10 Tips From A Headhunter For Joining Private Equity

1. Have a clear vision of the Private Equity market in France

Securing an internship or a permanent contract in Private Equity is as challenging as a novice rider aiming for a clear round over a full obstacle course. It requires a lot of preparation, so start thinking about it from the early years of your studies.

Before crafting the perfect CV, some groundwork is needed. First, research the different types of Private Equity funds: their nature (primary, secondary, minority, majority), their size (Small, Mid or Large Cap) and their sector focus (TMT, FIG, healthcare). You need to know which type of fund suits you best. Once this first step is done, study the different funds in Paris and their teams. When you apply, you need a real understanding of the fund ecosystem and of each fund’s culture.

2. Understand the team culture

Before an interview, always research the team, the backgrounds of its members and their interests. Teams are small, so it is essential to fit in: understanding a fund’s culture is primarily about understanding the people who make it up. If they all went to business school and were active in student associations, it is risky to declare “I have always refused to join an association, it is a waste of time”. Similarly, if it is a multicultural team with several dual nationals, show your interest in travel and in discovering new cultures.

Bring out as many points as possible that connect you with the fund you want to join. This is why building your network is an essential part of your preparation. Effective networking means talking with as many people in the sector as possible. It maximises the chances that your CV ends up at the top of the pile, and above all it gives you a more personal knowledge of the fund.

3. Follow the news of the funds you are applying to

You must know everything about the fund you are applying to. Arriving at an interview knowing nothing about the team, the strategy or the portfolio companies is a deal-breaker. Information is easy to find online, especially on the funds’ own websites: assets under management, fundraisings and their amounts, investment sectors and the list of portfolio companies.

4. Be technically ready

You need to be ready before you even apply, as things can move very quickly between sending your application and being called for an interview. Seats in Private Equity are highly sought after, so you cannot afford to fail on technical questions or modelling tests.

5. Know how to talk about your work

Whether for an internship or a permanent contract, applying to Private Equity implies that you already have experience. 90% of internship applicants and all candidates for a permanent contract have already worked on M&A deals, on the financial or market side. You should always be able to talk about the deals listed on your CV and have a complete understanding of these transactions. Otherwise, the recruiter may conclude that you did not really work on the deal, or that you listed a random one.

6. Think strategy, not just finance

To choose between two similar profiles coming from M&A or Transaction Services, recruiters look at how candidates reason and whether they see the big picture. They want to know not only whether one sector interests you more than another, but above all whether you understand what drives that sector. The interviewer will test your business sense: you must be able to talk about the market, not just the numbers.

7. Have a critical mind

“Is there a company in our portfolio in which you would not have invested?” is a question that comes up very often in Private Equity interviews. Many candidates are afraid to answer it for fear of offending the interviewer, when they are actually expected to share their view with solid arguments. A fund can make a bad investment, and you can disagree with a deal, but you must back your view with arguments, figures and market information. Always agreeing with the interviewer in the hope of pleasing them works against you.

8. “Do you have other processes?”

Be careful with this tricky question. When applying for an internship in Private Equity, mentioning other processes can be viewed positively, provided your applications are coherent. For a position in a Mid Cap fund, the recruiter will not understand why you are also in processes with Large Cap funds. It sends a bad signal: the interviewer will think you are applying to every firm in the market just to break into Private Equity, regardless of the funds and their specificities.

9. Be transparent about your remuneration

If you go through a headhunter, be transparent about your current remuneration. Whether you come from M&A, strategy consulting or Transaction Services, salary scales are well known at every level of seniority. The headhunter knows how much everyone earns, so lying is counterproductive. On the contrary, the headhunter is there to help you and to tell you whether the opportunity is consistent with your current package.

10. Always respond to a headhunter

90% of Tier-1 Private Equity funds use headhunters for their recruitment. If a headhunter contacts you at some point in your career and you are not interested, a short, clear answer is enough: “Thank you for your message, but I am not looking to make a move at the moment.” A candidate who ignores a headhunter sends a very bad signal, and when they want to join Private Equity a few years later, they may find themselves on the back burner. In a Private Equity process, the headhunter is the link between the candidate and the recruiter, so maintaining a good relationship is essential.