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What You Ought to Know about Private Equity Jobs?

Updated on July 31, 2013

What according to you is most important for a Private Equity Job?

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Private equity is defined as the investment capital which is procured from the high net worth individuals and is utilized by different financial institutions for investing as well as acquiring the ownership equity of other companies. The primary motive of collecting this money is to raise equity while managing them to yield a lucrative return for the investors. On an average the total duration of any Private Equity ranges from 4 to 7 years.

The Fundamentals: Know your basics

In the financial world private equity has emerged as an attractive job prospect for individuals. Like many others you might be from the finance background and on the lookout for Venture Capital Jobs. Before the elements and essentials of these jobs are discussed you need to be aware of the basics. Being an aspiring professional you need to understand the basic concept of Private Equity in order to get a well-paid job.

Present Scenario: A must to know for your Private Equity Jobs

The last few years especially the last decade has shown that the Private Equity Firms are among the vital elements of any economy. These firms not only offer services but have been one of the top employment companies from the world of finance. Estimated figures suggest that the Private Equity analysts control about a trillion dollar of capital globally. They carry out the complex processes of buyout transactions or stake purchases within the public sector companies. On the other hand they are also involved in investing in attractive private companies and their projects.

Some of the popular companies where you being one of the Private Equity Head hunters might dream to have a job include KKR, TPG and Blackstone. However, there are probably hundreds of other reputed firms where getting a job could make an ideal career.

What are the basic qualifications required for an entry level Job?

This is probably one of those questions which you might be asking the experts. Like any other job, Private Equity Job-Description includes certain criteria to sort out the eligible candidates for this particular profile. For the entry level position,if you are an undergraduate you can start your role as an analyst. In case you have a master’s degree in finance i.e. MBAs start of as associates to the company.

What is the basic role of a Private Equity Analyst or a Private Equity Associate?

It is certain that once you get the job as an analyst or the associate the initial days involves going through the training process. This would basically involve the mix of the following activities:

  • Analyzing the economics of potential leveraged on a spread-sheet
  • Conducting industry research as well as screening the potential candidates for a buyout and sourcing new deals
  • Preparing adequate materials for the senior partners over a potential investment target. It may even be on a company which is already subject to an investment.
  • Lastly, it involves coordinated work, backed by research for carrying out different transactions.

As a newbie the initial days are definitely worth learning yet challenging. Most of the global private equity firms demand a great deal of dedication from its employees as the entire operation involves complex procedures of investing and analysis to yield the maximum benefits to its clients.

Going through the early phases of the Job involves interaction with eminent personalities from different chores of the financial as well as legal arena.

What are the key skills required for a Private Equity Job?

Some of the recommended skill requirements for getting a private equity job have been listed below:

  • Knowledge: As mentioned above it is important that you have enough knowledge about the specific industry. Moreover, an operating experience being a part of the industry would boost the possibilities of getting a good job . Most of the private equity companies recruit candidates who have some years of experience at smaller companies.
  • Analyzing ability: The entire task of you as the private equity employee is to analyse data and carry out different analysis on spreadsheets. The tasks are complex in nature which uses the complex “LBO model”. Although these things are taught while carrying out the operations it is recommended that you prepare to have strong analytically skills from before. Strong abilities for carrying out research such as marketing, customer satisfaction, supply chain, etc. is an additional boost
  • Management skills: Leadership and management is an essential element when it involves working in a private equity firm. The entire processing and analysis is done in a co-ordinated manner and if you have better management skills then you can expect to get a job faster and perform better. The talents include effective communications, ability to empathy, and having the ability to understand the critical elements performed within the teams so that they carry out the work in the same work flow.

What is the future of having a career as a Private Equity analyst/associate?

It would be one of those critical questions which you would definitely search before starting a career as an analyst/associate. Some of the vital things you would learn which can make a great career in the financial world include:

  • Learning about the entire process of funding equity to firms who have the potential to earn big but lack the finances.
  • Process of providing mezzanine debt which appears at the last head in a capital structure.
  • Being a part of the secondary funds which purchases the equity interests and further gets traded
  • Being a part of funds which are invested in other funds i.e. funds of funds
  • Learning about investment on turnaround projects where the bankrupt or financial troubled companies are offered crisis management.

There are loads of interesting things to learn and get educated on. A wide area of opportunity is there to be grabbed for the ones who are interested in enhancing their knowledge in the world of finance.


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    • MsDora profile image

      Dora Weithers 

      5 years ago from The Caribbean

      Thank you for explaining private equity along with the job description. Not surprised that the industry is that lucrative! Hope they can contribute to national recovery and progress!


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