Breaking into private equity (PE) seems out of reach if you haven’t started your career in investment banking. That’s the path most people expect—a high-pressure analyst gig at a big bank, followed by a jump into PE. But is investment banking the only ticket in? The answer is no. While it’s tough, there are real ways to step into private equity from other backgrounds if you play your cards wisely.
Why Investment Banking Has Been the Standard Route
Investment banking trains you fast. Analysts learn how to run financial models, analyze deals, and work long, demanding hours. Private equity firms want people who won’t freeze under pressure and who know how to assess a company’s value. That’s why they recruit so heavily from banks.
But this isn’t the only experience that matters. PE firms want people who can add value right away—people who can close gaps, spot upside, and work with the teams they acquire.
Photo by Ketut Subiyanto
Alternate Pathways Into Private Equity
Management Consulting
Many PE firms now recruit consultants, especially those from top firms like McKinsey, Bain, or BCG. Consultants bring strong problem-solving skills, operational expertise, and a knack for improving companies after acquisition. If you excel at making businesses run better and know your way around financial statements and Excel, you have a strong story for PE.
Corporate Development
Corporate development teams inside big companies do M&A deals—buying, selling, and investing in other businesses. This hands-on exposure to transactions gives you muscles that PE firms value. If you’ve been at a Fortune 500 company working deals, highlight your direct deal experience and teamwork.
Big Four Transaction Advisory or M&A
Accountants and advisors at firms like Deloitte, EY, PwC, and KPMG end up with strong financial modeling and deal experience, sometimes closing dozens of deals a year. If you’ve worked in transaction services, due diligence, or deal advisory, you already speak the language of PE. Emphasize your ability to analyze companies, model cash flows, and assess risk.
Specialized Industry Roles
Some PE funds focus on sectors like healthcare, technology, or energy. If you’re an expert in a field, you can bring something bankers may not—real insight. Maybe you’ve been an operator, a business development leader, or an executive at a company in a target sector. This can win you a seat at a firm hunting for that angle.
MBA Programs
A top MBA can reset your career. Many PE firms recruit straight out of Harvard, Wharton, Stanford, and a handful of other schools. Use your time to pick up essential skills (modeling, negotiation, deal process) and network like crazy. Summer internships are key—firms want to see you can perform in the job.
Skills You Need To Stand Out
Switching into private equity from outside investment banking means you need to double down on your strengths and cover your weaknesses.
Core Hard Skills
- Financial Modeling: Know leveraged buyout (LBO) models inside-out.
- Excel: Be fast and accurate with spreadsheets.
- Deal Process: Understand due diligence, transaction structuring, and closing mechanics.
- Industry Expertise: Deep knowledge in a sector can make you the go-to person in a specialized fund.
Key Softer Skills
- Relationship Building: Private equity is about people—sourcing deals, managing executives, working in small teams.
- Communication: You’ll need to explain complex ideas simply, to colleagues who may not be from finance.
Carving Out Your Unique Value
Don’t just say, “I want to be in private equity!”—show why you bring something no one else can. Got a healthcare background and know the issues from the inside? Can you ramp up revenue using strategies you pioneered as a consultant? Maybe you have a Rolodex in your niche that opens up proprietary deals. Make these your selling points.
How To Get on Private Equity’s Radar
Direct Networking
Most jobs in PE aren’t advertised—firms hire through connections. Coffee chats, alumni introductions, and cold LinkedIn messages (targeted and thoughtful, not spammy) all work. Target smaller or middle-market firms first; they’re often more open to non-bankers.
Head Hunters
Recruiters fill roles quickly and want people ready to hit the ground running. Build relationships with industry-specialized recruiters; show them you have both the technical chops and the drive.
Industry Events
Evening panels, workshops, and conferences are gold. Introduce yourself to speakers, ask good questions, and follow up with a thank-you note or LinkedIn message.
Building Deal Experience
If you haven’t closed a deal yet, get involved any way you can—help on a side project, work with your corporate dev team, or consult for a search fund on the weekends to build stories for your resume.
Firms Most Open to Non-Bankers
Big PE names (think Blackstone, KKR, Carlyle) lean into investment banker hiring. But many smaller, mid-market, or sector-specific funds actually seek out diverse skills. Research firms that have a track record for hiring consultants, operators, or specialists. Your odds are higher where diversity of experience is valued.
Frequently Asked Questions
Do you need a CFA to get into private equity?
No, but a CFA helps if you come from a non-traditional finance path. It signals competence with numbers and discipline.
Can corporate finance experience help?
Yes, especially if you work on deals, valuations, or strategic growth projects.
How much does networking matter?
It’s essential. Most offers go to people within a firm’s existing network circles.
Conclusion
Private equity is tough to break into, especially if you don’t have investment banking on your resume. But it’s not impossible. Management consulting, corporate development, Big Four advisory, and top MBAs open doors. What sets you apart is your ability to tell a story that aligns your skills with what the firm needs. Build strong financial skills, learn the deal process, network relentlessly, and focus on smaller or sector-focused funds first. If you have the grit to hustle and the drive to keep learning, you can make the leap into private equity, regardless of where you started.