What is the Typical Career Path in Private Equity?

Featured Image Caption: Career in Private Equity

Jump to read...

Landing a job in private equity is usually seen as the most sought-after career anyone can ever have. But how your career would evolve after you have successfully landed a job in private equity?

The typical career path in private equity is described below.

Analyst

Pre-MBA candidates are being hired straight from the investment banks, accounting firms, or consulting firms. These candidates usually have two to four years’ of relevant experience. The responsibilities of this role include cold calling, screening the potential sectors for interested companies, investment analysis, and prospecting. Additionally, working on company data, financial models, and investment memos for the investment council is also part of this role. As an analyst, you’d be working with the company as they create their strategic plan. You’d be responsible for the financial model for any particular deal.

The key skills that will make you good at this role are numeracy, being a team player, and knowledge about several important industries. For those who are trying to have a career in private equity, need more to stand out from the crowd! For example, you can showcase your ability to understand the commercial or financial sector.

The prerequisite for this role is to have a background in commerce or finance. Additionally, having MBA degree is recommended but it is not mandatory to have. Possessing a strong knowledge of different business models and industries is highly recommended.

Post MBA Senior Associate

These are generally recruited out of business school and having three to six years’ of relevant work experience particularly in private equity, investment banking, and consulting.

The job responsibilities include playing the leadership role, interacting with the prestigious clients, reviewing the financial information, evaluating the profitability and portfolio risk, leading new investments, helping in the transaction execution procedure, managing the important client relationships, making career development goals for the team, and tracking the database.

To work in this type of role, you must have the MBA degree from an elite institution along with at least two years of private equity transaction experience. Time management skill is highly recommended. You must have the ability to multi-task while dealing with several projects. The ideal candidate should have potential to bring significant business to the firm.

Vice President / Principal

Known as one of the coveted roles in the top private equity firms, the vice president is in the charge of the firm’s focus on investment and strategy. Additionally, being a part of the investment committee, he or she must actively participate in investment decisions. The salary is largely depended on the profits of the investment firm. One can get promoted to the partner if they showcase a strong potential to generate enough fund for the investment firm.

To perform in this role, you must spend a lot of time in maintaining the portfolio companies. The key skills that are extremely important for this role are: having five to seven years of relevant experience, impeccable project management skills, exceptional analytical ability, and a degree in economics or finance or business administration from leading institutions.