Do you need an MBA for private equity?
Smaller firms prefer candidates with an MBA, but it's not always a requirement. If you don't have an MBA but have work experience in private equity, finance, accounting, or consulting, you likely stand a better chance at landing a job over someone without any experience.
Although many people are able to succeed in private equity without an MBA, Aggarwal says that for candidates who may not have been exposed to the full range of functional areas in their prior roles, an MBA can round out their skill set and help set them up for success in private equity.
Other requirements to start a career in private equity are: Excellent grades and a notable transcript in school. (an MBA or advanced degree is not required but can be beneficial.) Previous experience is often required and encouraged.
The MBA is better suited to people who are more interested in general management and executive leadership. MBA career paths tend to be more popular with people in investment banking, private equity, and corporate development. MBA programs typically include a lot of networking, which is one of their main benefits.
Getting into private equity directly after an MBA is nearly impossible unless you've done investment banking or private equity before the MBA.
Stanford Graduate School of Business: A Top Choice for Private Equity Careers. Stanford Graduate School of Business is another top-ranked MBA program for private equity. The school has a strong focus on entrepreneurship, which includes private equity and venture capital financing.
An MBA is only worth the expense, time, and effort when the graduate plans to work in a business-related field, in management, or as a company founder. An MBA may not be useful for those working in other industries unless they are in management or leadership roles. Not all MBA degrees are created equal.
If you don't have an MBA but have work experience in private equity, finance, accounting, or consulting, you likely stand a better chance at landing a job over someone without any experience. Getting an internship is also a helpful way to gain experience.
Private equity firms usually seek someone with a strong sense of numbers. As such, the majors they generally look for include Finance, Accounting, Statistics, Mathematics, or Economics.
Private equity is one of the most competitive jobs to get – period. Not just in finance, but across the board. Private equity firms have very specific requirements for their hire candidates, both for entry-level analyst positions and for higher-level job openings.
What is the best MBA for private equity jobs?
While many business schools can help their MBA graduates pursue a finance industry career, the M7 business schools (Stanford GSB, HBS, Wharton, CBS, Booth, Kellogg and Sloan) continue to have a strong track record of helping their graduates gain buy-side jobs in investment management, private equity and venture capital ...
CFA Is Grueling and Prolonged
Some very motivated individuals get both MBA and CFA credentials, giving them training in both the broad and more specific aspects of business, wealth, and portfolio management.
There are also Master's degrees in other areas, like Economics or Management, but you're best off with Finance or the Finance track if you want the types of roles featured on this site (investment banking, private equity, corporate development, etc.).
Blackstone considers candidates from schools across the globe. Candidates eligible for full-time opportunities are completing their final year of college or graduate school. Candidates eligible for summer opportunities are completing their third year of university or their junior year in college.
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $244,500 | $20,375 |
| 75th Percentile | $190,000 | $15,833 |
| Average | $157,532 | $13,127 |
| 25th Percentile | $115,000 | $9,583 |
For a student looking to break into one of the top 10 PE firms, your chance is 1 in 300 or 0.33%. To break into one of the top 10 hedge fund firms, your chance is 1 in 147 or 0.68%.
Stanford GSB is (Unsurprisingly) the Most Selective MBA Program. Many of you will not be surprised by the fact that Stanford GSB has the lowest acceptance rate of any U.S. MBA program. But just how selective it is might cause a few double takes. The latest data shows that Stanford GSB accepts just 6% of those who apply ...
Some of the key benefits include: Knowledge and Skills: MBA or MEM programs provide a comprehensive understanding of business and finance, including investment analysis, financial modeling, and accounting. This knowledge and these skills are highly valued in private equity and investment banking firms.
Some engineers tend to prefer the MBA path, while others prefer getting the PE license. Usually, deciding between these two career development paths will depend on your specific specialization, roles, and career goals. In most cases, an MBA usually has a relatively broad use compared to a PE.
The MBA has been the most popular graduate degree in America since 2010-2011 when it surpassed a master's in education as the number one choice for graduate students. Slightly more than 250,000 students are enrolled in MBA programs around the world, according to the AACSB.
Is the MBA losing value?
Despite the MBA still being the most popular master's degree in the United States, more than 50 percent of those in an MBA program will experience a financial net loss for obtaining the degree.
What does MBA stand for? The Master of Business Administration (MBA) is a prestigious postgraduate qualification that provides an overview of key business practices and is highly valued by top employers.
But while the traditional path to work in PE is via an MBA, an alternative path is gaining popularity. An increasing number of private equity firms — including Blackstone, Pantheon Ventures, and Oaktree Capital Management — are recruiting folks directly from their undergraduate degree.
Investment banking is all about providing capital to companies who need it. Private equity, on the other hand, is about buying companies and then growing them. So, if you're interested in finance and deal-making, investment banking is the way to go.
Getting a job in private equity typically requires a strong educational background in finance or a related field, relevant experience in areas like investment banking, and proficiency in financial modeling and investment analysis.
