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The 4 Personalities in Private Equity
Here is an extract of a great article that I found on efinancialcareers - for once it felt quite spot on, and I've added a little bit based on my own experience. It relates to the 4 kind of personalities you tend to find in private equity funds (in Europe, mainly, but applies to most countries!).
1. The Ivy Leaguer
Initially flattered by your call (US-educated people appreciate entrepreneurialism more than Europeans), he will quietly stopwatch your elevator pitch to exactly 120 seconds. Don’t waste his time. Be ready to give him a stock pick or outline your favourite unloved sub-sector for buyouts.
Close out with some kind of reference to sport. You’ll discover at interview that he’s athletic, tall, and tanned. Clearly if you are too, it will help.
2. The Autistic Geek
Preparing your CV for Private Equity
If your ambition is to work for a private equity fund, not only must your resume go past the headhunters, which are notoriously picky about who they send for PE interviews, but it needs to get you a foot in the door of PE funds. Tailoiring your CV is a critical part of the application process, because it will be used in the numerous steps that will follow if you are invited for a first round interview. In the UK, Private Equity funds will typically look for the following qualities in your CV :
>> Business Judgement
>> Strategic perspective and understanding
>> Interest for investing
>> Raw intelligence
>> Analytical skills
>> Knowledge of finance, accounting and modelling
>> Strong communication and social skills
>> Existence of network or potential network, and "pedigree"
Should I do an MBA? MBA explained for dummies
What is an MBA?
An MBA is a Master of Business Administration, typically a 2 year degree, but some schools have 1 year MBAs (Insead and IMD). You'll learn mostly about management and leadership, although you can specialise and have a major in finance, marketing, strategy, etc.
You will get taught in small groups of 30-40 people through a combination of case studies and lectures. There are also significant "off campus" learning opportunities such as club activities, trips to companies, competitions, etc, and MANY social events for you to network with fellow students and potential employers.
Goldman Sachs Interview: as a student, how to I make it to Goldman Sachs?
One of the most common questions that gets asked here: "How do I make it into Goldman Sachs?" Goldman Sachs is consistently ranked at the top of the investment banking league tables, attracts top talent, and pays the highest bonuses, so no wonder students and bankers all want to get a job at the prestigious investment banking firm.
Here are the tips we gathered from a "Goldmanite", who spent 16 years at the firm:
There is no magic list of courses, study, deals or anything else that will guarantee you to get hired by Goldman Sachs. Let me explain how this works:
1. Work like crazy to get into a great university.
More advice on how to jump into hedge funds
The best hedge funds managers such as GLG (now part of Man), Brewan Howard, Och Ziff, Citadel, etc. earn sums that would make any investment banker drool. Unfortunately, for the very large part, they don't post any job offerings. How, then, can you get a job at a hedge fund?
The best suggestions are network, always have an elevator pitch ready (why you), and always have at least 2 investment ideas ready.
When hedge funds are recruiting, they will typically ask their collegues to ask their friends if they are interested and not go through headhunters. You should therefore do everything you can to put yourself on the radar screen:
> Reach out to all your friends in hedge funds to let them know you'd like to make the move
> Attend industry events
Its appraisal time! How do bankers get evaluated?
A question that often comes from students and investment bankers to me is "how do I do to be ranked in the top tier?", and also "what happpens during the year-end investment banking appraisal that will decide my bonus and promotion"
So let's plunge into the mysterious depths of the year-end appraisal process. At most investment banks, the process goes like this:
Are boutiques better than Bulge Brackets?
After only a year at BigBank, you receive a mysterious phone call from your headhunter. He found a unique and challenging opportunity for people of your caliber. If you accept this offer at Little Boutique, not only will the hours be much better, but you'll get to work directly with the MDs and get direct financial lessons from the big guns! Your salary will increase, and you'll get the chance to be part of an growing, entrepreneurial environment that promises your a better learning experience and no more associates. You are finally recognised for your own abilities, you think to yourself, and you'll finally get to show the world what a superstar analyst you really are with more sleep.
How to answer "why investment banking"
For students and graduates, besides the technical questions,CVs, questions and brainteasers, this is a question you WILL get during asked at interviews: "Why investment banking?"
There is no engineered answer for this, but, based on our experience of interviewing candidates, the best answers are:
1) The learning curve in investment banking is very steep and you want to learn a lot and take on new challenges
The Investment Banking Analysts Rules
Now that you have gone through the investment banking interviews and signed your contract with BigBank and that you have permanently infiltrated the ranks of the investment bank full time staff, take a few minutes to consider the following advice based on our combined decade of investment banking wisdom.
Rule #1: Do not be a smartass
Stepping Stones to Private Equity
If you are working in Investment Banking, you'll often hear about private equity, and bankers wanting to move to private equity. The most common attractions of working in private equity are usually as follows:
1) The job is generally considered more interesting than investment banking.
