Could you perhaps make a video on evaluating the decision to stay in a post-MBA private equity role and trying to make partner whether that be at a LMM/MM shop or a MF, versus gaining some experience working in PE and then deciding to venture out and start your own fund? Would love more info on that
This might not warrant a full video, but in general, very few people start their own full scale private equity funds. Some mid-level people might join a team that's just starting or do something like a search fund, but few go out and raise PE money. If you look at any fund of scale launched over the past few years, it's typically led by a big partner at a top PE fund already. This is different vs. hedge funds. A lot more people go start their own fund in hedge funds.
I was just wondering what is the college path for someone that wants to be successful in private equity. What should I major in for my bachelors? What should I do after my bachelor? What should I do for my masters? Etc...
My dad was a managing director at Blackstone, so for me I just had to reach out to a family friend. Everyone has their own path into PE though - Good luck!
@@lawrencechungg I felt guilty at first, but I work just as hard as everyone else does. Yes, I got to bypass the recruitment process, but I still have to prove myself.
would you guys have insight into how the VC world operates? in terms of workload at junior vs senior level, career progression, what mid-to-late career might look like? much thanks,
I am really interested in finance and business, but the more I look into it, it seems like every industry requires you to be working all the time, even when you have kids. Is there any industry or job in finance or business (like consulting or product management) that is more reasonable?
Corporate finance and PM roles are definitely the best in terms of hours on the job. I guess asset management or portfolio management would work too. This usually require a CFA though and portfolio management is hard af to break into at the top level.
Product management is pretty hype. If you're not in finance at all, I'd probably think about it. If you're already on the finance path, I'd say the most survivable jobs are: working at a long only fund, pension funds, fundraising at a PE / HF, then maybe VC.
I want to peruse a career in PE but my high school GPA isn’t high enough for me to get into a top school. Any advice on how I may get to where I want to be?
I suggest asking yourself first why you want to get into Private Equity? Is it because you want money? Or is it because you generally enjoy solving problems in finance using mathematical modeling and algorithm development? I'm assuming you're talking about a PE analyst position by the way, if it's the first reason then don't go into PE because you'll be drained and either quit or get fired your first couple of years. It's cliche and it's said numerous times but it's very true, *do what you're passionate about* don't do things for the money EVER cause you will hate your life.
@@j.pesquera I have always wanted to work in the business world, but I am not the salesman type. I can’t pitch an idea to hundreds of people, but I’m less worried about developing my skills than I am my time management and my resume. I know a good amount of people that have worked in finance and I’m just really unsure what to pursue and how to get there. I’ve always been passionate about business because in my mind it is what makes the world move around us. Yes, financial security is why I am interested in the finance career path, but like I said I’ve researched hundreds of jobs and I just can’t figure out what I would enjoy and fit into the most. I’ve already committed to a school but it isn’t a target school so I am probably going to need to work a few extra years to see what specific career fits me. Thank you for the advice I appreciate it👍
@@tylerd3246 No problem, but I think that's the issue with a lot of the younger generation, they focus on money ONLY and not on what they would enjoy doing. I would suggest really spending some time searching what you enjoy doing and then strive to be the best at it, the money WILL follow, I promise.
Not as bad as consulting, but yes I think a lot of partners are going to travel at least once per week. If you're fundraising, you have to travel all of the world. I think only founders or top managing partners are going to have private jets / helicopters. A lot of junior partners are just going to fly business class.
Talked to a bunch of older mentors, kept track of what I had been thinking during banking + PE, and trusted my gut. I ended up doing a sabbatical for a few months first and then that transformed into Peak Frameworks!
@@ValleNation A private equality firm is trying to buy the factory I work at and I gave him a walk of the floor. Basically I gave him an elevator pitch during the walk. So yes I was actively trying to switch to PE.
Was up bro can I send you an email ? I wanted to break into this field and I’m an engineer undergrad so I feel like I can’t relate to you. Can I email you I have some questions to ask
High stress and pretty difficult analytical tasks. Yes I think that would be reasonable, thought you still might need an MBA. I've only seen a couple of profiles like that.
Focus on getting finance internships. Join finance and investing clubs at your school (or form them). Follow the news and have an opinion on the market. Have a basic understanding of valuation and financial modeling by the time you graduate.
Not really unfortunately. If you're really good at your job, there will be fewer "comments" and iterations. But the nature of finance work is extremely interdependent so it's hard to dramatically cut down on your hours.
Depends on your role. If you are able to build automated / semi-automated data transformation processes It can help you cut down the time you spend rolling models forward significantly. Agree that it won’t be more than a ~10% impact but it can really help you in some crunch times.
Hi I'm Vincent, a Private Equity Fund Accountant from Royal Bank of Canada I&TS (Malaysia), joined for 1 year. May i know what's your view on this career path? 💡
Sounds like a good stable job to me. Not as much earning potential initially but can eventually work up to be a controller / CFO at a private equity fund which is a great job.
What would elevate the channel even more would be to bring in professionals in the industry. Amazing channel regardless.
bruv, mans spot on everytime.
Could you perhaps make a video on evaluating the decision to stay in a post-MBA private equity role and trying to make partner whether that be at a LMM/MM shop or a MF, versus gaining some experience working in PE and then deciding to venture out and start your own fund? Would love more info on that
This might not warrant a full video, but in general, very few people start their own full scale private equity funds. Some mid-level people might join a team that's just starting or do something like a search fund, but few go out and raise PE money. If you look at any fund of scale launched over the past few years, it's typically led by a big partner at a top PE fund already.
This is different vs. hedge funds. A lot more people go start their own fund in hedge funds.
Private Equity is the best finance job in the world - I regret every single day not having tried to break into the industry
Better than hedge funds?
Excellent video, thank you for sharing your expertise with the world.
Very good video mate
I was just wondering what is the college path for someone that wants to be successful in private equity. What should I major in for my bachelors? What should I do after my bachelor? What should I do for my masters? Etc...
Econ / finance degree or top US school. Get into a top investment bank. Then you can recruit for PE.
My dad was a managing director at Blackstone, so for me I just had to reach out to a family friend. Everyone has their own path into PE though - Good luck!
@@ebitdareadthebook1535 lol must be nice
@@lawrencechungg I felt guilty at first, but I work just as hard as everyone else does. Yes, I got to bypass the recruitment process, but I still have to prove myself.
@@ebitdareadthebook1535 Lol Please refer me 😭JK
How can you work all those hours without burnout? What keeps you going? Do you like this lifestyle?
Insane compensation and it’s not consistent. The really high hour weeks are only during live deals
would you guys have insight into how the VC world operates? in terms of workload at junior vs senior level, career progression, what mid-to-late career might look like?
much thanks,
We can add it to the list! I don't have personal experience but we can tap our friends for this info.
Even I would love to know more about the VC world
Great video!
I am really interested in finance and business, but the more I look into it, it seems like every industry requires you to be working all the time, even when you have kids. Is there any industry or job in finance or business (like consulting or product management) that is more reasonable?
Corporate finance and PM roles are definitely the best in terms of hours on the job. I guess asset management or portfolio management would work too. This usually require a CFA though and portfolio management is hard af to break into at the top level.
Product management is pretty hype. If you're not in finance at all, I'd probably think about it.
If you're already on the finance path, I'd say the most survivable jobs are: working at a long only fund, pension funds, fundraising at a PE / HF, then maybe VC.
I want to peruse a career in PE but my high school GPA isn’t high enough for me to get into a top school. Any advice on how I may get to where I want to be?
Crush your freshman year then transfer.
I suggest asking yourself first why you want to get into Private Equity? Is it because you want money? Or is it because you generally enjoy solving problems in finance using mathematical modeling and algorithm development? I'm assuming you're talking about a PE analyst position by the way, if it's the first reason then don't go into PE because you'll be drained and either quit or get fired your first couple of years. It's cliche and it's said numerous times but it's very true, *do what you're passionate about* don't do things for the money EVER cause you will hate your life.
@@j.pesquera I have always wanted to work in the business world, but I am not the salesman type. I can’t pitch an idea to hundreds of people, but I’m less worried about developing my skills than I am my time management and my resume. I know a good amount of people that have worked in finance and I’m just really unsure what to pursue and how to get there. I’ve always been passionate about business because in my mind it is what makes the world move around us. Yes, financial security is why I am interested in the finance career path, but like I said I’ve researched hundreds of jobs and I just can’t figure out what I would enjoy and fit into the most. I’ve already committed to a school but it isn’t a target school so I am probably going to need to work a few extra years to see what specific career fits me. Thank you for the advice I appreciate it👍
@@tylerd3246 No problem, but I think that's the issue with a lot of the younger generation, they focus on money ONLY and not on what they would enjoy doing. I would suggest really spending some time searching what you enjoy doing and then strive to be the best at it, the money WILL follow, I promise.
Please make a videos on hedge fund like you are making for private equity thank you
Will add it to the list, thanks!
So associate in pe = analyst in ib,
... so whats an associate in ib in a pe firm??
What do you recommend focusing on more in college/Uni for necessary skills required in PE
Break into investment banking or consulting then focus on PE after you have a full time offer.
@@PeakFrameworks Is it possible to transition from quantitative finance to PE
Hello. Can you get into PE with a bachelors in law? Or should you get a masters in finance/MBA?
You can... but MBA is going to be way better / easier
You said that as a managing partner you're always on the road. Does it means you take private jets and stay in hotels all the time?
Or you can have a somewhat normal family life
Not as bad as consulting, but yes I think a lot of partners are going to travel at least once per week. If you're fundraising, you have to travel all of the world. I think only founders or top managing partners are going to have private jets / helicopters. A lot of junior partners are just going to fly business class.
How did you (Matt) figure out what you wanted to do after PE?
Talked to a bunch of older mentors, kept track of what I had been thinking during banking + PE, and trusted my gut. I ended up doing a sabbatical for a few months first and then that transformed into Peak Frameworks!
I was a process engineer for 3 years, I have a PE interview next week lol.
How did that happen? Did you actively reach out to PE companies?
@@ValleNation A private equality firm is trying to buy the factory I work at and I gave him a walk of the floor. Basically I gave him an elevator pitch during the walk. So yes I was actively trying to switch to PE.
Was up bro can I send you an email ? I wanted to break into this field and I’m an engineer undergrad so I feel like I can’t relate to you. Can I email you I have some questions to ask
What is the hardest thing about PE? Can you join PE as a former VC-backed Founder with a small ~$1M exit?
High stress and pretty difficult analytical tasks. Yes I think that would be reasonable, thought you still might need an MBA. I've only seen a couple of profiles like that.
Thanks that helps a lot, I just wanted to ask what do you recommend I do to be prepared for this? I'm still in high school.
Just focus on getting into a good school for now. Then join the investment club with the most IB placements. Then break into IB. Then break into PE.
Peak Frameworks thank you
Another approach is to start with equity crowdfunding. This is the course of action that I took.
What skills i need to gain to make myself attractive to employers? I’m a financial economics major btw and i’m not in the US
Focus on getting finance internships. Join finance and investing clubs at your school (or form them). Follow the news and have an opinion on the market. Have a basic understanding of valuation and financial modeling by the time you graduate.
Can these hours be reduced by having a very good technical/programming skill set?
Not really unfortunately. If you're really good at your job, there will be fewer "comments" and iterations. But the nature of finance work is extremely interdependent so it's hard to dramatically cut down on your hours.
Depends on your role. If you are able to build automated / semi-automated data transformation processes It can help you cut down the time you spend rolling models forward significantly. Agree that it won’t be more than a ~10% impact but it can really help you in some crunch times.
Can you go straight into private equity?
Yes, have to be a top candidate at a top school though.
Do I need a degree to become a private equity associate?
Yes.
Does not having an MBA affect your career progression in PE?
Depends on the firm. At most older big firms you need an MBA to progress. At "newer" firms (
You ain't on instagram ?!
Haha, I have a personal Instagram but no there's no Peak Frameworks account!
Hi I'm Vincent, a Private Equity Fund Accountant from Royal Bank of Canada I&TS (Malaysia), joined for 1 year. May i know what's your view on this career path? 💡
Sounds like a good stable job to me. Not as much earning potential initially but can eventually work up to be a controller / CFO at a private equity fund which is a great job.
I'll be honest, the background music sucks. Also, thanks a lot for all the information!
Haha thanks for the feedback!
What is the age limit for entry level position in private equity?
I would say if you haven't broken into the industry by early 30, it's most likely too late.