Getting into a private equity or PE role is the dream of many! Private equity is a competitive and rewarding career path. The candidates looking forward to getting into this profession must develop analytical and networking skills. Private equity will need you to work with investors and use funds wisely to invest in top performing companies. PE firms aim to create a profitable proposition.
Private equity firms seek dynamic and motivated professionals skilled enough to perform a challenging role in the PE industry. Though the workforce in a PE company is smaller compared to investment banks, there are some large private equity firms, too, with large market caps.
Private Equity Jobs
Here are the different levels of PE jobs.
- Junior associate: Also called Junior Analyst, this is the entry-level position. This role focuses on performing routine tasks like data review, financial modeling, and working with a large amount of data.
- Senior associate: One level up of a junior analyst, the senior analyst role is managing deals independently. They handle the deal from start to finish, gather new ideas, and make responsible decisions.
- Vice President: Vice presidents focus on maintaining communication, client relations, and giving presentations. They need technical skills like negotiation, leadership, management, and mentorship.
- Director: Directors in a PE firm are responsible for fundraising and facilitating deals. While most of the deal is handled by the VP and other team members, the director steps in for the final negotiation. They also make major company decisions.
- Partner: Partners take care of company representation, funding activities, managing top clients, maintaining relationships with key people, etc. Partners also invest their wealth into the company and talk to LP (Limited Partners) to provide funding.
A Career in Private Equity
Since few PE jobs are in the market, there is tough competition among professionals. However, honing your skills and interning in a related field will help you reach your goal. The good part is that private equity professionals are known to advance quickly in their careers and reach the ladder soon. To start a thriving private equity careers, you need to create a strong foundation of knowledge and skills.
Attain a bachelor’s degree.
Private equity needs you to have a bachelor’s degree in finance-related majors. Study economics, finance, mathematics, statistics, accounting, etc.
Gain experience
Graduates without work experience are not hired for a private equity role. Private equity firms employ entry-level associates with experience of one to two years in the banking or investment industry. So, gain experience as an investment banker, financial consultant, or financial manager. Having experience ensures you create an edge and land a better job.
Earn Certification
To advance your education and achieve a competitive edge, consider getting a private equity certification. Earning such certifications can grow your knowledge and make you more valuable to potential employers. For example, Chartered Private Equity Professional or CPEP qualification by USPEC (United States Private Equity Council) can help you achieve your goals. CPEP enhances knowledge and makes the professionals ready for the PE and VC role.
Develop technical and behavioral skills.
Acquiring a finance, business, or related field degree is not enough. Besides this, you must hone your skills in calculation, financial modeling, data analysis, and valuation—research and study investment concepts and techniques. Read several case studies, analyze investment opportunities, gather fresh perspectives, and determine your investment focus and strategy. Work on your financial acumen and strategic thinking skills to help with investment decisions. Written and verbal communication skills are also essential to present your ideas impressively to companies.
Prepare for Interviews
Do not leave any stone unturned while preparing for the private equity interview. The recruitment process is quite stringent since the private equity industry is highly competitive. You might have to attend many rounds of interviews. You must be ready for both technical and behavioral interview questions. In an interview, demonstrating your analytical thinking and problem-solving skills will work in your favor.
Create Networking
Also, work on your networking. Participate in industry conferences and workshops. Stay active on your social media and job portal account. Connect with alums and professionals from the investment field and build relationships with them. Developing a strong network with them will bring you more job opportunities.
Wrapping up
A private equity role needs you to identify prospective investors, undertake due diligence, strike lucrative business deals, make financial models for existing deals, etc. While the responsibilities may vary with the companies, preparing yourself well for early career advancement is vital. If you want an edge over peers, earn certification, attend internships, and create networking.
