: 2025 Guide
March 4, 2025
Who Do Private Equity Firms Hire?
Private equity firms typically look for candidates who have a strong academic background and preferably have experience in business strategy, a particular sector, and/or M&A execution. They seek top performers who fit well on a cultural basis or with the team. The hiring process can be long and drawn out, often requiring approval from nearly all mid and senior partners of a fund or regional office before an offer is made.
Get to Know the Headhunters
Private equity is a highly competitive sector with limited entry opportunities – there is not much churn, meaning succession and promotion can be limited. Due to its prestigious nature and substantial remuneration, attractive roles are often highly sought after. However, one important differentiator between investment banking and private equity is that PE firms do not usually have in-house recruitment, they tend to use headhunters.
Large investment banks tend to have a corporate HR function responsible for recruiting the top candidates for their roles, PE firms will generally utilize headhunters to recruit for positions. Typically, each firm will engage an executive recruiter to manage its associate recruitment process. These recruiters or headhunters will be responsible for sourcing candidates, screening resumes, conducting initial interviews, and any background checks needed.
Having a good relationship with each headhunter can therefore be invaluable – they will likely be recruiting for several top firms at once. Being at the top of their list of preferred candidates is a great position to be in.
Private Equity Recruiting: On-Cycle vs. Off-Cycle
Private equity recruiting can be divided into on-cycle and off-cycle processes.
On-cycle recruiting is highly structured and follows a specific timeline, often targeting candidates from investment banking or consulting backgrounds. Off-cycle recruiting, on the other hand, is more flexible and can occur at any time, often focusing on candidates with diverse experiences.
The On-Cycle Recruitment Process
The on-cycle recruitment process primarily targets top associates from bulge bracket and elite boutique banks in an annual intake. However, given the industry’s expansion, private equity firms now also conduct on-cycle recruitment for Summer Analyst (internship) and Full-Time Analyst programs.
Associate positions: The on-cycle recruitment process might start as early as a couple of months after analysts start at bulge bracket or elite boutique banks. This is typically July to October time. Offers can be made for roles eighteen months to two years in the future. The process is often quick, and it’s important to impress the executive recruiter from the very start.
Intern and analyst positions: Interns and analysts are not a priority for recruiters and the process can vary each year. The interview process focuses more on fit questions than on deal experience and case studies. Thus, this tends to make it less exhausting process than for an associate role.
The Off-Cycle Recruitment Process
The off-cycle recruitment process is suited to middle market funds seeking associates, roles outside the US market, and positions where IB experience is not needed. Usually off-cycle recruitment is to fill a current opening at the firm so recruits can begin work immediately. Once an offer is accepted, expect to begin work within weeks rather than waiting for 1.5 to 2 years.
The off-cycle recruitment process will usually start earlier in the year than the on-cycle, typically in January. However, interviews are typically more difficult to convert into an actual offer: firms aren’t pressed to make final decisions and so the process is often more drawn out than the on-cycle recruitment.
The recruiters typically want to assess a candidate’s “fit” for the PE firm and as well as critical thinking ability. Such interviews require more preparation, and you may be asked to prepare a real investment thesis. Headhunters have less influence in off-cycle recruitment, although they can still steer firms towards candidates that they rate highly.
Private Equity Recruiting Timeline
Recruitment timelines always depend on market conditions, but private equity recruitment typically starts in mid-February. As firms seek the best candidates, this can move earlier each year.
Here is an indicative timeline of what a typical on-cycle recruitment process looks like:
September – November: Preparing for applications
- Prepare the first version of your resume for head-hunters, begin refining your story, and schedule headhunter meetings.
- Use the free Financial Edge Private Equity Resume Template and guide to create a successful private equity resume.
- Private equity headhunters receive many resumes – to get noticed, you must initiate contact and follow up politely and persistently.
- Simply emailing your resume is not enough – make sure you’re known to decision-makers at each recruitment firm which can facilitate your journey.
October – December: Meeting Recruiters
- Headhunter meetings will hopefully be scheduled in here.
November – January: Meeting PE Firms
- Attend PE firm information sessions and dinners .
- A few small firms may jump straight to the main recruitment process, participate in interviews, and practice for modeling tests.
January – February: The Recruiting Begins
- The main recruiting cycle. Candidates should expect detailed interviews, which will assess their background, reasons for wanting to join, technical ability, and ability to think on the spot.
Get Some Relevant Experience
Entering Private Equity is incredibly difficult and highly competitive. Private Equity Analysts do not typically come from a private equity background as they have acquired modeling and analytical skills elsewhere that they will then use for their PE career.
Analysts would generally have spent some time in either graduate training programs or full-time analyst training programs in either consulting or investment banking firms. The skills developed during these training programs, as well as commercial acumen, and networking will serve analysts well in their roles within private equity. Few firms recruit university undergraduates for PE roles directly.
Key skills developed in Investment Banking that will help a Private Equity Analyst are:
- Valuation Skills – it is important that analysts have breadth and depth in their understanding of valuation methodologies.
- This will benefit the quality of their judgments and decision-making abilities.
- Industry and Sector-Specific Knowledge – having sector knowledge across multiple sectors and the impact they have on each other is valuable to analysts.
- This will immediately add value to a PE team working on deals.
- Networking and People Skills – PE is highly dependent on networks and relationships.
- PE analysts and associates will likely be client-facing from the start.
- Stamina/Endurance – Private Equity (like all financial services sectors) is a high-intensity, with a heavy focus on deals, and significant technical analysis.
- The ability to keep pace with this demanding work environment is a huge benefit for analysts.
Internships Can Be Your Way In
A Private Equity summer analyst or internship program can give you valuable experience working in a PE firm. Interns in larger firms will often work on monitoring portfolio companies and deal sourcing. An internship can also be a great opportunity to grow your network, which is valuable for a career in PE. Larger PE firms or mega-funds will often run structured internships that will be advertised on their website. Smaller firms are less likely to advertise opportunities, but you can still reach out to them directly to enquire about possible internship opportunities. Networking can be a way to secure an internship in smaller firms.
Prepare for a Hiring Process
Interview processes have been changing over the past few years as the PE market continues to expand. A typical process would usually be:
- A short intro meeting with a senior member of the team.
- Followed by a more in-depth session with some verbal case studies – this may include:
- A paper LBO
- A quick modeling exercise to check your understanding of how PE funds operate.
- Often, funds are now using mini GMAT-style tests (which can come at any stage in the process, but normally early on).
- There would likely be a more formal case study at this point:
- These can be anything from an hour of prep and an hour of presenting to a take-home for the weekend and come in and present scenario.
- This would be followed up by some more high-level chats with partners about longer-term plans, fund fit, etc.
- Finally, there may be some additional meetings with more junior team members to assess team fit and culture.
Preparing for the private equity hiring process involves being ready to answer these types of questions:
- Your cultural fit: understanding the firm’s business model, investment strategy, and key players.
- Learn what PE funds actually do: what is an attractive investment area for them, how do they make money, and what they specifically look for when buying businesses.
- Your story: candidates should be ready to discuss their resume in detail, including their strengths, weaknesses, successes, and failures.
- Your transaction experience: expect detailed discussions around select deals you have worked on in your previous job: normally include both analytical and qualitative information about a deal.
- Your knowledge: funds don’t expect you to be a ready-made investor, but they do want you to have done enough diligence to know why you want to work in Private Equity over Venture Capital or a hedge fund for example.
- Modeling Skills: it’s also important to be well-versed in financial modeling, LBOs, and M&A concepts. LBO modeling exercises are crucial. You might not always be building full models in interviews, but you will be continually tested on the mechanics of an LBO and the broader assumptions you need to begin valuing a business.
Download Financial Edge’s list of PE Interview Questions to help you arrive fully prepared for any Private Equity interview.
How to Know When a Fund is Right for You
Work out what you enjoy in your current role the most. If you like banking but know you want to be in PE long term, then a large fund with a structured associate program is probably a good start. If you want to get straight into working more closely with management teams and are a little jaded by banking, then a smaller fund environment might work. Being in PE is never quite as simple as this though, as some large cap funds have very small sector teams, and you can get huge exposure very early on.
What to Avoid in your PE Interview
- Avoid looking like you haven’t researched the PE Firm: demonstrate that you’ve researched the specific fund and are serious about joining them.
- Avoid embellishments on your CV: if it’s listed, it can be discussed in an interview, so honesty is vital.
- Always listen to the entire question before responding: don’t rush to impress and speak over the interviewer.
Winning a Private Equity Offer: What Matters Most
To be a standout candidate in Private Equity recruitment, emotional intelligence is critical. More than most areas in finance, successful candidates require a mix of EQ and IQ for Private Equity. A large element of the role is relationship building and getting buy-in from management teams. This is particularly critical as you progress.
Intellectual curiosity is the most commonly requested trait Private Equity recruiters see. When asked questions such as ‘why is this business interesting?’ ‘What is the differentiator?’, candidates should have an opinion and don’t sit on the fence. You don’t have to be right; you just need to be able to explain your reasoning rationally and logically. Be willing to listen and adapt your thinking when presented with additional information. Remember it’s a discussion where you need to demonstrate your EQ and well as your IQ!
What to Do If You Don’t Receive an Offer
If you weren’t successful in securing a private equity offer, it’s important to know where things went wrong. Here are a few suggestions of common mishaps in the process
- If you struggled to get enough interviews, focus on expanding and strengthening your networking efforts.
- For candidates who had difficulty with technical questions, identify your areas of weakness, study and practice.
- In cases where you lack sufficient deal experience, consider taking an intermediate role that can help bridge the gap – these roles can help you build the necessary experience and skills that private equity firms seek in their candidates.
Final Thoughts on Breaking into Private Equity
Breaking into PE isn’t about being the smartest person in the room. It’s about having the right background, the right strategy, and executing effectively. If you play your cards right, you might just beat the odds and land your dream job in private equity.
If you want to gain an edge in Private Equity, enroll on the PE Associate online course. If you’re considering a career in the buy-side, this will teach you everything you need to succeed. As well as the technical knowledge you will need, the course also includes expert interviews with a Private Equity Partner and a Private Equity Recruiter, as well a simulation of a Private Equity Interview. Containing over 70 hours of content covering over 60 topics it will stand you in good stead to impress any potential employer.