How to Prepare for a Rewarding Career in Private Equity?


Taking up a career in private equity is not a piece of cake! You might have come across this kind of statements being repeated over and over again. The road towards private equity isn’t easy but it is not difficult as well, provided you follow the right career path. 

Blackstone Group LP, Apollo Global Management LLC, KKR & Company LP, Ares Management LP, and Carlyle Group are few names of top private equity firms. Private equity is another form of private financing where the funds and investors generally invest directly in companies or either engage themselves in buyouts of such companies. This firm operates with long-term investment for a period of five to seven years. These firms are mostly available to high net worth individuals. 

Private equity

Apart from investing closely on a number of funds in companies they can participate closely even through stake holding, advisory services and mentorship. They do not just play the role of investors but even as growth partners. Private equity firms generally invest in mature companies whereas venture capital tends to invest only in startups with higher growth potential. 

Getting into such profession requires an eye for detail, to identify hidden gems. These are professionals who have set themselves associated in some of the biggest success stories in their domain. Being a private equity professional is one of the most coveted position in the finance field. Private equity firms recruit professionals with exceptional skillset, great scholars and those who possess astute analytical skills.  

As mentioned above, getting into a private equity firm does not happen overnight. Most of the students with a master’s degree have previous experiences or internship programs in a consulting or investment banking domain. Professionals in this field require a high level of expertise and knowledge, hence specific skills are required for one to start a career in private equity. Let us have a look at the skills that will help candidates land a job in private equity.

  • Modelling and data analytic skills – private equity firm involves modelling, as a private equity professional one needs excellent skills in modelling. At an expert level, professionals may require to have superior hands on financial modelling, VBA and excel. Along with the technical aspects of modelling a professional must also possess exquisite skills in data analytic as well. 
  • Research – to have exceptional overview on investment prospects it is crucial to can do deep research. Doing so provides the ability to have skills in analyzing strategies of funds and the returns that will be generated.
  • Knowledge across all domains – private equity funds invest across multiple sectors. Even though there are funds that work only on specific sectors, most leading firms are exposed to large number of industries like retail, IT, healthcare, media, and energy etc. 
  • Database tools – having hands-on experience on database tools is an added benefit. Tools such as Factiva, Bloomberg, and Thomson Reuters are great tools for a private equity professional. 

Landing a job in a PE firm is no joke, employers nowadays are looking for professionals with a refined skillset. It is high time that you refine your skills, leverage your learning experience by taking up certification programs in private equity certification. Certifications are proven valuable in today’s job market.

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