How hard is it to get into private equity?
Landing a career in private equity is very difficult because there are few jobs on the market in this profession and so it can be very competitive. Coming into private equity with no experience is impossible, so finding an internship or having previous experience in a related field is highly recommended.
For a student looking to break into one of the top 10 PE firms, your chance is 1 in 300 or 0.33%. To break into one of the top 10 hedge fund firms, your chance is 1 in 147 or 0.68%.
It's not impossible to get into private equity immediately after graduation, but it's certainly not easy. Those with hopes to enter the private equity world should start planning early in order to secure the best possible internships, gain experience and begin to form relationships in the field.
As for hours, both private equity and investment banking can be demanding careers. However, investment bankers tend to work longer hours, often working late into the night and on weekends. Private equity firms also tend to have a more relaxed work environment and offer more flexible hours.
Yes, GPA matters! Bulge bracket banks and almost all other investment banks will look at your GPA when applying for a job and you should include it in your resume. Typically banks screen resumes based on GPA and will often remove anyone below 3.5.
Age Range: You need several years of IB or a closely related field to get in, so we'll say 24-28. Private Equity Associate Salary + Bonus: Your salary + bonus will probably be in the $150K to $300K range, depending on the size of the firm and your performance.
PE firms make money by taking public companies private. Theoretically, they then improve these companies by making them more efficient and productive, ultimately reaping their just rewards for these improvements when they either take the company public again or sell it to the highest bidder.
Working at a Private Equity Firm
The private equity business attracts some of the best in corporate America, including top performers from Fortune 500 companies and elite management consulting firms.
| State | Annual Salary | Monthly Pay |
|---|---|---|
| California | $89,038 | $7,419 |
| Maryland | $88,832 | $7,402 |
| Tennessee | $88,240 | $7,353 |
| Utah | $87,969 | $7,330 |
Landing a career in private equity is very difficult because there are few jobs on the market in this profession and so it can be very competitive. Coming into private equity with no experience is impossible, so finding an internship or having previous experience in a related field is highly recommended.
Is private equity a stressful job?
but nowhere near as much as in management consulting. While the travel will be less, the work in private equity is very stressful and demanding, so the hours you actually spend working may be more stressful or mentally demanding.
Private equity funds are illiquid and are risky because of their high use of debt; furthermore, once investors have turned their money over to the fund, they have no say in how it's managed. In compensation for these terms, investors should expect a high rate of return.
Private equity firms usually seek someone with a strong sense of numbers. As such, the majors they generally look for include Finance, Accounting, Statistics, Mathematics, or Economics.
Goldman Sachs does not give a specific minimum GPA requirement, though some sources suggest a GPA of at least 3.6 is preferred. Additionally, you may need to show relevant coursework and hard skills for certain programs.
Requirements: You must be attending Hight School or an accredited university as a full-time student, or have graduated from an accredited university within the past six months. You must maintain a minimum 2.5 GPA.
It is preferred that a student should have a GPA of 3.5 or above throughout his education career if he/she wants grades to never be a thorn in their career roadmap. Investment Banking companies/recruiters do consider the GPA of any candidate before hiring him/her.
Entry Point: Associate Role (Pre-MBA)
While analyst roles are getting more popular in recent years, the associate level is where most people start their PE career. Instead of jumping straight into PE from college, they go through a few years of investment banking or management consulting first, then switch into PE.
Private Equity Career Training
PE firms are small, tight-knit, and full of extremely smart and highly motivated people.
| Annual Salary | Weekly Pay | |
|---|---|---|
| Top Earners | $241,298 | $4,640 |
| 75th Percentile | $187,500 | $3,605 |
| Average | $143,004 | $2,750 |
| 25th Percentile | $113,500 | $2,182 |
It's no secret that private equity firms have a bad reputation. They're often seen as ruthless vultures that swoop in to buy up struggling companies, slash costs, and then sell them off for a profit.
How many billionaires are in private equity?
The 22 members on the latest Forbes 400 list who made their fortunes in private equity are now worth a combined $153.7 billion. Leading the list this year is Stephen Schwarzman, chairman and CEO of Blackstone Group, with a net worth of $37.4 billion.
A lot of limited partner private equity firms will hire undergraduates and then put them through the CFA. It's rare for direct investment firms to do the same. However, we also see a lot of junior investment bankers with CFA level one, as it shows both technical knowledge and evidence of commitment.”
| State | Annual Salary | Monthly Pay |
|---|---|---|
| New York | $80,941 | $6,745 |
| Alabama | $80,795 | $6,732 |
| Nevada | $80,199 | $6,683 |
| Ohio | $79,589 | $6,632 |
Because private equity investments take a long-term approach to capitalising new businesses, developing innovative business models and restructuring distressed businesses, they tend not to have high correlations with public equity funds, making them a desirable diversifier in investment portfolios.
Private equity is a core pillar of BlackRock's alternatives platform. BlackRock's Private Equity teams manage USD$41.9 billion in capital commitments across direct, primary, secondary and co-investments.
