We all know how important it is to write a proper application. Resume, cover letter, references, all must be perfect. However, once you get the invitation for an interview, the actual work begins.

The interview process in the Private Equity industry typically involves several rounds. It’s not unusual that candidates are invited back more than five times. Some interviews are more technical, others test your personal skills. If you apply for junior level positions, you will be asked more technical questions. For senior level positions, communication skills and industry knowledge are more important.

Interviewers Test Personal Skills and Technical Knowledge

Let’s face it – landing a job in a private equity firm is not easy. Most candidates have a proven track record and they are among the high performers in their companies.

Employers conduct interviews to find out two things:

  • Does your personality fit into the company and to the specific job?
  • Do you have the technical skills needed to perform in your new job?

Regarding the first question, there is not a lot you can do to prepare. You either fit in or you don’t. Being yourself is the best approach – your interviewer will find out anyway. However, you should demonstrate confidence and the ability to communicate clearly.

It’s definitely a smart idea to research the name of your interviewer or look them up on LinkedIn. Always know who you are talking to. You may want to ask them about former projects or the city where they grew up. It’s a good way to break the ice and your interviewer will appreciate it if you give them the chance to highlight their own success.

Technical knowledge is usually tested via case studies. If you worked in investment banking or strategy consulting before, you will be familiar with that setting. Nevertheless, it’s always good to brush up on the basics again.

Don’t Get Lost In the Interview Process and Don’t Waste Your Time

The interview process in private equity companies is time consuming. If firms don’t urgently need someone, they take their time…sometimes even months. Considering that you have to take time off from your work that can be quite overwhelming.

If you are still young, getting more interview experience is actually a good thing. However, if you are in a more senior position already, try not to get lost in the interview process. If you don’t have an offer after three or four interviews, that’s usually not a good sign. Don’t be afraid to ask where you measure up in the process. You don’t want to waste your time – or theirs.

Private equity jobs are hard to get. However, it’s not impossible. Preparation, skills and even a little bit of luck is what you need to start your career in this exciting industry.

Jobs in the Private Equity industry aren’t 9-to-5 positions. That’s not a secret. Employers usually communicate their requirements quite openly during job interviews. Candidates know that they will work more than in other jobs, but they will also earn more. Long working hours are one reason why the financial industry is paying relatively well. However, not everyone works the same hours and not everybody earns the same salary. It depends on the amount of hours worked and obviously also on the position within the company.

Most professionals work between 60 and 79 hours per week

Job Search Digest’s 2015 compensation report divides employees into 10-hour groups and found that the majority (39%) of Private Equity professionals work between 60 and 69 hours per week followed by those working 70-79 hours per week (32%). The remaining employees are grouped as follows:

PE Hours Worked per Week

In general, people work more than last year. That may be due to a more challenging environment and an increased dealflow.

Employees working between 70 and 79 hours earn the most

However, more working hours do not necessarily correlate with a higher salary. Employees working between 70 and 79 hours per week make the most ($306,000 per year). On the other hand, individuals working more than 90 hours per week earn significantly less ($250,000 per year).

The reason for this is that most juniors are in this category. An analyst or associate bears the highest workload, while more senior positions, like Vice Presidents or Managing Directors, will be somewhere between 60 and 80 hours per week. The following shows the findings in more detail:

PE Compensation by Hours Worked per Week

 

A Managing Director earns about $200 per hour – or five times as much as an Analyst. A Vice President earns about $100 per hour. Analyst, on the other hand, earn around $30 per hour. That’s less than many non-academics earn per hour.

Juniors have to go through a tough time, before they finally arrive at an attractive hourly salary. However, Job Search Digest’s study clarifies a myth as well: Many starters think once they reached a higher position in the industry, they will have relaxed working hours. That’s just not true. Work-life balance will become better, but there will always be much more “work” than “life.”

Sure, a Management Director isn’t nearly as much in the office as an Analyst. But that doesn’t mean he is not working. Anyone who wants to be successful in the financial industry will have to dedicate his life to his career. Nobody gets to the top by working 40 hours per week.

A financial professional commented in the Guardian: “Only people at the very top receive the huge bonuses […] For them this is more than a job. It’s a life.”

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