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# Private Equity and Blackstone

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Manager
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16 Apr 2007, 14:10
Which MBA programs are good links to Private Equity firms like Blackstone, Blackrock, and Carlyle?

Is it the school itself (like HBS, GSB (Chicago & Stanford)) or is it the school's strength (CBS-Finance) that attracts PE firms? I looked at Ross and no mention of any PE firms in recruiter info.

Any help?
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Re: Private Equity and Blackstone [#permalink]

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16 Apr 2007, 14:24
Most people who get in to PE usually have prior PE or at least IB experience. Most people who have prior PE experience usually end up at HBS or Stanford.
Naturally, this leads to self-selection give that the number of associates hired by PEs are not too many.

I don't work in PE/IB. So my opinion is based on what I have read or heard from various sources.

justincase49 wrote:
Which MBA programs are good links to Private Equity firms like Blackstone, Blackrock, and Carlyle?

Is it the school itself (like HBS, GSB (Chicago & Stanford)) or is it the school's strength (CBS-Finance) that attracts PE firms? I looked at Ross and no mention of any PE firms in recruiter info.

Any help?
Manager
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Re: Private Equity and Blackstone [#permalink]

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16 Apr 2007, 14:39
lhotseface wrote:
Most people who get in to PE usually have prior PE or at least IB experience. Most people who have prior PE experience usually end up at HBS or Stanford.
Naturally, this leads to self-selection give that the number of associates hired by PEs are not too many.

I don't work in PE/IB. So my opinion is based on what I have read or heard from various sources.

This is correct. Very few HF and PE firms hire associates that have no prior experience. Many people, especially career switchers, have misconceptions that if you get MBA from XYZ schools that you will be able to be hired. They also hire many without MBA degrees but with prior IB, IM , equity research experience.
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16 Apr 2007, 15:18
So if you need prior PE experience to get into a PE firm, where do you get PE experience to begin with!?
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16 Apr 2007, 16:10
justincase49 wrote:
So if you need prior PE experience to get into a PE firm, where do you get PE experience to begin with!?

No... generally you need IB experience or P/L management "line" experience.
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16 Apr 2007, 16:10
Out of an ivy as an analyst.

justincase49 wrote:
So if you need prior PE experience to get into a PE firm, where do you get PE experience to begin with!?
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16 Apr 2007, 16:14
So if you don't already have IB or PE experience prior to getting an MBA, is it realistically possible to work in IB for 2-3 years and then lateral over to a PE firm?
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16 Apr 2007, 16:24
You can also get cherry picked from a MC firm too right? I they recruit out of Mckinsey I heard...

So the path would be MBA>McKinsey>Blackstone? (if you dont do IB)
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16 Apr 2007, 16:39
justincase49 wrote:
You can also get cherry picked from a MC firm too right? I they recruit out of Mckinsey I heard...

So the path would be MBA>McKinsey>Blackstone? (if you dont do IB)

depends on what type of consulting projects have you done at McK...
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16 Apr 2007, 17:12
flapjack wrote:
So if you don't already have IB or PE experience prior to getting an MBA, is it realistically possible to work in IB for 2-3 years and then lateral over to a PE firm?

That's a fairly realistic route assuming you've made the necessary contacts during your IB tenure. However, the top PE firms hire very infrequently, so you might have to set your sights on more middle-market firms rather than putting all your hopes on a Blackstone or TPG.
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16 Apr 2007, 17:14
justincase49 wrote:
You can also get cherry picked from a MC firm too right? I they recruit out of Mckinsey I heard...

So the path would be MBA>McKinsey>Blackstone? (if you dont do IB)

depends on what type of consulting projects have you done at McK...

I've heard of a good number of folks getting hired out of Bain's PE business.
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16 Apr 2007, 17:20
eazyb81 wrote:
flapjack wrote:
So if you don't already have IB or PE experience prior to getting an MBA, is it realistically possible to work in IB for 2-3 years and then lateral over to a PE firm?

That's a fairly realistic route assuming you've made the necessary contacts during your IB tenure. However, the top PE firms hire very infrequently, so you might have to set your sights on more middle-market firms rather than putting all your hopes on a Blackstone or TPG.

Most of the guys I know in PE took this route. 2 years at IB, then PE.
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16 Apr 2007, 17:57
Rhyme, you mean that they worked at the IB for two years after getting the MBA and then moved to PE, right?
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17 Apr 2007, 03:09
Needn't have an MBA flapjack (though for most people here the MBA gets the IB part) - experience in the market is what they are after.
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go check out Silverlake and KKR websites [#permalink]

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18 Apr 2007, 01:51
if you want to find out what sort of poeple these PE firms hire, go take a look at their sites. It gives you an idea of what sort of candidates these firms look for. One thing that I've noticed is that most come into the firm with IB background. The usual bulge bracket IB firms out there are usually a good breeding ground for potential PE opportunities. It also helps if you have a particular industry experience say in technology as there is always some form of industry consolidation going on in Silicon Valley.
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Re: go check out Silverlake and KKR websites [#permalink]

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26 Apr 2007, 09:06
mlchang616 wrote:
if you want to find out what sort of poeple these PE firms hire, go take a look at their sites. It gives you an idea of what sort of candidates these firms look for. One thing that I've noticed is that most come into the firm with IB background. The usual bulge bracket IB firms out there are usually a good breeding ground for potential PE opportunities. It also helps if you have a particular industry experience say in technology as there is always some form of industry consolidation going on in Silicon Valley.

I did a lot of that last week. My firm is marketing to PE funds, and I was looking for certain backgrounds in each company. While most do come from IB backgrounds, there are a lot of firms that are very operations oriented. Some even have entire groups of people with corporate/industry/consulting experience. So it's possible, just a lot harder.
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26 Apr 2007, 11:24
flapjack wrote:
Rhyme, you mean that they worked at the IB for two years after getting the MBA and then moved to PE, right?

Either before or after - most I know did 2 years IB pre MBA, moved into PE pre MBA, and are now pursuing an MBA.
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02 May 2007, 13:07
My roommate from when I worked at a BB for the summer worked at UBS then decided to go into PE before getting an MBA. I lucked up, the company I work for is a portfolio that was recently merged into a PE fund. There are many ways to get your foot in the door in PE. The conventional route is IB/MC for a few years and then coming in as a grunt. Its not as easy to advance in PE firms as it is in IB/MC because there is a pyramid organizational strucuture that is more heavily weighted towards the top. The route I recommend is going to an I-Bank and working your way up to VP/SVP, or junior MD, and then hopping to PE as a principal/MD
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02 May 2007, 13:27
chillonamill wrote:
My roommate from when I worked at a BB for the summer worked at UBS then decided to go into PE before getting an MBA. I lucked up, the company I work for is a portfolio that was recently merged into a PE fund. There are many ways to get your foot in the door in PE. The conventional route is IB/MC for a few years and then coming in as a grunt. Its not as easy to advance in PE firms as it is in IB/MC because there is a pyramid organizational strucuture that is more heavily weighted towards the top. The route I recommend is going to an I-Bank and working your way up to VP/SVP, or junior MD, and then hopping to PE as a principal/MD

I'm 22, targeting B-school in 4 years, 26. What's the timeline for what you're talking about along with Compensation for the ending position at the IB and the starting position at a PE firm.

If the $$isn't significantly different, would it make more sense just to stay at the IB until MD? _________________ There are three things in life: Price, Quality, and Speed. You only get two out of the three. Manager Joined: 27 Oct 2006 Posts: 56 Followers: 0 Kudos [?]: 0 [0], given: 0 ### Show Tags 02 May 2007, 17:14 justincase49 wrote: chillonamill wrote: My roommate from when I worked at a BB for the summer worked at UBS then decided to go into PE before getting an MBA. I lucked up, the company I work for is a portfolio that was recently merged into a PE fund. There are many ways to get your foot in the door in PE. The conventional route is IB/MC for a few years and then coming in as a grunt. Its not as easy to advance in PE firms as it is in IB/MC because there is a pyramid organizational strucuture that is more heavily weighted towards the top. The route I recommend is going to an I-Bank and working your way up to VP/SVP, or junior MD, and then hopping to PE as a principal/MD I'm 22, targeting B-school in 4 years, 26. What's the timeline for what you're talking about along with Compensation for the ending position at the IB and the starting position at a PE firm. If the$$\$ isn't significantly different, would it make more sense just to stay at the IB until MD?

The range and time frame varies quite a bit. Here are the best estimates I could find of comp.

http://www.bankersball.com/2007/04/05/2006-comp-figures-ib-pe/

Also, from my personal experience, the low end of PE is not where its at. You want to come into this profession at the high end.
02 May 2007, 17:14

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