Private Equity

THE PRIVATE EQUITY INVESTMENT PROCESS

• Rise money from limited partners (LPs) like pension and retirement funds, endowments, insurance companies, and wealthy individuals.
• Source, diligence, and close deals to acquire companies.
• Improve operations, cut costs and tighten management in portfolio firms
• Sell or exit portfolio companies at a profit.

CONTRAST TO INVESTMENT BANKING

• Given its highly lucrative offerings and the very limited job availability in private equity, the industry is full of many of the best and brightest
• While the skill-set needed is very similar to that of investment banking, in terms of modelling, valuation and deal origination, there is also a much greater focus on thinking about the big picture, on due diligence and on companies’ operational side.
• Typically, landing a private equity job requires at least one year of investment banking experience, but there are graduate programs or even internships available.