Private equity is among the most lucrative careers out there for the finance graduates, and they must give it a try, at least once, to hunt it down. A career in private equity does not just offer handsome pay, but a lavish lifestyle, international travel opportunities, and much more. You become a part of the world, from wherein comes the biggest of companies on Earth and the most influential people that the world has ever seen.
However, the opportunities to break into a private equity career are limited and excessively slim, you still can make the cut, if you are perseverant, and a dedicated soul. Further, in the current times, much aid has come up to help you fulfill your dream. One of the many effective aids in this regard is the private equity certifications that are industry-relevant, and offer immense value when it comes to bagging a job role in the PE sector.
Who Gets Hired at PE Firms in the U.S.?
Private equity jobs in the U.S., usually go to experienced investment bankers, however, there does exist exceptions. There a few top-tier business schools in the country, from where the large US private equity firms, hire directly. These are mostly the so-called ‘ivy league business schools’. You need to be an MBA graduate from an elite business school to get an interview invite at the top private equity firms in the U.S. One other option could be, you being an experienced strategy consultant in the finance domain.
Once in a while, though, they do hire fresh graduates with an undergraduate degree in subject domains such as finance, accounts, science, among others. But, that would count as a rarity. Even if they do hire them, much scrutiny will be put to their knowledge, or experience, in financial concepts such as financial modeling, market awareness, and familiarity with the nitty-gritty of the industry. Compared to the interrogation conducted by the best private equity firms in the U.S. while you face them at the interviews, VC firms would feel much generous to you.
What MBA Programs to Choose, to Later, Enter Private Equity?
A good-to-know fact for all MBA(finance) graduates is that out of all PE workforce in the U.S., 60% hold an MBA degree. Taking about the essential skillset to enter the said domain, you need to be good at business evaluation & financial modeling. Besides, being perceived as an elite also happens to be a qualifying criterion, and for that, you must try getting into a highly-reputed and top-tier business school.
Apart from that, experience working at bulge-bracket investment banks, or having been a consultant at a reputed financial services firm, will certainly help, breaking into PE.
Huge Paychecks in the PE Sector for the Few Chosen Ones
As a highly lucrative job category for fresh MBA graduates, it’s small in comparison to consulting, tech, or investment banking. The finance sector in the U.S. generally hires very few fresh MBA graduates that happen to be the cream, talking metaphorically. The said industry recruits only the very best from the top b-schools. However, those who succeed in making the cut, earn overwhelmingly well as private equity professionals in the American finance industry.
Average Base Salaries of Finance Graduates from Top B-Schools
The most recent employment reports that have come from Harvard Business School and Stanford University’s Graduate School of Business, indicate that the pay is incredibly high for the finance graduates of the world’s top business schools. As per the said report, 12% of the last year’s batch at Stanford received job offers, paying an average base salary of $170,000, with the highest being $225,000, and the lowest, a $100,000. Further, the average signing bonus amount hit a whopping $40,000.
We hope, after having read the full article, you must have gotten a fair idea about preparing for a PE job, and the pre-requisites to clinching one.