What's driving demand for STEM talent?
As private markets evolve, technical expertise is becoming an increasingly valuable part of the investment skill set. Lea Nusser from our Munich office explores what’s driving demand for STEM backgrounds and the value these candidates can bring to investment teams.
To support this growing talent pool, PER has also created a dedicated network for STEM graduates interested in careers in private markets.
To support this growing talent pool, PER has also created a dedicated network for STEM graduates interested in careers in private markets.
Lea's profile
A shift beyond the
traditional route
Private equity has long recruited almost exclusively from finance and economics backgrounds, usually funnelling people in through a couple of years in investment banking or consulting. That's starting to change. More firms are bringing in people with engineering, computer science, and data science degrees.
The shift is driven by how returns get made now. With cheap debt and rising valuations no longer doing the heavy lifting, firms create value mainly by improving the companies they own by fixing pricing, streamlining operations, and upgrading technology. Diligence has followed suit: evaluating a target often means assessing its software, data, or algorithms, not just its financials, which calls for people who can look under the hood and stay hands-on after close.
This is particularly evident in sectors where technical expertise can provide a deeper understanding of the underlying business, for example:
The shift is driven by how returns get made now. With cheap debt and rising valuations no longer doing the heavy lifting, firms create value mainly by improving the companies they own by fixing pricing, streamlining operations, and upgrading technology. Diligence has followed suit: evaluating a target often means assessing its software, data, or algorithms, not just its financials, which calls for people who can look under the hood and stay hands-on after close.
This is particularly evident in sectors where technical expertise can provide a deeper understanding of the underlying business, for example:
- Healthcare and life sciences: clinical data, regulatory pathways, R&D pipelines
- Industrials, aviation, and energy: engineering fluency in the underlying physical systems
- Deep tech: the ability to read code and assess technical architecture
This reflects where capital is going too, as funds lean further into software, data-driven businesses, and blended private credit strategies.
The value of a
different perspective
Therefore, a more diverse team tends to make better investment decisions, and STEM (Science, Technology, Engineering and Mathematics) candidates can bring a different perspective to assessing an investment, asking different questions and identifying risks or opportunities that might otherwise be overlooked, on top of being able to speak the same language as founders and management teams.
None of this replaces the traditional skill set one must bring; financial modelling and deal fundamentals are still expected.
The takeaway being: a STEM degree alone doesn't get someone into private equity. What stands out now is technical depth paired with commercial judgment and not treating it as a separate skill on the side.
None of this replaces the traditional skill set one must bring; financial modelling and deal fundamentals are still expected.
The takeaway being: a STEM degree alone doesn't get someone into private equity. What stands out now is technical depth paired with commercial judgment and not treating it as a separate skill on the side.
Building a network for
STEM talent
PER has created a network to provide STEM graduates with career guidance into private markets. If this resonates with you and reflects your background, sign up to the network and reach out to Lea Nusser.
Join the network