The executive job market for PE-backed companies is running hotter than any other sector we’re seeing right now. Which means we’ve had a lot of conversations lately with senior leaders in transition who want to leap into working for private equity.
I recently sat down with executive recruiter Ken Schmitt, co-founder of Ascentria Search Partners, and long-time D&S client Rajas Joshi, who just wrapped a job search after getting THREE offers (two in PE).
Here is their advice for breaking into the PE market right now.
- Expect a Long & Rigorous Process
PE searches are longer than ever right now and include more rigor than we’ve seen. For a market that is known for its speed, most candidates are going through interview cycles that stretch for months, and include technical or aptitude tests and/or presentations or case studies.
The good news: Ken says the majority of his placements include average salary increases of 15-20% right now, which is up from a couple of years ago. So if you come out on top and get the offer after a slow, rigorous process, you have more leverage to negotiate.
- Build Your Network Through the Deal Ecosystem
You do not need prior PE experience to break in, but you do need a way in. Investment bankers, CPAs, and valuation professionals sit inside the deal-making world and often move faster than cold outreach. Pair that with research on which PE funds already invest in your industry, and you have a credible reason to be in the room.
Want help connecting with PE firms in your industry? We can help.
- Prove You Can Operate Lean
Portfolio companies run tight. Even a $100M business may only have a few hundred employees, so departments may not be stacked with direct reports to delegate to or deep pockets to get things done. Both Ken and Rajas pointed to the same expectation: be ready to execute personally, not just manage.
If your career has been with large or enterprise companies, make sure to share examples where you’ve operated within a tight budget, worked in ambiguity, and been hands-on to see a project over the finish line.
- Think Like a CFO, Even If You’re Not
Rajas was interviewing for COO roles, but knew that if he demonstrated a deep understanding of finance, he’d speak their language. So he did his own financial modeling as part of his interview process and presented his calculations. Ken agreed, saying PE firms want operators fluent in the numbers, not just strong in their functional lane.
Bonus: Rajas was able to dig into the numbers before accepting an offer. It saved him from accepting an equity package that looked great on paper but was mathematically impossible given the hold timeline.
- Don’t Focus Solely on the Equity Upside
An exciting cap table can mask an unrealistic growth target. Ken’s advice for candidates new to PE: prioritize cash compensation until you understand how equity actually plays out. It’s also worth asking for a year-long employment contract and/or severance agreement. Hold periods are stretching well past the old three-year norm right now, and leadership teams don’t always make it to the exit anymore.
Turning Insights Into Action:
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