Private Equity MBA
December 12th, 2008It’s no surprise advanced education is fairly common up and down the professional ranks of most private equity firms. Whether it’s an MBA, JD, or even the PhD, you’ll find plenty of representatives.
The most popular advanced degree in the private equity world certainly has to be the MBA, but how common is it?
Scanning available title and bio information within Private Equity Database yields the following;
| Title | Sample Size | w/ MBA | % |
|---|---|---|---|
| source: Private Equity Database | |||
| “CEO” | 253 | 99 | 39% |
| “Partner” | 2,891 | 1,223 | 42% |
| “Director” | 3,481 | 1,372 | 39% |
| “Principal” | 1,232 | 585 | 47% |
| “Vice President” | 1,416 | 575 | 41% |
| “Associate” | 1,955 | 352 | 18% |
| “Analyst” | 416 | 38 | 9% |
So while getting your MBA can’t hurt as you move up at the firm, the good news for those that decide against further business schooling, is that you still have plenty of company . . .
December 12th, 2008 at 2:18 pm
[...] Do You Really Need an MBA: Surprisingly, MBAs in PE are not as common as you’d think, according to PEdatabase. Check out their mildly unscientific study, which shows only 39% of private equity CEOs and only 42% of Partners have an MBA. (Private Equity Database) [...]
December 13th, 2008 at 2:36 pm
Another great find, I was really surprised by this data. I thought that the percentage holding MBAs would be a lot higher, good news for a lot of people I’ve talked to that are concerned they won’t be able to work in the industry without one.
Theo O’Brien
http://PrivateEquityBlogger.com
December 15th, 2008 at 9:49 am
In PE/VC I would agree that their are many other factors that can contribute to success for non MBAers although I think a good understanding of marketing, strategy and finance from a more acedemic perspective would be helpful and allow PE pros to think for themselves a little bit more rather than following the herd.
I finished my MBA a few years back at a more obscure B-school and I can assure you that non of us were blinded by the debt fueled bubble that was occuring all around us. I think a lot of upcoming PE blowups could have been saved with a little less group think and a good MBA education should help not hinder that.
December 15th, 2008 at 9:53 am
I have been wondering whether an MBA is valuable in the PE/VC business, from an effectiveness perspective. Similarly for other education.
(a) what is the ratio of MBAs at sub-par PE (and VC) firms, and
(b) what is the ratio of MBAs among those being let go at shrinking firms.
It would also be interesting to know the type of education [and professional development (industry experience)] among the most successful PE pros.
Does your raw data have some clues for us?
December 15th, 2008 at 1:02 pm
Personally I think anyone in PE/VC must have some hands-on experience preferably with startup to midstage company(s). Not to discount the value of a MBA, but a couple years getting your ass kicked at a startup is invaluable experience (successful or not) … especially when your job is to fund and grow companies.
December 24th, 2008 at 2:06 am
mba education…
Well spoken. I have to research more on this as it is really vital info….
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