Tips for getting into private equity as a woman or diverse candidate
Private equity is notoriously tough to get into – Blackstone’s graduate program, for instance, has an acceptance rate of just 0.3% - but the rewards can still be worth it, with eight figure paydays still possible even in tough times.
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The hurdles to getting in are high, however. Most people who go into private equity tend to be coming off the back of a two-year investment banking analyst program – and it’s highly competitive for those former analysts, too.
If you’re a woman or from a diverse background, the odds may be stacked even further against you. Luckily, however, you have options, ones that often come courtesy of your peers that have treaded the same path as you before.
Resources for women and diverse private equity candidates
There are numerous resources available for female and diverse candidates. SEO offers the Alternative Investments Fellowship Program (AIFP), designed to prepare incoming first- or second-year banking analysts from diverse backgrounds for buy-side recruiting, and then for those professionals already in the field to further network with each other.
Synergist Networks runs mentorship programs that connect female investors with female college students, providing early access and guidance. Girls Who Invest also offers extensive programs to help women break into finance during college and beyond.
Many firms also have diversity-focused partnership programs. For instance, TA Associates partners with Evercore on the TA-CORE program, which creates career opportunities for racially diverse analysts at Evercore. These initiatives often include workshops, mentorship opportunities, and exclusive recruitment events. These resources are invaluable not only for preparing you for the recruitment process but also for helping you build a network that supports long-term success in the industry.
Networking for women and diverse private equity candidates
Finding mentors and sponsors within the industry can be especially impactful. Seek out women-focused industry groups and alumni networks (e.g., Synergist Networks, Women in Private Equity group at multiple colleges) for mentorship and networking opportunities.
At work, it’s even more crucial to identify a network of advocates who can vouch for your skills and serve as crucial references during the recruiting process.
Mindset for women and diverse private equity candidates
The recruiting process can feel daunting at times, especially for diversity candidates that have historically been underrepresented in the industry – but remember to stay authentic. Be confident and vocal.
Advocate for yourself by participating in diversity recruiting events and reaching out to recruiters - many firms are becoming more welcoming of diversity candidates and usually host specific recruiting events for diversity candidates.
Other trends in private equity for women and diverse candidates
More LP demands for diversity: Increasingly, Limited Partners (LPs), such as pension funds and endowment funds, are prioritizing DEI in their asset allocation decisions. This increases the broader awareness of DEI within PE firms and the benefits diversity candidates can bring to employers.
Diversity metrics and accountability: There are more standardized frameworks for reporting diversity metrics, which are sometimes tied to compensation or fundraising success, ensuring more firm attention to DEI in recruiting and again, increases access for diversity candidates to private equity as a whole.
DEI-Focused Partnerships: Firms are collaborating with external organizations like Girls Who Invest, SEO Alternative Investments, and other talent development programs to build diverse talent pipelines, making PE more accessible to diversity candidates. Hence, it’s important to leverage these programs as additional touch points to get to know different firms and increase your chances of breaking into PE.
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