The Top 100 PE Funds and Choosing the Right One for You
When someone thinks about Private Equity, the names of the biggest private equity firms like KKR, Blackstone, and Apollo come to mind. However, the Private Equity industry has been expanding over the past decades, with many new PE funds being established, often by professionals who previously worked at these leading firms. In our Rankings section, we showcase the Top 100 Private Equity firms, allowing you to filter based on criteria most relevant to you, such as headquarters location, sector focus, and more.
Having worked with over 100 candidates here at Break Into PE, we often hear from individuals eager to join one of the top PE firms. Keep in mind, though, that Private Equity recruiting is highly competitive, with acceptance rates lower than getting into Harvard. So, what does this mean for you?
Finding the Right Fit in Private Equity Houses
Understanding which type of fund is the best fit for you is crucial. Say you are currently working at a Tier 2 Investment Bank in London, focused on the consumer and retail sector. While it might be tempting to aim for Silver Lake, the largest Tech PE fund globally, it's important to be realistic. Silver Lake typically hires only one person per year and prefers candidates with a tech background. Instead, focusing on PE firms within your area of expertise, such as L Catterton or Investindustrial in the consumer space, will be your competitive advantage.
Why Not Aim for Tier 1 Tech Funds?
- Competition: Tech PE is the most competitive sector. Investment bankers from top firms like Goldman Sachs and Morgan Stanley with tech experience will be your direct competitors. Without a compelling story or background in tech, it’s a tough sell.
- Headhunters: Most PE recruiting is handled by headhunters who conduct initial screenings. They may not even contact you for tech PE roles if your experience doesn't align. Even if you convince KEA Consultants (top-tier London based headhunter) to put you forward in the Silver Lake (largest Tech PE fund globally) process, failing to progress in the process can harm your chances for future opportunities, also outside Tech PE.
- Time Management: Balancing your current full-time job while interviewing is challenging. Overcommitting can jeopardise your current role, and being let go would make it much harder to break into a top PE fund. Be selective and focus on interviews that align with your strengths and background.
The Importance of Networking
Tip: Networking is crucial in the PE recruitment process. We recommend candidates find people at their target funds with whom they have something in common, such as having attended the same university, worked at the same investment bank, or being from the same country (e.g., fellow Germans). This will provide insights into the culture and allow you to learn more about the fund, giving you a competitive advantage.
Strategic Preparation for Private Equity Interviews
At Break Into PE, we have successfully placed candidates at top funds like Blackstone. However, our advice often involves aiming for the right fund within your sector of interest, rather than just the top names. The role of a PE professional is similar across firms, so finding a culture and investment strategy that resonates with you is key. Many professionals at firms like Blackstone and KKR eventually move to more boutique PE funds seeking a more intimate environment with a focused investment strategy. Why not start there directly? It will maximize your chances to break into PE in the first place, while only shooting for the sexy names can lead you to not find a role at all.
Crafting Your Equity Story
Preparing your own equity story is critical when breaking into PE. There's a specific way to pitch yourself to secure an offer. Many candidates, despite being top-tier at their Investment Bank or consulting firm, face rejections because they don’t know how to effectively present their story. Don't make the same mistakes. Get ready to break into PE with the right strategy.
Want to learn more? Book a free 15-minute phone consultation with one of our star coaches, who has been in your shoes and successfully broke into PE. Let's get started!