As one of the most lucrative asset classes, private equity (PE) has attracted top talents from consulting, investment banking, etc. However, landing offers from top PE firms like KKR and Blackstone is extremely competitive. This article summarizes the key credentials and capabilities that PE firms look for when hiring investment consultants.
Prestigious backgrounds in consulting or investment banking
The top PE firms tend to heavily focus on candidates with several years of experience at leading consulting firms like McKinsey, BCG, Bain or top-tier investment banks like Goldman Sachs, Morgan Stanley, etc. Stellar credentials from these firms demonstrate strong analytical skills and professional maturity that prepares candidates well for the rigors of private equity investing.
Financial modeling and valuation capabilities
PE firms need investment consultants to build complex financial models to value potential acquisition targets. Candidates must demonstrate fluency in methods like DCF, LBO modeling, Precedent Transactions Analysis and Trading Comps during the rigorous case interviews. Ongoing modeling tests are also common during the internship/full-time hiring process.
Strong communication and people skills
Beyond quantitative skills, exceptional interpersonal abilities are vital for investment consultants to interface with portfolio company executives, debt financing partners and fellow investment professionals. PE firms assess such qualities during informal ‘fit interviews’.
With lucrative compensation but very limited openings, PE investment consulting roles are among the most competitive in finance. Standout credentials, modeling skills and people skills are all crucial.