Gail McManus, Managing Director and Founder, recently spoke to eFinancialCareers about how to get a job in private equity and what skills are required.
Private equity jobs are highly coveted in finance due to their lucrative compensation and wide opportunities. The competition for these positions is intense, reflecting their desirability.
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"Private equity funds are looking for Action Man or Action Woman. You need to make things happen, to be ultra-competitive, not let things stand in your way. It’s all about winning the deal."
How do you get a job in private equity?
Historically, private equity firms recruited junior talent from investment banks due to the extensive training in financial modelling, company pricing, and Mergers & Acquisitions provided in banking. Recently, firms have started their own training programs for graduates, although these positions are highly competitive.
Despite these new avenues, Gail McManus, Managing Director and Founder advises, "Graduates wanting a career in private equity must get into an investment bank and get into the right team." M&A or leveraged finance positions offer the best chance to transition into private equity. Alternatively, experience in transaction services at a Big Four firm or in private equity commercial due diligence at a consultancy can also lead to a private markets career.
What private equity roles are there?
In private equity, the focus is on identifying and acquiring profitable business investments, either through direct negotiations or formal auction processes. The roles in private equity, starting as analysts and associates, involve intense workload and responsibility, including managing financial models and analysing business performance.
Gail notes, "If anyone will be working all weekend, it will be the M&A advisor, not the private equity person. You’re calling the shots, and the advisers are doing the delivery” highlighting the intense nature of M&A roles compared to PE. As professionals advance, they gain more responsibility, with senior roles involving running deals and collaborating with executives of invested firms. "If you work for a big global firm which works on the multibillion complex leveraged buyouts, you’ll look after a tiny part of a big deal. But if you’re working for a mid-market firm with a £1bn fund, then you’ll be more involved."
Which skills do you need for a career in private equity?
Private equity professionals need strong analytical skills, confidence, and persuasive abilities. Gail emphasises, "Private equity professionals need to be confident and persuasive but also hard-edged when it comes to negotiating. They sell with their eyes and mouths and buy with their brains."
Additionally, she underscores the importance of being proactive and competitive: "Private equity funds are looking for Action Man or Action Woman. You need to make things happen, be ultra-competitive, and not let things stand in your way. It’s all about winning the deal." An interest in understanding business operations and the ability to articulate opinions on investment opportunities are crucial traits for success in private equity.
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Gail's profile
