The 6 MBA Programs for a Career in Private Equity

The 6 MBA Programs for a Career in Private Equity

Private equity (PE) has long been a coveted career path for MBA graduates, and this trend has accelerated over the past 10-15 years. As the largest PE firms such as Blackstone, KKR, and Carlyle have expanded, they have significantly increased their hiring of MBA graduates and summer interns. This growth has led to a rise in the percentage of MBA graduates entering private equity roles, with top schools like Wharton, Stanford, Harvard, and Columbia seeing a surge in graduates accepting PE positions, both as internships and full-time roles.

While an MBA from a top program (H/S/W) is often a prerequisite for the most prestigious PE firms, opportunities remain more limited compared to fields like investment banking. However, PE firms look for candidates with strong deal execution skills, financial modeling expertise, and the ability to source and evaluate investment opportunities. Prior entrepreneurial or operating experience in a relevant industry can also provide a competitive advantage. For those without prior PE experience, breaking directly into PE post-MBA can be challenging.

1. Harvard Business School (HBS)

Placement: 17% (2023), 15% (2022), 14% (2021), 18% (2020), 15% (2019)
Placement (Avg 5 Years): 15.8%
Median Base Salary: $185,000
Median Signing Bonus: $30,000 (42% receiving)
Median Performance Bonus: $181,250 (85% receiving)

Harvard Business School is widely regarded as one of the best MBA programs for consulting and private equity. HBS has strong ties with leading firms like KKR, and its prestigious brand, extensive alumni network, and emphasis on case studies provide MBA graduates with an ideal foundation for private equity careers. The HBS PE/VC Club is one of the largest and most active student organizations, offering valuable networking opportunities with top PE firms. The high placement rate and consistent recruiting results reflect HBS’s dominance in the PE field.

2. Stanford Graduate School of Business (GSB)

Placement: 17% (2023), 14% (2022), 15% (2021), 15% (2020), 16% (2019)
Placement (Avg 5 Years): 15.4%
Median Base Salary: $215,000
Median Signing Bonus: $27,500
Expected Median Performance Bonus: $160,000

Stanford GSB is another top MBA program with a strong track record in private equity. Stanford's robust curriculum, which includes courses like “Private Equity: An Overview of the Industry” and “Building a Money Management Business,” is tailored for those interested in PE careers. The GSB Impact Fund offers hands-on experience in evaluating startup investments, a growing area of interest for many PE firms. Stanford’s relationship-driven culture, emphasized by its "touchy-feely" approach, aligns well with the interpersonal dynamics crucial in private equity. This, combined with its prestigious brand name and networking opportunities, makes it a top choice for those pursuing PE roles.

3. Wharton School | University of Pennsylvania

Placement: 14% (2023), 12.6% (2022), 11.1% (2021), 11.9% (2020), 11% (2019)
Placement (Avg 5 Years): 12.12%
Median Base Salary: $189,322
Median Signing Bonus: $25,000
Expected Median Performance Bonus: N/A

As the historical finance school, Wharton has long been considered one of the best MBA programs for a career in private equity. Wharton offers an extensive curriculum with courses specifically focused on private equity, such as “Advanced Topics in Private Equity” and “The Finance of Buyouts and Acquisitions.” The Wharton PE/VC Club and the renowned Wharton PE/VC Conference further enhance students' opportunities to network with top PE firms. Wharton’s specialized coursework, strong recruiting pipeline, and comprehensive training make it a top destination for aspiring PE professionals.

4. Booth School of Business | University of Chicago

Placement: 9.1% (2023), 7.1% (2022), 6.8% (2021), 6.4% (2020), 6% (2019)
Placement (Avg 5 Years): 7.08%
Median Base Salary: $165,000
Median Signing Bonus: Insufficient Data
Expected Median Performance Bonus: N/A

The University of Chicago Booth School of Business is well-regarded for its strong connections to middle-market private equity firms, especially in Chicago and the surrounding Midwest region. Booth’s quantitative focus and emphasis on financial analysis make it an ideal choice for candidates interested in the analytical side of private equity. Although Booth has a smaller percentage of graduates entering top-tier PE firms compared to HBS, Stanford, and Wharton, it remains an excellent choice for those seeking opportunities in middle-market private equity.

5. Kellogg School of Management | Northwestern University

Placement: 9.81% (2023), 4.33% (2022), 5.2% (2021)
Placement (Avg 3 Years): 6.44%
Median Base Salary: $190,000
Median Signing Bonus: Insufficient Data
Expected Median Performance Bonus: N/A

Kellogg has a strong presence in middle-market private equity, particularly in Chicago. The school’s team-oriented culture and focus on leadership and strategy align well with the collaborative nature of private equity. Kellogg also has a dedicated PE/VC Club that offers networking events and recruiting opportunities, though its placement rate in top PE firms is lower than some of the other top-tier schools. Nonetheless, Kellogg offers strong opportunities for those seeking to break into private equity or venture capital.

6. Columbia Business School

Placement: 5.6% (2023), 5.3% (2022), 4.1% (2021), 3.6% (2020), 7% (2019)
Placement (Avg 5 Years): 5.12%
Median Base Salary: $175,000
Median Sign-On, Year-End, and Other Guaranteed Compensation: $71,000 (51.6% receiving)

Columbia Business School also remains a strong contender for aspiring private equity professionals. While its placement rates in top-tier PE firms are lower than those of HBS, Stanford, or Wharton, Columbia offers access to excellent networking opportunities through the Columbia Private Equity Club and its location in New York, which is a hub for private equity firms. Columbia also offers a solid finance curriculum, ensuring that students are well-equipped with the analytical and deal-making skills needed to succeed in PE careers.

Conclusion: Choosing the Best MBA Program for Private Equity Careers

The path to a private equity career is competitive, with only a handful of MBA programs for private equity consistently placing graduates in top-tier firms. Schools like Harvard, Stanford, and Wharton dominate the PE recruitment landscape, with strong placement rates and an unparalleled network of alumni in the industry. However, Booth, Kellogg, and Columbia also offer excellent opportunities for those seeking careers in middle-market private equity. Each of these programs provides the tools, resources, and networking opportunities necessary for a successful transition into private equity, but candidates must carefully choose a school based on their own goals, interests, and geographical preferences.

If you’re considering a career in private equity and need help deciding on the right MBA program for consulting, Crimson’s expert advisors can guide you through the admissions process. Contact us today to begin your journey toward a successful career in private equity!

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