Overview of the ways to get into private equity career

Many people are drawn towards a career in Private Equity (PE) for several reasons. This is the most suitable field for those who possess an interest in operations, investing and are seeking to build value for the company’s in the long run.

The private equity firm consists of part operational management, part fundraising, and part investing. The job role in the private equity sector is mainly involved to attain capital from outside investors, called Limited Partners (LP), and with the help of raised capital to buy other firms, enhance them and then sell them to get the returns on their investment.

In this article, let’s get a few insights about private equity career:

Prerequisites to get a job in PE firm

This industry is called “private” equity because the companies, in which the private equity firms invest, are usually private or they become private because of the investment.

If a person is looking for a job in private equity industry, then they will need the following:

  • Top academic credentials include grades, test scores, and university reputation.
  • Good networking and preparation for the interviews.
  • Relevant work experience that includes a sound knowledge of transactions.

Essential PE skills

It is very important to master skills to get a rewarding career in a private equity career. There are many individuals who with their skillset have reached great heights in their career. The PE firms look for individuals who possess the following skills:

  • Individuals who are highly attentive to details.
  • People who mainly focus on achieving more and are willing to work long hours
  • Those who are interested in cracking new deals
  • Those individuals who are not afraid of taking risks rather than just investing in public organizations
  • Shows keen interest in investing and operations
  • Willing to be a part of long-term projects that include building a portfolio organization across many years. Use critical thinking to evaluate the companies rather than just being an agent or just selling.
  • Interested in non-deal work such as fundraising and monitoring the companies.
  • Should possess the ability to think critically about investments and companies.
  • Soft skills to be the best fit for the private equity job opportunity.
  • Must be aware of the latest market and overall economic trends.

Not just these, if an individual has the following technical skills, then it will benefit them to be them to crack the private equity deals andto grow further in their career.

  • General financial analysis
  • Financial modeling
  • Leveraged Buyout (LBO) modeling
  • Mergers and Acquisitions (M&A) modeling

Working in Private Equity Jobs

Private equity jobs attract top talent in the sector of financial services. There are several key positions to fill at a PE firm. The career path in the private equity and hierarchy varies from one firm to the other. One can earn really well if they are into any of the following positions.

· Private Equity Analyst

  • The entry-level job is mainly focused on logistical deals.
  • Average salary per annum – USD 100 to USD 150K       
  • Time for promotion to next level – 2-3 years

· Associate

  • focused on private equity deals and analytics
  • Average salary per annum – USD 150 to USD 300K          
  • Time for promotion to next level – 2-3 years
  • Sourcing private equity deals, handling transactions, and monitoring companies in the firm’s portfolio
  • Average salary per annum – USD 250 to USD 400K       
  • Time for promotion to next level – 2-3 years

· Senior Associate

· Vice President

  • Manager of private equity deals
  • Average salary per annum – USD 350 to USD 500K     
  • Time for promotion to next level – 3-4 years

· Principal or Director

  • Negotiator as well as generator of PE deals.
  • Average salary per annum – USD 500 to USD 800K     
  • Time for promotion to next level – 3-4 years

· Managing Director or Partner

  • Fundraiser and chief representative
  • Average salary per annum – USD 700K – USD 2M 

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