The years in private equity (PE) are fueled with success with its ‘But to Sell’ core strategy! PE has a secular penetration curve. It has no end in sight. Private equity firms are investment management companies that acquire companies by pooling capital. The PE firms pool capital from high-net-worth individuals, investors, and manage about trillion dollars attracting professionals to join PE.
Round-the-clock events in the PE industry attract finance graduates to find a career in PE. A career in Private Equity is not the first step, but often the destination in the finance career. Here are a few fascinating reasons to choose a PE career.
Private Equity firms usually hire their Analysts from bulge-bracket investment banks, middle-market banks, and boutique banks. They also consider PE professionals from competitor firms, and in rare cases, even undergrads for junior roles in emerging markets. But, for graduating students or recent graduates with little or no experience, it may be nearly impossible to break into private equity without an additional qualification in the PE domain. That’s the reason students of MBA and MS Finance programs around the world increasingly pursue a high-end global qualification like the CPEP™ simultaneous to their academic coursework.
The main responsibilities as a PE professional
In addition, today, PE firms seek:
For traditional candidates for PE jobs (IB analysts, etc.), there is an on-cycle and an off-cycle recruitment process. The on-cycle process for analysts at big PE and boutique firms runs October-January/March in New York. If you are selected, you may begin to work in August of next year.The off-cycle process is meant for roles outside New York; roles for anyone who is not working at an investment bank; and roles at smaller firms. Off-cycle takes more time than on-cycle, but you start work immediately.
PE firms assess technical capabilities, ability to work under stress, and with unstructured information through case studies and modeling tests. These may be quick, 30-minute tests like creating a simple LBO model, or a more standard 1-3 hour exam, asking applicants to build a real LBO model; or even a take-home test in which applicants may be required to write a detailed strategy or an investment thesis and submit it within a few days or a week.
Apart from domain knowledge, the PE career is for candidates who are competitive, extremely attentive to details, and high achievers.
As PE firms tighten the recruitment and expectation amid the changing economy, take a leap into the industry by preparing for it. Upgrade yourself by learning new skills and knowledge. The best-recommended way to upskill yourself is to earn a certification in private equity.