Private Equity Jobs

 

 

Private equity jobs are mainly found in the mergers and acquisitions or equities divisions of various investment banks. Private equity jobs essentially involve raising funds from various private companies, banks and even individuals.[br]

 

Private Equity Jobs: Industry Structure

Private equity job profiles differ from firm to firm. Private equity firms can be broadly categorized according to their investment phase and business model into:

 

• Leveraged Buyout (LBO) or buyout firms: These are companies that invest equity in under-performing (yet mature) businesses, dealing in a good product and having stable cash flows. The aim of a buyout firm is to take ownership of the business and bring it back on track.
• Venture Capital (VC) firm: These companies fund operations of potentially profitable new businesses. They focus on guiding the new companies without taking control of their business.
• Secondaries or Fund of Funds: Such companies do not directly invest in operating companies. Instead, they purchase shares in existing private equity funds, both LBO and venture, usually at discounted rates. Through this approach, secondaries help out private equity firms that have fewer resources and are unable to manage their investments effectively.[br]

 

Private Equity Jobs: Key Roles

The key private equity jobs include:

 

• Analyst or associate: This is an entry-level position, where the associates typically assist partners with various tasks, research on different transactions and support sourcing deals through screening potential candidates. Private equity associate jobs generally require an MBA degree and a good academic record.
• Senior associate: A continuation of an associate’s role, a senior associate position requires 2-3 years of experience as an associate or any other relevant job. This is a partner tracking role, which implies that a senior associate becomes a partner after a few successful years.
• Partner or Vice President: Besides qualifying as senior associates, individuals with relevant experience in investment banking, finance, business consulting and entrepreneurship are qualified for the position of a partner. Partners typically receive a share of the revenues and annual profits of the company.
• Venture partner: They work on specific deals and receive fees/commission only for these deals, unlike general partners who get a share on all deals.
• Entrepreneur in residence: This is a temporary job, usually lasting 6-12 months, for developing business ideas for a venture fund.

 

Private equity jobs are well paying and have great scope for growth. The exposure that these jobs offer is unmatched, equipping individuals to manage an entire corporation or even set up their own. However, keep in mind that there is a strong barrier to entry in the private equity market.