Практика Shadowing: Secrets to Breaking into Private Equity (Insider Tips Revealed!) - Изучайте разговорный английский по видео
Создание урока...
1
Every banker, every banker's mom, and every banker's girlfriend wants them to break into private equity.
2
It's one of the holy grails of industries in finance
3
and today I'm going to give you guys all the five main considerations
4
and things you need to know to break into private equity.
5
Now to be fully transparent,
6
I haven't worked in private equity myself but back when I was in investment banking at JPMorgan, I spoke with a lot of headhunters to potentially go into the industry.
7
I also worked on this particular video with my classmate at Wharton, Fei Tang, and she worked in private equity
8
and will be this summer as well and she's also the president of the Wharton PE VC club.
9
Alright with that said let's go into the first main consideration on the list
10
which is the best background for breaking into private equity.
11
First and most common way to break into PE is through investment banking
12
and this is because PE firms want people who are able to immediately run deals
13
and build financial models without a lot of mistakes or training
14
and so I would say over 90% or
15
so of all private equity investors at any firm usually have an investment banking background either from an analyst program
16
or a post-MBA associate program.
17
The second way to break into private equity is by going through management consulting
18
but most consultants fit better into operational roles where they work on portfolio companies for a private equity firm
19
and so if you want to join the investment team as a consultant you just really need to hustle
20
and most of those spots go to the top consulting firms which are McKinsey, Bain, and BCG.
21
With all this said there are consultant friendly PE firms such as Bain Capital,
22
Advent, EQT, and Hellman and Friedman but as you can see consultants are the minority of the investors at any PE firm.
23
The third and lesser known way to break into PE is going straight from undergrad
24
but these spots are usually really uncommon and are really only reserved for the top Ivy League programs.
25
I know super elitist but what can you do?
26
Lastly for those who don't have an investment banking consulting or Ivy League background, what I would recommend is to go for those really really small no-name PE shops
27
and build your experience kind of directly in the industry, network hard and kind of work your way up into the better shops.
28
Now since you're watching this video I'm guessing you're interested in private equity and if
29
so I highly recommend you check out this newly announced PE certificate program being offered by Wall Street Prep
30
and Wharton which is where I'm currently getting my MBA.
31
This program is sponsored by top firms like Carlyle and KKR
32
and it's one of the first of its kind in which a leading business institution, Wharton, is partnering with the top financial modeling trainer Wall Street Prep to create a theory meets practice program.
33
Over eight weeks and at a recommended eight hours per week, you can learn at your own pace through this online course that's taught by Wharton professors, Wall Street Prep's PE program director,
34
and real estate PE investors including Martin Brand, the head of North America PE at Blackstone, and David Rubenstein, the founder of Carlyle,
35
who will cover topics like the PE deal process, valuation, how to think like a private equity professional, and more.
36
This newly announced program will run twice a year with the first one going from May 1st to June 25th
37
and if you're interested be sure to use my code RARELIQUID
38
because you'll get a few hundred dollars off and I'll leave a link to all of this down in my description below.
39
Next up let's talk about the recruiting process
40
which is specifically more for investment bankers and also some management consultants
41
and this can be broken down into on-cycle and off-cycle recruiting.
42
The on-cycle process is pretty crazy in the sense that it starts
43
and wraps up within the first six months of your job as an investment banking analyst
44
so by the time of around December
45
or earlier you already know what private equity job you're going to have when your two-year analyst program ends.
46
What kicks off the whole on-cycle process are headhunters who are hired by PE firms to just stalk analyst emails
47
and somehow get a list of all of them and all the top banks.
48
I remember when I was just one to two months into the job at JPMorgan, I somehow got emails from all the top top headhunters asking me if I was interested in on-cycle recruiting.
49
Names of the most popular headhunters include CPI, Dynamic Search Partners, SG Partners,
50
Henkel, Amity, and Oxbridge and it's super important to actually maintain good relationships with them
51
so they can send you the best opportunities.
52
Back when I started banking in 2015, it was more normal to get your offer around December
53
but nowadays it's closer to September and that's because PE firms are
54
so competitive as soon as one firm starts recruiting everyone else starts
55
and then the whole process kind of wraps up in one to two weeks.
56
Now you might be wondering why PE firms give offers to
57
investment bankers who have only worked for a few months
58
and that's because they know
59
that investment bankers as long as they go through the two-year
60
analyst program will be trained monkeys who will be able to crush excel models
61
and run deals and so that's why PE firms give out these offers super early
62
and try to attract the best talent ASAP.
63
This means that investment banking analysts who are just ramping up on their jobs
64
and already working demanding hours also need to prepare for recruiting
65
and I've heard some horror stories in the past where an investment banking analyst was at a Halloween event
66
and then got a notification at night
67
that they needed to be at a super day for a
68
private equity firm the next day at 8am to go through six interviews and an LBO modeling test.
69
All the best and top private equity firms fill most
70
if not all of their spots during on-cycle recruiting
71
but anything outside of on-cycle recruiting in those first six months after you start your job as an investment banking analyst, the rest of that is called off-cycle recruiting.
72
Off-cycle recruiting is a lot more spontaneous and headhunters will continually just reach out whenever new opportunities arise.
73
Unlike on-cycle recruiting which is usually quick and painful, off-cycle recruiting is more like slow and potentially painful
74
because PE firms can take more of their time to find the best candidate
75
because they're not in a mad rush like the PE firms are during on-cycle recruiting.
76
If you're If you're interested in breaking into investment banking first in order to eventually make your way to private equity, I've been working extremely hard on my own how to get into banking course.
77
I think it's gonna be a great product for anyone interested in banking
78
and I'm giving 50% discounts for those who sign up early using my link down in the description below.
79
I'm also selling the resume and cover letter that got me into JPMorgan at rareliquidcareers.com.
80
Feel free to check those out if you're interested.
81
The third thing you have to know for breaking into PE is knowing what you want
82
and it's not enough to just know that you want to break into private equity.
83
Wanting to work in private equity because you want to date models and drink champagne bottles is not enough and spoiler alert, that doesn't come with the job anyway.
84
First of all, of course, you need to understand what private equity is, what the deals are like, and what the business model is and if you want to get more of a beginner's overview of private equity,
85
you can check out this video right here.
86
It's also important to study the history of the industry.
87
So, for example, you should know the fact that private equity firms, when they first came about, created a new financial engineering technique called the leverage buyout
88
or LBO and they were able to generate IRRs
89
or returns of 30% but nowadays firms are able to generate somewhere closer to 15%
90
and that's because there's just so much dry powder and
91
so much competition amongst private equity firms for the best targets for investments.
92
Once you have a good sense of the job you need
93
to know specifically what type of PE firm you're interested in with some of the main components being the investment strategy, geography, industry focus, and firm size.
94
Two books I highly recommend are Barbarians at the Gate
95
which is about the formation of KKR and the largest LBO in the 1990s
96
and King of Capital which is about the creation of Blackstone.
97
The more you know what you want
98
and the more specific you can be the better the conversations will go with your headhunters and with investors during interviews.
99
The next consideration of breaking into private equity is having an investor mindset by thinking and sounding like an investor.
100
In investment banking, you actually don't do a ton of critical thinking
101
when compared to private equity and my private equity friends always tell me that even though they work less hours, each hour they work is just so much more demanding
102
and requires so much more critical thinking that it's usually a lot more tiring.
103
But imagine how tired we are.
104
Imagine how tired we are.
105
This is because in investment banking, once your client sells itself or buys another company, that's pretty much it and you're kind of done.
106
But in private equity, once you buy a company, you're stuck with that company for the next five to seven years
107
and you better generate some good solid returns and execute on your plans.
108
Otherwise, you're not going to generate those returns.
109
Your investors will be pissed and they're going to pull their money, which means no money for you.
110
In terms of money, we have no money.
111
And so while in investment banking, you might have some words on the slide that talk about cost synergies or risks.
112
When you're in private equity, you're going to actually have to shut down some parts of businesses at sometimes fire people
113
and in general just make really really hard tough decisions.
114
Private equity firms put up their own capital into their investments
115
and so they have a lot of skin in the game
116
and so it's very important for you to think like an investor.
117
I need more than I originally asked.
118
This isn't a handout club, it's an investment club.
119
Personally, I think the best way to develop this mindset is
120
to just start investing yourself usually in the stock market
121
because that's most accessible and you don't have to put up a ton of money
122
but it is I think important to just put up some of your own capital, know what it's like to have some skin in the game
123
and I would also recommend investing in individual names just so that you force yourself to do some research into companies.
124
Another way to develop this mindset is by reading books
125
and the ones I particularly recommend are The Intelligent Investor
126
and The Essays of Warren Buffett and that's just
127
because he is like the king of all investors
128
and he does invest in a lot of stocks
129
but he also does a lot of buyouts as well
130
and they're not leveraged buyouts but these are good foundational books for everyone to read to become better investors.
131
The third way is to just talk to as many investors as you can
132
so you can just gain a lot of exposure
133
and just soak in their knowledge
134
and I actually recently interviewed my classmate who worked in private equity
135
and I'll leave a link to that video down in the description below.
136
Lastly, another thing you can do is just formulating investment thesis on the companies
137
that you really like
138
or participating in case competitions like stock pitches for you to really learn how to research into companies
139
and think about what makes them good investments.
140
Last but not least, to break into private equity you're going to need to build a strong technical skill set.
141
Most private equity interview processes are going to have either a short
142
or long LBO modeling test with short ones being ones
143
that don't require three statement modeling and usually last one to 1.5 hours.
144
Longer LBO modeling tests can really vary depending on what kind of information they provide
145
so for example you might have a three hour LBO modeling test where they give you some assumptions
146
or you might have a five hour long test where they give you a 10k for a company for background info.
147
For these longer tests they may also make you write a memo
148
or create some slides for you to kind of analyze your findings and
149
so it's also really important to understand for shorter LBO tests
150
they're kind of testing to see how you handle some pressure
151
and how quickly you can create models without making a lot of mistakes
152
while for longer form LBO tests they're really trying to see how how you think more critically.
153
I've also created a step-by-step tutorial on how to build a simple LBO
154
that would be representative of a more shorter form LBO test
155
so you can check out that video if you'd like as well.
156
Alright so that wraps up the five main considerations for breaking into PE
157
but just as a friendly reminder
158
if you're interested in breaking into the industry be sure to
159
check out the PE certificate program that's being offered by Wall Street Prep and Wharton
160
and lastly in the next screen you're going to see a
161
video about the day in the life of a private equity associate be sure to check
162
that video out if you're interested that said thank you all
163
so much for watching hope to catch you all in the next video thanks so much and peace out.
✨ Рекомендуемое видео
C13
101 предложений
3.3k
Business EnglishInterview EnglishUniversity Students
C12
331 предложений
Private Equity Pays On Day One. They Still Said No
Business EnglishWorking Adults
B22
585 предложений
Asking Billionaire Women How They Got RICH!
Business EnglishInterview EnglishUniversity Students
C11
111 предложений
Financial Analysis Fundamentals: How to Analyze Financial Statements Like a Pro Part 7 | CFI Course
Business EnglishUniversity StudentsWorking Adults
C14
24 предложений
Financial Analyst: Top 3 Interview Questions & Answers
Business EnglishInterview EnglishUniversity Students
C111
283 предложений
How To Speak Like The 1% Elite
American AccentBusiness EnglishInterview EnglishUniversity Students
C12
207 предложений
The Entry-Level Job Crisis
Business EnglishInterview EnglishUniversity Students
B213 предложений
What the Best Pitch Decks Have in Common with Mike Vernal (Sequoia Capital)
Business EnglishInterview EnglishUniversity Students
B26
92 предложений
How to be a RECRUITER with no EXPERIENCE?! Explained by Recruiter
Business EnglishInterview EnglishUniversity Students
B23
99 предложений
Private Credit: The Secret Industry Taking Over Wall Street
Business EnglishUniversity StudentsWorking Adults
B26
35 предложений
Steven Bartlett’s Secret To Business Success (Hint: It’s Not Hard Work)
Business EnglishInterview EnglishUniversity Students
B22
206 предложений
How Thiel Fellowship Changed My Life - OYO Rooms Founder Ritesh Agarwal
Business EnglishInterview EnglishHigh School Students
Лексика и советы по произношению к этому уроку
В этом видео 163 предложений и 2404 слов для шедоуинга. Речь длится 11:12. Говорящий говорит быстро, около 215 слов в минуту, поэтому звуки часто сливаются и сокращаются. 82% слов входят в 3000 самых частых слов английского языка; остальные стоит разобрать перед занятием.
Ключевая лексика этого видео
15 слов из видео, которые стоит выучить, с произношением и значением:
| Слово | Произношение | Значение |
|---|---|---|
| equity существительное | /ˈɛk.wɪ.ti/ | справедли́вость, беспристра́стность |
| investor существительное | /ɪnˈvɛs.tə(ɹ)/ | инве́стор, вкла́дчик |
| recruit глагол | /ɹɪˈkɹut/ | вербова́ть, завербова́ть |
| consultant существительное | /kənˈsʌl.tənt/ | консульта́нт, консульта́нтка |
| consideration существительное | /kənˌsɪd.əˈɹeɪ.ʃən/ | рассмотре́ние, размышле́ние |
| generate глагол | /ˈd͡ʒɛn.ə.ɹeɪt/ | порожда́ть, производи́ть |
| banker существительное | /ˈbæŋkəː/ | банки́р, банки́рша |
| invest глагол | /ɪnˈvɛst/ | вкла́дывать, вложи́ть |
| wrap глагол | /ɹæp/ | завора́чивать, заверну́ть |
| consult глагол | /ˈkɑnsʌlt/ | обсужда́ть, обсуди́ть |
| mindset существительное | /ˈmaɪn(d)ˌsɛt/ | склад ума́, о́браз мы́слей |
| newly наречие | /ˈnuli/ | вновь, за́ново |
| associate существительное | /əˈsoʊʃi.ət/ | партнёр, партнёрша |
| painful прилагательное | /ˈpeɪn.fl̩/ | боле́зненный, мучи́тельный |
| slide существительное | /ˈslaɪ̯d/ | го́рка |
Фразовые глаголы, которые вы услышите
| Слово | Значение |
|---|---|
| check out глагол | проверя́ть, прове́рить |
| put up глагол | ста́вить |
| wrap up глагол | завора́чивать, заверну́ть |
| call off глагол | отзывать, отменять |
| give out глагол | обнаро́довать, объявля́ть |
| reach out глагол | связаться |
| shut down глагол | выключить, остановить |
| sign up глагол | запи́сывать, записа́ть |
Грамматика в этом видео
Конструкции, которые говорящий использует чаще всего, с точными словами из видео:
| Конструкция | В видео |
|---|---|
| Пассивный залог be + причастие прошедшего времени — важно, что происходит, а не кто это делает | are really only reserved · being offered · is sponsored |
| Придаточные определительные who / which + предложение — уточнение о человеке или предмете | people who are · firms which are · those who don |
| Present Perfect have/has + причастие прошедшего времени — прошлое действие, важное сейчас | haven't worked · have only worked · I've heard |
Произношение, на которое стоит обратить внимание
Говорящий использует 42 сокращённых и редуцированных форм, например you're, I'm, they're. Произносите их коротко, так, как слышите.
- Звуки «sh» и «zh»: consideration /kənˌsɪd.əˈɹeɪ.ʃən/, associate /əˈsoʊʃi.ət/, potentially /pəˈtɛnʃ(ə)li/, rush /ɹʌʃ/, exposure /ɪkˈspəʊ.ʒə(ɹ)/
- Длинные слова — следите за ударением: consideration /kənˌsɪd.əˈɹeɪ.ʃən/, associate /əˈsoʊʃi.ət/, potentially /pəˈtɛnʃ(ə)li/, certificate /səˈtɪf.ɪ.kɪt/, participate /pɑːˈtɪs.ɪ.peɪt/
Как заниматься с этим видео
- Прослушайте всё видео один раз молча и выпишите незнакомые слова.
- Начните со скорости 0,75×, повторяйте предложение за предложением и вернитесь к обычной скорости, когда станет легко.
- Запишите себя и сравните с оригиналом, обращая внимание на такие слова, как equity, investor, recruit.
Что такое техника Shadowing?
Shadowing — это научно обоснованная техника изучения языка, изначально разработанная для подготовки профессиональных переводчиков и популяризированная полиглотом доктором Александром Аргуэльесом. Метод прост, но эффективен: вы слушаете аудио на английском от носителей языка и немедленно повторяете вслух — как тень, следующая за говорящим с задержкой в 1–2 секунды. В отличие от пассивного прослушивания или грамматических упражнений, Shadowing заставляет мозг и мышцы рта одновременно обрабатывать и воспроизводить реальные речевые паттерны. Исследования показывают, что это значительно улучшает точность произношения, интонацию, ритм, связную речь, понимание на слух и беглость речи — что делает его одним из самых эффективных методов для подготовки к IELTS Speaking и реального общения на английском.