Private Equity Hours: Inside The 60/70 Hour Workweek (2024)

Private equity is one of the most challenging jobs to get into.

The competition is fierce, with thousands of other applicants competing for the same job and willing to work long hours.

But how many hours are we talking about?

That’s where I come in. I’m here to help give you a better understanding of the type of work you can expect and how many hours you’ll need to put in to make it a success.

Let’s get into it.

How Many Hours Do Private Equity Analysts Work?

At the start of your career in private equity, the workload can be intense, especially as an analyst. Analysts are the backbone of the early deal process, responsible for sourcing potential investments, conducting initial research, and preparing the groundwork for more senior team members. On average, you can expect to log around 60-70 hours per week.

However, these hours are highly dependent on deal activity. During periods when multiple deals are in motion, or when a live deal is in progress, your hours can easily extend beyond 70 hours, sometimes reaching up to 80 hours a week. The work requires a high level of attention to detail and the ability to manage tight deadlines, which often means long days and late nights.

Analysts are also frequently involved in the less glamorous but crucial tasks, such as cold-calling, networking, and data gathering, which can add to the workload. While the hours can be grueling, the experience you gain at this stage is invaluable, laying the foundation for your future roles in private equity.

During quieter periods, if they occur, you might find some relief with a lighter workload, possibly around 50-55 hours a week. However, these slow periods are rare, and analysts should be prepared for the long haul, especially if they aspire to advance in the industry.

How Many Hours Do Private Equity Associates Work?

This can vary quite a bit depending on the size of the firm you work for and how many investments you have on the go.

Generally, as an associate, it takes a lot of groundwork to show that you are dependable and trustworthy. Investors need to know they can rely on what you say and the analysis you’re producing.

The average during a busy time for associates and analysts is usually around ~60-70 hours per week. But it’s all dependent on how many deals and investments are on the go.

The above hours will vary based on if there’s a live deal. Basically, everything goes on hold, and you need to be available 24/7. I mean that quite literally. If someone calls at 11 pm because of a time difference or market change, you must be ready to jump into work. You can expect to work 80+ hours a week when live deals are in motion.

If there is a “slow time,” take advantage; it isn’t likely to happen very often. Here you can work about 50 hours a week as an associate in private equity.

What kind of work do you do in private equity as an associate?

Your work spectrum is quite broad as a private equity associate. Here is some of the work you can expect to do.

• Sourcing investments: Firms make money by making new investments; that’s the bottom line. Part of your job is to find good opportunities for your company to invest in. Especially if you’re in growth equity, this is a big part of your job.
• Meeting with management teams: Establishing contact with management teams to inquire about a transaction is the first step.
• Deal execution: Once you’ve sourced an investment, it’s your job to assess and execute new investments through valuation, investment memo writing, and modeling.
• Supporting investor relations: Associates will also be tasked with helping support your investors relations team. You may need to prepare pitch decks on new deals and/or supply data about ongoing investments.
• Monitoring portfolio companies: You need to ensure the portfolio companies are running smoothly and hitting their plans. You will be involved in the financial planning and analysis. However, if there is more work to be done in the day-to-day due to staff shortages or a big sale process, you might need to help with that. You’ll also be involved in preparing for quarterly board meetings.
• Conducting market research: Keeping apprised on what’s happening with competitors and overall market trends is critical.

The above can vary a lot based on private equity associate roles or career progression. For instance, analysts do mainly “sourcing,” while partners and principals are there to woo prospective clients and get them on board.

You’ll need to get used to putting the groundwork in and someone else closing the deal. But if you stick at it, you’ll get to the good stuff.

How Many Hours Do Senior Private Equity Folks Work?

As you progress in the industry, you’ll begin to have less time in office.

For instance, while associates are logging ~60 hours on typical weeks. I’d estimate the vast majority of principals or managing directors are only in the office for “typical hours” of around ~50 hours a week, unless there’s a live deal.

You may also find your requirements change as you move up. You’ll likely work more from home and travel quite a bit to get clients on board.

It’s relatively safe to say that you can take off ~5 hours per week off for each promotion you get; however, while more senior roles are not “in office” they are likely doing more travel and are “always on” thinking about work and deals, etc.

How Private Equity Hours Compare to Investment Banking

Most private equity associates have an investment banking background. So, they’re ready to hit the ground running from day one.

An associate understands the market, financial models, and what to look for. This makes them extremely valuable to private equity firms.

The good news? Investment bankers tend to have longer hours than associates in private equity. So, if you’re jumping off the investment banking train, you’ll enjoy the shorter hours in the office in private equity.

However, this doesn’t mean that the work is any easier. You’ll be putting in a lot more thought and care at work.

During a live deal, you may even work longer hours than you did in investment banking, depending on what stage the deal is at.

The reason why?

The level of responsibility goes up 10x. Private equity associates are responsible for so many moving pieces on a deal, and that means a lot more pressure. There’s also no place to hide. In investment banking, often you can “hide” behind the fact that there’s a large deal team. Whereas, in private equity, deal teams are small and you’re expected to carry your weight.

This isn’t meant to scare you off — I actually think it’s quite exciting and more fun to have this added responsibility. However, it’s clearly not for everyone.

To summarize, while private equity hours are generally seen as more manageable compared to investment banking, several factors can influence your workload and work-life balance in this field:

• Deal lifecycle: The demands of live deals are well-known, but even after a deal closes, the work doesn’t stop. The post-deal phase often involves substantial responsibilities, such as monitoring portfolio companies, conducting performance reviews, and managing exit strategies. These tasks can extend your work hours beyond the deal-making phase, especially when unexpected challenges arise.
• Firm size and structure: The size and focus of the private equity firm can significantly affect your workload. Smaller firms, with leaner teams, may require associates to take on a wider range of tasks, leading to longer hours. In contrast, larger firms might have more specialized roles, allowing for more focused, though still demanding, work hours.
• Industry focus: The sector in which a firm specializes can also impact work hours. For instance, investing in rapidly evolving industries like technology or healthcare often requires continuous research and analysis, which can increase the time spent on due diligence and strategic planning.
• Geographic location: Lastly, the geographic reach of a firm plays a role in determining work hours. Working for a firm with global operations can mean adjusting to different time zones and managing deals across continents, which can lead to extended hours to accommodate international markets.

How Private Equity Hours Compare to Management Consulting

Some associates at a private equity firms come from a management consulting background. They have a deep understanding of working with clients and managing how companies portray themselves.

In terms of hours, management consulting usually means a lot of travel. If you’ve ever been in consulting, you know getting to clients is a massive part of the job. Many consulting jobs require travel Monday through Thursday every week.

If we compare this with private equity, your hours are primarily spent in the office, particularly at the start. You will certainly travel in private equity (to meet with investment targets, to go to conferences, to attend board meetings, etc.) but nowhere near as much as in management consulting.

While the travel will be less, the work in private equity is very stressful and demanding, so the hours you actually spend working may be more stressful or mentally demanding.

Aside from travel, other factors shape the workload and time commitment in these roles:

• Project-based vs. portfolio–based: Consulting often involves project-based work with clear end dates. In contrast, private equity requires ongoing monitoring and management of portfolio companies, which can lead to a more sustained workload.
• Pace of work: Consulting projects tend to have intense, concentrated periods of activity followed by relatively quieter phases. Private equity often maintains a steady pace of work, with varying levels of intensity depending on deal flow and portfolio company performance.
• Decision-making and accountability: While consultants offer strategic advice, private equity professionals make the final calls on substantial investments. This higher level of responsibility often translates to increased pressure and time commitment as they bear the consequences of their decisions.
• Industry focus: The specific industries a consultant or private equity professional works in can impact workload and travel requirements. For example, consulting in technology might involve frequent travel to client sites, while private equity in real estate might require less travel.

Ultimately, both management consulting and private equity demand long hours and significant dedication. While travel patterns differ, the overall intensity and responsibility levels can be comparable.

Perks of Working in Private Equity

So, after learning how much work you’ll be putting in, you’ll be happy to know that it’s not all for nothing.

As many people know, working in private equity can be very lucrative. While the long hours can be a deterrent, it’s safe to say that you are well compensated for your hard work.

The perks of working in private equity include:

• The money: Look, nobody would work this hard if there weren’t at least some sort of monetary gain. The longer you stay at a firm, the higher your earning potential. Stable employees in the investment game are like striking gold.
• High prestige: Private equity positions are so hard to get, and they pay so well, that many view them as being one of the top positions out there
• Super interesting & ambitious people: In private equity, you’ll not only be surrounded by incredible colleagues, but you’ll also get to interact with business people and portfolio companies from many interesting parts of the world (this was one of my personal favorite parts of being in the industry)
• Exit opportunities: After private equity, you can go into all kinds of positions, including finance roles at portfolio companies, leadership roles in startups, other kinds of investing, etc.

Work-life balance strategies for private equity professionals

Pursuing a career in private equity can be incredibly rewarding, but it often comes with significant stress and demanding work hours. Maintaining a healthy work-life balance is crucial for sustaining long-term success and personal well-being.

Here are some strategies to help manage the intense demands of the job:

• Integrate work and personal life when possible: Given the demanding nature of private equity, finding ways to integrate work with personal life can help maintain balance. For example, scheduling conference calls during commutes or using travel time to catch up on personal reading can help you make the most of your time. Attending industry events or conferences in desirable locations and extending your stay for personal leisure can also blend professional responsibilities with relaxation.
• Utilize “quiet” times: Make the most of your slower periods. This not only helps you grow your career but also provides a mental break from the intense deal-focused work. Consider attending seminars or simply catching up on industry trends in a low-pressure environment.
• Create a “pre–deal” routine: Establishing a pre-deal routine before diving into intense periods can help you maintain balance during the most stressful times. This could involve setting clear goals, organizing your workload, and ensuring that your personal life is in order (e.g., managing family expectations, completing personal errands). Preparing in advance can reduce the impact of high-stress periods and help you maintain some control over your schedule.
• Leverage technology for flexibility: Use technology to maintain flexibility in your work. Tools like cloud-based project management systems, mobile communication apps, and virtual meeting platforms can help you stay connected and productive without being tethered to the office. This flexibility allows you to work from different locations, manage tasks on the go, and potentially free up more personal time.
• Engage in peer support networks: Building a network of peers within the private equity industry can provide a valuable support system. Engaging with others who understand the unique pressures of the field can offer practical advice, emotional support, and a sense of community. Regularly meeting with or even informally checking in with industry peers can help alleviate feelings of isolation and provide insights into managing work-life balance more effectively.

Finding a balance between your workload and personal well-being is important not just for getting through the challenges of this industry, but also for thriving over the long run. When you incorporate these strategies as part of your routine, you’ll be better prepared to handle the demands of your job while still enjoying a fulfilling life outside of work.

FAQ

Is a private equity associate job successful?

Yes, the money in private equity is great. But apart from that, the experience is invaluable. As an associate, you really get to learn new facets of corporate finance and investing from the ground up. I felt as though it was critical to “completing” the skillset that I’d started to develop during my time in investment banking.

Is working at private equity firms demanding?

It can be. If you’ve got a live deal, you must be available at all times. The hours can be long and tedious. But as you work your way up, the hours spent in the office decrease.

Is private equity a secure job?

Getting into private equity firms is challenging. Roles are few, and thousands are vying for each job.