I have worked at four different private equity portfolio companies (portcos) from entry level to C-level.
The absolute #1 question I get is: “how can I get a job in a PE portfolio company?”
In my view, there are two components to this: 1) how you present yourself and 2) how you find opportunities. This post is about how to find opportunities.
Finding PE operator roles can be overwhelming. Companies do not always advertise that they are owned by investors. But if I had to summarize the key to success, it would be: relentless persistence.
But how to get started?
Focus
You first need to narrow your view at least slightly - industry, region, role. This may feel limiting but it will actually help you be more successful in your search by churning up higher likelihood leads.
Ask Your Network
Next, you need to leverage your network. That means you need a network. Networking is code for brazenly asking. Ask everyone you know for help. Lean in. People generally love doing favors and if they don't, they will at least love to get you off their back if you persist long enough. Your network is your net worth, they say.
The most obvious networking tool is LinkedIn. You may think LinkedIn is for self promotors, but it can be useful. Here's my story of making it work for me.
The first company I sold was to a strategic buyer. That meant I was out of a job. I was on the hunt again. I called the investment firm I worked for and asked if I could come out to meet with everyone at the firm individually. They graciously agreed.
So I would heading out to San Francisco to meet with a slew of billionaires and hundred millionaires. But how could I make those meetings productive? I needed a job, not a meeting.
I scheduled my meetings and connected with each partner on LinkedIn. Then to prepare, I went through every single one of their contacts (thousands!) and flagged anyone who seemed interesting. I made a list from those and researched the people and companies. I culled the list down to the folks I thought could make sense to discuss.
When it was time for my meetings, I had a clear agenda. I told each partner I had scoured their LinkedIn and created a list. Would it be ok if I asked them about each person I was interested in talking to? They loved that I had done the work and taken the onus off of them.
I ended up dozens of introductions, some of which led to interviews and even job offers.
Talk to Recruiters
Specifically, find PE-focused recruiters. It has become its own practice within recruiting firms. Private equity firms lean heavily on recruiters for top roles. This is less true at more junior roles, but recruiters can be a great entrée into PE-backed businesses. I have gotten multiple PE operational roles through recruiters. That's as simple as conducting a Google search, uploading resumes, and networking (again, LinkedIn).
One side note on recruiters - they often have specific criteria they are looking for. For example, I once worked for a CFO who was hired by the PE firm. The criteria for their search was twofold: lives in the same city as the company and went to Harvard, Stanford, or Wharton for an MBA. Whatever you think of that criteria, that's what it was. The recruiters filtered resumes that included one of those school names.
When I learned that (a few years into my job), I asked my company to send me to an executive education program at Harvard. No, I didn't learn a thing. But, it did filter me into a search where I landed my next CFO gig. Look for differentiating angles.
How to Find PE-Sponsored Companies
I have found three useful ways:
Databases
Websites
News
Databases can be expensive to access, but if you do have access, they can be a goldmine. Many allow you to filter on certain criteria, like ownership status. CapitalIQ and PitchBook are two popular examples.
Another (free) way is to explore private equity firms' websites. There, they list all of their current and past portfolio companies. Often, past portfolio companies were sold to another PE firm.
I have spent weeks of my life clicking through every single portfolio company of hundreds of private equity firms. Yes, it’s tedious, but very few will go to these lengths. That gives you an advantage.
News is another way to learn about PE portcos. PE firms will often publish a news release when they buy or sell a company. There is no better time to pitch yourself to a company than when they have recently transacted. The new firm will want to make sure the company is shored up with talent of all kinds.
Two strategies for tracking news: 1) use Google Alerts to flag key search terms (for example, “[city]” + “private equity”) and 2) find newsletters that publish recent PE deals. One good example of a newsletter is Axios Pro Rata - they publish a handful of deals ever week.
How to Get in Touch
When you have identified a company, reach out directly. My strategy has always been to reach out to the private equity firm first. Explain to them who you are and why you want to join their portfolio company. A good cold email will be impressive and they will pass along your resume to the company.
The reason I go to the private equity firm is because when they hand a resume to the company, there is an implied pressure to follow up. Managers are not in the habit of ignoring emails from the PE firm.
Email Tip: If you don’t have an email for the right person, piece it together. Companies typically reuse formats. For instance, if you find one email address that is first initial + last name @ domain.com, that might be the same for your target contact. When in doubt, try the common formats. Spray and pray!
Follow Up
This is what landed my last job. While networking, I was talking with my old CEO who mentioned a company he was advising for a private equity firm. He explained that they were considering a new management team, but just weren't sure yet.
I was interested, but worried I would miss this opportunity…
I asked the CEO if it would be ok with him if I scheduled a recurring monthly call. Maybe it was 5 minutes, maybe thirty, or maybe we skipped it altogether. But, that call would be a prompt (to both of us) to keep this opportunity in view and stay in touch. Eventually, I got the job.
How to find a job in private equity? Be resourceful and be relentlessly persistent.
Good luck! Let me know if I can help.
@PEOperator