Breaking into private equity

Hi,

Sharing my experience based on working in BCG's PE practice and having friends in PE as well.

• The most typical path to PE (deal team) is through IB, they recruit most of their junior analysts after ~2-3 years in IB
• Some PE firms do hire from top MBAs (e.g. H/S/W) but even then the preference is for IB experience prior
• It is possible for consultants at MBB to make the switch, but you need to switch relatively quickly e.g. ~3 years in MBB, before you reach Manager level
• Once you are at Manager, it becomes very difficult to switch to deal team
• If you are thinking of Ops team (i.e. value creation), then the switch is more flexible (you can join junior or more senior), and a Principal role is possible 

Hi there,

That’s a great question and one many consultants in the region think about. Private equity in the Middle East is smaller compared to Europe or the US, but the market has been growing steadily. Most activity is concentrated in UAE and Saudi Arabia, where large sovereign funds (like PIF, Mubadala, ADQ) and regional players (Gulf Capital, Investcorp, Waha Capital) act as the main sources of private equity or growth capital.

The most common path from consulting to PE here is to join either a sovereign fund, a PE arm of a family office, or a growth and strategy investment team inside one of these funds. Networking and internal referrals matter much more than cold applications, so start building relationships with investment professionals early.

In terms of compensation, it varies widely. At the Principal level, total annual compensation can range roughly between USD 400K–600K in base and bonus at the larger sovereign or regional funds, with carried interest or long-term incentives on top depending on the fund size. Smaller funds or family offices would likely pay less but may offer more flexibility and faster progression (about USD 250K–400K). Please take these numbers with a pinch of salt and do your own research!

If you are serious about this move, position your BCG experience around deal support, commercial due diligence, and value creation. That is what PE recruiters in the Middle East look for first.

Best of luck!

Hi there,

I would be happy to share my thoughts on your questions:

• First of all, I wonder whether you're certain that you want to move into private equity, as it sounds more like you want to go there because you see many colleagues doing so, rather than out of a genuine interest. What is your motivation, and why are you asking this now if you plan to stay at BCG until Principal level?
• Moreover, contrary to what other coaches have said, most mid- and large-cap PE firms hire almost equally from consulting and investment banking, so your BCG background would actually not be considered a disadvantage.

If you would like a more detailed discussion on your specific situation, please don’t hesitate to contact me directly.

Best,

Hagen

I see you've already received some helpful answers. 

Two other things I'd suggest:

1. Find headhunters / private recruiters who can do the job for you. i.e., find relevant firms you could apply to. Typically, they then charge the employer (it's advantageous for the employer as well since they will likely spend less than on their traditional recruiting process). 

2. Identify ex BCGers who work now in ME in PE and have a chat with them. If you have 3 calls, I'm sure you're already know 80% of what you need to know about how to navigate your exit into PE.

Best,
Cristian

Hi there,

If you want to exit into PE, try to see if you can get to the semi-ringfenced PIPE team, so that you can focus on work that is more relevant for PE. 

As for exit position, don't leave too late. It gets harder. If you exit as a consultant, or max early PL, I think it would be more feasible. 

Best,

Emily