Analysis: Small firms offer private equity job market bright spot – Reuters

Brian Gray

Jul 26, 2023

Landing a job in the private equity industry has become increasingly difficult, except for those willing to join smaller firms writes Maiya Keidan in Reuters. Traditionally, it has been difficult to leave behind a career at a larger firm, due to the competitive salary and growth opportunities. However, this premise is becoming less relevant, as smaller firms are gaining the ability to offer candidates more activity and shorter paths to more senior roles.

Large level buyouts by big private equity firms are hindered by many current financing and fundraising challenges. Many of these large deals struggle to close in a timely manner. Smaller firms on the other hand, need less debt to accomplish their acquisitions, which has given them an undeniable advantage amidst the recent spike in interest rates, and concerns of an economic slowdown.

“A smaller deal is less likely to be dependent on debt financing and there’s less friction on getting those transactions to the finish line,” Brian Gray, corporate partner, and Chair of Osler’s Private Equity practice, told Reuters. Brian explains that “there (are) lots of sub-$100-million-dollar transactions that are ongoing.”

This has given small firms the chance to select from a pool of talent who would have traditionally overlooked them for bigger firms.

Read the full article by Maiya Keidan published by Reuters.