Private equity is a popular career destination for many finance professionals, especially those with investment banking experience. However, it is possible to break into private equity without having an investment banking background. This article explores alternative paths and strategies for entering the private equity industry without traditional investment banking experience.
Consulting and corporate development provide transferable skills
Many private equity firms recruit candidates from consulting and corporate development roles at large companies. These roles develop critical thinking, financial modeling, valuation, and deal execution skills that translate well to private equity investing. Highlighting this transferable skillset can help non-bankers demonstrate their fit despite lacking direct deal experience early in their careers.
Smaller PE firms are more open to non-traditional backgrounds
While mega PE funds like KKR and Blackstone heavily recruit from elite investment banks, smaller and middle-market PE shops are more open to candidates without a banking background. Targeting these smaller firms and articulating why your past experience is relevant can get your foot in the door.
Networking is even more critical without banking experience
Without the standardized recruiting pipeline of investment banking, networking becomes even more crucial for breaking into private equity. Attend industry events, reach out to alumni at PE firms, connect with firm representatives on LinkedIn, and leverage your existing professional network to make connections at target PE funds.
Consider starting in a more junior role
If struggling to land PE associate roles, consider targeting more junior positions like analyst or investment associate roles, which generally have less rigid prerequisites. Build a track record of success in these roles and leverage that experience to make the transition into a traditional private equity investing role down the line.
Breaking into private equity without investment banking is challenging but very possible through thoughtful positioning and leveraging transferable skills from consulting, corporate development, and other professional roles. Networking and targeting smaller PE firms open to non-traditional candidates are key strategies to landing that first opportunity.