For any financial or business expert, private equity (PE), one of the various ways a firm may acquire funding, can be an interesting and rewarding industry to join. Moving into private equity as a career option provides high-growth chances, the opportunity to engage with smart individuals and organisations, and several incentives for a job well done.
What private equity is, what skills professionals need to succeed, and what sorts of employment to anticipate for those just starting out are some of the things that professionals currently working in finance or investments, or recent students, should know about PE.
What is Private Equity?
Private equity is a sort of privately-held investment capital. Private firms, or those that are not publicly listed or traded, are frequently sought after by investors. PE may also include buying publicly traded firms, making them private in order to reorganise them, and then reselling them on the open market for a profit. Equity firms, investment funds, high-net-worth individuals, and other institutional investors undertake PE investments.
Choosing a Career in Private Equity
A job in private equity provides a lot of room for advancement and is an excellent choice for any pre-MBA graduate. Professionals interested in a career in private equity should begin by working as a PE Analyst or Associate in a private equity company and working their way up. Experience in investment banking/consulting, as well as these other soft skills, is a huge bonus for these highly competitive professions in private equity:
Private equity companies utilise a variety of complicated investing techniques, including leveraged buyouts, growth capital, mezzanine capital, and venture capital (VC). Venture capital is another key area of development for financial professionals, as well as an interesting specialised career path.