Private equity is a flourishing career option. It is sought after a career in finance. It pays a competitive salary, a glamorous lifestyle, and an enviable future. A career in private equity requires one to be well-versed with business economics and finance.
Though there are a lot of opportunities in private equity, it is also a challenging field to get to into. It is hyper-competitive. Most employers look to hire MBA graduates for private equity jobs, but people with working experience in finance can also pursue a career in this field. As business schools rarely have specialized equity curriculum, private equity certification programs also help to steer in this direction. Let’s dig a little deeper and find out what is private equity.
Overview of private equity
Private equity firms help private companies to grow by investing in them in exchange for the company’s equity. This investment is used by the company to expand, restructure, or build new products. PE firms may work alongside the invested company to steer their operations. They can later sell the company or keep invested for a long time.
Role in private equity
In a private equity firm, the most prominent role is Analyst. Most PE firms don’t hire out of university and rather hire experienced private equity professionals. For an entry-level role, which is Analyst.
Most PE firms have external recruiters find analysts for them. Recruiters mostly approach investment banks to look for analysts for PE firms. So getting into an investment bank is a good option to start a career as an analyst. To make it to a PE firm, investment banks are a good place to start and get 2-3 years of experience.
Some PE firms hold Summer Analyst Programs. These are for fresh graduates. However, getting into these programs is extremely difficult. It is very competitive, so a strong preparation is required. Private equity certification programs are helpful to prepare for these programs.
What do Analysts do?
Analysts perform a number of tasks at a private equity firm. Their major tasks include –
- Reviewing companies before the company makes an investment.
- Research new areas of investment.
- Prepare documentation for investment deals to take place smoothly.
What skills do you need to work in PE?
Analytical skill and attention to detail
Analysts are required to be highly analytical. Their penchant for the number is unmatchable. They’re always dealing with numbers. Hence, it is very important that one has good analytical skills to take an analyst role.
Further, PE deals can take long days. In fact, private equity firms have long working hours. As a deal gains momentum, analysts are required to put in even more working hours. This can get strenuous.
Analysts are required to speak to business leaders and other chief executives to gain new business and build repo with them. This requires them to be persuasive. This is important when one begins their career in PE, as well when they progress.