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.