Among those investment banking professionals who decided to leave investment banking, many find different career paths in the financial services sector. However, opting for private equity jobs in the US seems to be a competent exit option for them.

If you choose to switch to private equity from as an investment banker, this is how you can proceed.

Investment banking to private equity

Private equity is a destination career for many finance graduates. In fact, several professionals chose investment banking as the first step toward the private equity profession. Many decide to join private equity after joining investment banking firms too.

Either way, to make the move to PE, it is recommended to possess graduation from topnotch universities. Also, it is necessary to gain experience by working in corporate finance for their performance is considered in the interview.

Private equity firms look for competitive investment banking professionals who have ratings higher than their peers for a minimum period of 2 years.

Regardless of job satisfaction, compensation, and bonus, many investment bankers consider a career change from sell-side to the buy-side. Before getting into PE, it is recommended to evaluate your strengths and weaknesses.

Many bankers assume that all buy-side opportunities might be similar and better than the grueling life of an investment banker. Another point is that basic salaries in investment banking are high and is raising since the GFC, while bonuses may be shrinking. It is necessary to consider the overall package and long-term future earning potential.

In investment banking, professionals represent companies and help them to raise capital or sell them. Whereas in private equity jobs, the professionals buy underperforming companies, improve their operations, and sell them for profit after a brief holding period. Also, the ceiling is higher in private equity deals.

Once you made up your mind to get into private equity from the investment banking profession, this is how you need to go forward.

If you are determined to move to top private equity firms in Austin, Texas, get in touch with headhunters as a first step. It is recommended not to get in touch with any of the private equity firms directly.

It is a fact that PE transitions occur through headhunters and therefore cold calling may not yield desired results. These headhunters generally will be active around October-November and May-June cycle. Meanwhile, you can update your online resume using search-friendly keywords.

In case, you get an opportunity to have a meeting with headhunters, consider it as your first round of interview and be prepared for this informational interview. It is best recommended to get well-prepared for six months or so before highlighting your online resume. It gives ample time to get prepared to ace the first interview. Mention not to say, headhunters may be a former banker who knows to grill all technical aspects.

Be an expert in dealing with questions on deal experiences, modeling knowledge and skills, investment case studies, and other aspects of private equity.

You may get interviews simultaneously from other firms too and all will take around a few months. So, it is crucial to be cool and active in the existing job too. It is necessary to demonstrate an extreme level of metacognition during the process.

Technical skills and an investor mindset are necessary to succeed in private equity. Also, building relationships both at the internal and external levels is essential. So, make a move by getting well prepared for interviews and don’t get afraid to make the leap. Everyone would like to hear your opinion. Dare to speak your experience and view in interviews. Determination and sincere efforts win the race.


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