Get a Job

Mon., Apr 28 - Alternative Universe [excerpt]

By Marc Raybin

It's that time of year when grads flood the job market, but they may find the PE space crowded  

Walking through Harvard Square midweek, there was a palpable sense of hope and enthusiasm for the future. Grounds workers were hanging crimson flags on poles, tidying up the ivy and making sure the venerable educational institution was on its way to being ready for commencement. Soon-to-be graduates could barely contain their excitement for their futures, but for those looking to get into private equity, the future may not be so bright.

According to Simms Browning, the chief executive officer of PrivateEquityJobs. com, they are looking mostly at senior people from the investment banking field who have relationships and can help with deals. These firms are concentrating on making selective senior position appointments.

Something else to consider is that the market of managers looking for work has gotten bigger with the rash of layoffs as a result of investment banks' multi-billion dollar write-downs. Craig Asche, executive director of the Chartered Alternative Investment Analyst Association, says "PE firms now have even greater access to top talent who were previously involved in the major institutions on the Street."

A question to ask then, is if the market is getting tougher these days for private equity job candidates, where should they be looking for the best opportunities? Both Asche and Browning have their eyes set on a few specific areas.

"While this is a challenging environment for the mega-deals that we got used to seeing in 2006-2007, there is still opportunity in international, mid-market and defensive deals," says Asche. "This will certainly be reflected in the hiring practices at private equity firms." 

Asche says that with firms looking to do more middle market and international deals as a result of a slowing down in the mega-deal space, anyone with experience in the middle market will have value to a firm. 

For graduates looking for a job without the needed private equity experience, these could be tough times. It would behoove them to listen to the advice of both Asche and Browning. Spring may have sprung, and April showers could bring May flowers, but that does not mean everything will come up roses for those looking to break into private equity now.