Private Equity Positions

Positions in Private Equity

If you're considering applying for a job in private equity, here is a brief introduction.

Private equity jobs are typically separated by primary areas: number crunching; appraising and executing deals; and originating deals.


"The Number Crunchers"

The number crunching area consists of the junior staff. These employees are usually offered short two year contracts and their main duty is to analyze potential investments. The number crunchers look at the accounts of the companies that the fund is considering and constructing financial models for calculating how much these companies are worth.

Appraising and Executing Deals

After the number crunchers finish calculating and analyzing the investments, the next set of people take over the deal. These people, sometimes called the principals, take the information that the number crunchers gathered and decide whether the investment is beneficial to the firm and what the price should be set at. If these people decide that the investment works for the private equity firm then they help execute the deal.

"Originators"

This leads to the "originators" who are more senior than those who appraise the deals. These people are typically the fund's partners and their responsibility is to oversee the deal while it is being executed. Their duties also include originating new deals by finding more companies to invest in. These people use their senior status to build relationships with top executives in companies, possibly using that connection to coordinate a deal later. After the deal has been completed, the principals and partners nurture the company. This nurturing role may involve a position on the company board and advising a strategy that will lead to increased profits.

Necessary Skills for a Job in Private Equity

In order to be seriously considered at any position in a private equity firm, you generally need an excellent academic record--usually an MBA from a quality university. In addition, many recruiters want professional experience of at least a year in investment banking or a relevant industry. The salaries in the private equity industry ranges by position, but data suggests that private equity compensation is exceptionally high.


Looking for a private equity job?

Private equity is a highly competitive job market.  One way to distinguish yourself to private equity employers as a qualified candidate is to enroll in the Certified Private Equity Professional program.    Participants in the Certified Private Equity Professional program gain exclusive access to private equity career advice and videos, résumé coaching and template and much more.  To learn more about this program you may read this article or visit the program website. 




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