Working in Private Equity: How to Succeed?

What is a private equity fund?

A scheme for collective investment in different types of equity securities is known as private equity fund. It is typically entered into for a fixed term of between three to seven years, which can be extended further. The fund is managed by professionals. Institutional investors pledge towards the partnership and they raise and manage the fund. The management firm employees these professionals to manage the fund. One firm can manage different sets of private equity funds and try to raise new funds every few years.

Overview of private equity

The investment companies are essentially seeking partial ownership in private companies. At times, they also make investments in securities from public companies and this comprises of the private equity fund not offered to the common public that is, not traded on a public stock exchange. The investment horizon is also much longer than the public traded ones, as there are very limited opportunities for reselling them to other parties.

Careers in private equity firms

It is not necessary that one must be a Harvard graduate in order to gain success while working for a private equity fund. However, the person must have reasonable skills in management and finance. There is a great chance to earn big incomes, as being a partner in such a firm can provide opportunities of hugely satisfying remuneration packages. There is no default profile for those looking for such jobs. There are many bankers and finance professionals who find jobs in this field. It is a field which is open however clearly a connected education as well as a professional finance background will increase the likelihood of you being offered roles and being successful in the private equity field.

Succeeding with multi-disciplinary expertise

Those who are experts in financial disciplines, like money management and investment banking can offer their expertise to the firms dealing in private equity, as the firms rely on in-house advice. Additionally, those having a background in non-financial areas, such as electronics, pharmaceuticals, information technology and manufacturing are also valuable to the firm and can succeed in such a career. Private equity funds tend to be split between those who will generalise in their investments, these are the businesses more likely to specifically recruit finance professionals. Private equity firms looking to invest in specific industries, such as manufacturing, will be more open to recruiting those with field expertise in order to maximise their potential gains.

Dealmarket is a world-renowned deal flow software company that specialises in bringing together the private equity industry.

[author ]Robert Reeve works for Bough SEO, a London SEO agency that specializes in all forms of digital marketing.[/author]

Share on TwitterShare on FacebookShare on LinkedInPin it on PinterestSubmit to redditSubmit to StumbleUponShare on Tumblr

Written by Guest Contributor