Friday, February 17, 2006

Where is the money?

Going Private
Hotshot managers are fleeing public companies for the money, freedom, and glamour of private equity

Business school students, meanwhile, are angling to get on the partner track. At the University of Chicago, says Julie Morton, associate dean of MBA career services, résumé writing courses for private-equity candidates are oversubscribed. Stanford University is seeing more interest. More 2005 Stanford MBA grads went into private equity than any other area except consulting and consumer products and services.

These students, not yet wary of the public life, are chasing the huge dollars in private equity. The median annual compensation for a 2005 Harvard Business School grad who went to work for a private-equity firm was $174,500, compared with $135,000 for the rest of the class. Last year's Stanford grads did better, with median total compensation of $232,000, compared with $140,000 for the class. Some private-equity funds pay as much as $300,000 to fresh MBAs.