Working in private equity may be the number one goal for a person who wants to go into a career in the investments industry. For a lot of people, this is the transition they wish to make – the ultimate exit opportunity for them once they have advanced through the corporate banking ladder and are ready to go onto the next level. As such, they expect higher compensation and benefits – but should also know that there is a reason for this.
Here are some of the basic expectations when working for a private equity firm:
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1. The Challenge Of Getting In
It is a known fact that it is tough to get into private equity firms. The industry is famous for getting a ton of applications from the cream of the crop – top graduates from equally top-tier colleges and universities, with notable grades and commendable academic performance. Most of them require applicants to have an MBA or to at least be pursuing one. It would greatly help to get a foot in the door if you already have an internship in a good investment banking company, or an endorsement from someone you know in the firm. The assessment process is tough – so make sure that you prepare for the interviews knowing that they want to hire someone who can carry out the work effectively – and not someone who is just highly passionate in investments.
2. Fat Paychecks
This is probably one of the most recognized advantages for being in this industry – the remuneration. Even as a junior associate, private equity salaries earn a good base sum annually – couple that with benefits, performance incentives, and other bonuses, if your company closes good deals within the year.
This, of course, comes with a price. And that is –
3. High-Pressure Environment
The reason the industry can boast that they are one of the highest-paying professions a person can have is because they deal with wealth acquisitions and growth, and how to be efficient with this on a wide-ranging scale. You can just imagine how cutthroat that is, especially as you deal with the wealth of high-net worth companies and individuals. It can be a very demanding job, one that will require most of your time, focus, and energy. Make sure this is something you truly enjoy doing at your core.
4. Fulfilling Experience
The job is very dynamic. You get to meet a diverse group of people, hone different kinds of skills and get to be technical with all your financial know-how. You will also gain an understanding of different businesses and how they operate; plus, you get to practice your social and relational skills as you deal with different kinds of people. Though it can be taxing at times, it can get very fulfilling with the varied proficiencies you can amass throughout your career.
There are many advantageous sides to having a career in private equity – but as with anything, it comes with its difficulties. Make sure that you are aligned with the reality of being in this kind of environment and industry, as it is not for the faint-hearted – it’s a tough game, but if it’s the type you enjoy, then you’ll come out of it feeling like a true winner.