How to Break into Private Equity?

Private Equity is one of the most remunerative sectors present in the world of finance. People toil for years to break into private equity. For those who do not know, PE firms make investments in an organization, out in the manpower to improve it and exit the investment to make a considerable profit. To fetch maximum returns, these firms use borrowed money to carry out leveraged buyouts.

The Avenue to Private Equity

The best chance is to get a strong job in the financial services after you graduate and then attempt to move into investment banking laterally. This will require a great deal of cold networking and studying on the side of your main job.

The PE industry is inexplicably competitive, hence, entering it is a tough nut to crack. PE firms do not compromise when it comes to hiring professionals to conduct such high-intensity work. Therefore, you are needed to show your worth by pursuing a degree from a target school and attain relevant work experience.

You can increase your chances of getting into private equity by getting a job in the sphere of finance and gradually try to move into the investment banking realm. This might require you to hone your networking skills and build a strong foundation for your knowledge.

Investment banking can Pave a way for a Career in Private Equity

In case you are successful in making a niche in the IB, your goal of becoming a PE professional will come closer to you. By gaining experience in investment banking, you can become an alluring candidate to PE recruiters since they would have more confidence in your skills. This indeed will need you to build solid ties with the middle as well as small PE companies that might be interested in hiring professionals with lesser experience.

To be honest, PE firms prefer not to hire people right out of B-schools since they need to be sure that you are prepared to handle such vigorous work in the finance world. Ergo, you can establish yourself as a private equity analyst by gaining two to three years of experience in the investment banking dominion.

Certifications are rapidly becoming a popular catalyst for boosting your career. Therefore, pursuing a private equity certification is another route you can take to enter the PE industry. Employers have the highest regards for professional who earn certificates to prove their competence. Moreover, it is a sign of commitment to your profession. Thus, obtaining an investment banking certification can be your best bet to build a lucrative career in this domain.

Once you begin to work as a private equity associate, you can expect to get promoted to the senior associate level in a couple of years. And, performing well for another few years, you can capture the role of Vice-President followed by attaining the Director’s post.

Recommended For You

About the Author: Jacob Wyatt