Entry-level Positions for Aspiring Managing Partners
Entry-level private equity roles for undergraduates are "extremely rare," with the most common route involving two years in investment banking at a "good investment bank" followed by recruitment into a private equity associate position. Private equity firms prefer candidates with prior experience, as Kazem explains, because they "don't have time to teach you all the stuff" learned at the analyst level in investment banking.
Investment Banking, Private Equity, Financial Modeling, Professional Development, Career Paths
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
Majors
Industries
Job Functions
Traits
Kazem Harfouche
Managing Partner
Cedar Crest Capital
Arizona State University (ASU) - W. P. Carey
Finance
Finance (Banking, Fintech, Investing)
Finance
Video Highlights
1. Investment banking is the most common entry path into private equity.
2. Private equity firms rarely hire undergraduate students directly; they prefer candidates with 2 years of experience in investment banking.
3. The role of an investment banking analyst provides valuable training in financial modeling and professional skills, which are essential for success in private equity.
Transcript
What entry-level positions are there in this field that an undergraduate college student might consider?
The private equity industry does not typically have undergraduate-level positions. Some firms do, but they are very rare.
It is extremely rare to start as a first-year analyst right out of college. The most common path is to work in investment banking for two years after undergrad, preferably at a reputable firm with a strong group.
During your first year in investment banking, private equity firms will begin recruiting you. You would then join private equity as an associate.
The private equity world doesn't usually have analyst levels because they want you to have already learned how to build financial models and develop professional skills. They don't have the time to teach you everything you should have learned as an investment banking analyst. That's the typical path to getting into private equity.
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