Private Equity and Blackstone

Question

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?

lhotseface · Answer

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.

cbreeze · Answer

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.

justincase49 · Answer

So if you need prior PE experience to get into a PE firm, where do you get PE experience to begin with!?

rhyme · Answer

No... generally you need IB experience or P/L management "line" experience.

lhotseface · Answer

Out of an ivy as an analyst.

flapjack · Answer

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?

justincase49 · Answer

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)

haddy74 · Answer

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

eazyb81 · Answer

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.

dukes · Answer

I've heard of a good number of folks getting hired out of Bain's PE business.

rhyme · Answer

Most of the guys I know in PE took this route. 2 years at IB, then PE.

flapjack · Answer

Rhyme, you mean that they worked at the IB for two years after getting the MBA and then moved to PE, right?

3underscore · Answer

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.

mlchang616 · Answer

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.

09App · Answer

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.

rhyme · Answer

Either before or after - most I know did 2 years IB pre MBA, moved into PE pre MBA, and are now pursuing an MBA.

chillonamill · Answer

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

justincase49 · Answer

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?

chillonamill · Answer

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

Private Equity and Blackstone

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