One of the most common struggles for candidates preparing for roles in private equity is deciding which industry to focus on. During a recent coaching session, Kaushik Ravi addressed this question head-on, urging candidates to rethink how they define industry interest.
Kaushik made it clear: when evaluating industry focus, the question isn’t “What’s trending?” or “Where’s the hiring?” The real question is “What sector am I willing, and excited, to go 10 layers deep on?”
Going Beyond Surface-Level Interest
Too often, candidates say they’re interested in industries like healthcare or consumer goods, without having gone beyond the headlines. Kaushik challenged that surface-level thinking.
In private equity, he explained, an investor’s job is to conduct granular diligence. That means asking:
- How many patients does this hospital handle per day?
- How is a retail company managing its shelf turnover?
- What inefficiencies exist in the current supply chain?
Anyone claiming an interest in a sector must be excited to do this type of work, because that’s the daily reality. Sector interest isn’t just thematic. It has to be practical, detailed, and sustainable.
Start With What You Know
Kaushik recommended a practical exercise: candidates should pick 2–3 companies they’ve worked on in the past and ask themselves if they would want to pursue those types of deals again, this time as an investor.
If the answer is yes, and if the candidate has unique insight or experience in that space, that’s a strong starting point. If not, it’s a signal to explore other areas.
In his words, the goal is not to start from scratch, but to “build a thesis on top of what you already understand.”
Be Focused, Not Rigid
While depth matters, Kaushik also warned against being too narrow. Candidates who present an overly specific focus, such as only investing in biotech diagnostic tools in the Midwest, can come across as unmarketable.
The right approach, he explained, is to strike a balance: demonstrate a few strong areas of interest (e.g., healthcare services, diagnostics, pharma distribution) while remaining open to adjacent sectors. This shows thematic clarity without eliminating potential fit across multiple funds.
Industry Edge is Your Differentiator
Firms don’t expect candidates to know everything. But they do value “edge”, a unique perspective based on lived experience.
That could come from previous M&A exposure, operations roles, or even prior consulting projects. What matters is being able to say, with confidence, “Here’s why I understand this sector better than most candidates.”
That’s the value proposition. And that’s what makes a candidate stand out in a pool of generalists.
Final Takeaway
Kaushik’s message was clear: private equity is not about general interest, it’s about detailed insight. Candidates must reflect honestly on what sectors they’re excited to dive deep into, what skills they bring, and how their past experience translates into investor judgment.
Industry focus isn’t about what looks good on paper. It’s about where a candidate can consistently add value. And identifying that space is the first step toward building a compelling and lasting career in investing.
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