Private equity firms hires the best and pays them well. Private equity executive jobs are one of the highest paying job in the financial world. This firms deals with lots of money.
If you have the ability to build value for firms and good at deal management and also can build long term relationship then you can go for jobs like private equity executive. Here are few things you should know about private equity industry and how to build a career in this field of work.
Private equity executive search are often conducted by the firms to hire the best. This firms collects funds from high net individual and institutional investors. This moneys are invested in private companies, leveraged buyouts, partial stake purchase of private companies.
Private equity firms invests investor money in public and private companies. They manage portfolio of investments and plans for exit of investments with large returns. Private equity firms manage multiple funds. Each type of funds is invested in specified category of companies. They have funds for different sectors like startup, healthcare etc.
There are large private equity firms like vanguard group, Carlyle group, Blackstone group and many others. Also there are small groups who handle small sum of money of investors. Private equity firms comes to public attention when they do large acquisition.
Private equity firms brings money from professional investors and raise many capital for investments. These moneys are invested for many years. The companies invests money in startups and publicly traded companies. Private equity firms earns money from profits and fees. Private equity firms get timely management fee which is about 2-3% of total amount received by the companies.
Private equity managers who handle capital funds get some percentage of profits at the year-end which they obtain by stake sell and listing of the companies. This comes in under the range of 25%. PE firms generate money from their own portfolio. They can charge transaction fee of 1% from the companies they invest on. They can also charge for monitoring, consulting and advisory fee on the investment.
Private equity firms used to keep low number of staff. Getting a job as private equity executive is a tough one as there are limited job slots and intense competition. PE firms provide clear growth trajectory from junior to senior level.
Private equity executive search gives options to the investment bankers to shift their jobs. Getting this job is tough. The professionals at the 2nd year MBA program are hired for the role of associate.
After completion of the MBA program they move to senior level position. Some PE firms can also hire analyst in junior most position who have at least one year experience in investment banking. Analyst should have exceptional skillset and credentials. Private equity firm career growth looks –
Director or partner
The rate of career growth in PE goes from associate level to partner. Private equity executive should have strong connection in the industry. This executive should not go for third party validation for prospects of promotion in private equity as well as for venture capital firms. To prove your expertise you should go for professional and registered firms.
Private equity executive should have sense of accounting and valuation. They should have knowledge of financial modelling. Deal experience is also required. The executive should know about executing and management of deals. They should have proper connection with investment banks. Private equity jobs are about striking deals and relationship building.
Each executive should do proper research and have knowledge about financial modelling. The executive have important jobs with lots of responsibilities. Private equity executive should have ability to forecast valuation, making financial projection and calculate the rate of return. They should coordinate dealing.
Private equity executive jobs are highly salaried and requires brilliance in investment knowledge. Executive should learn about how to deal with industry and should have social skill to engage with the clients.
If you have few years of experience in investment banking or you are in the start of your MBA program then a certification that is recognized by industry can help to make a place for yourself in dream career in private equity firm.