So most PE firms probably have around 5-15 employees. They don’t require too much manpower unless they’re trying to close a lot of deals. The main tasks are sourcing the asset, conducting diligence, negotiating terms, and supporting the asset post investment. This can all be done with an analyst, an associate, a VP, and a Partner/MD, each focusing on things from networking/relationship building to making financial models and other adhoc work.

I think PE just become a very popular way for wall street grads and MBA types to make a decent living without necessarily having to be a good investor (PE funds don’t present their full returns until 10+ after the fund has closed).