Private equity is a successful means of investing – so it is worth finding out how to get a job in it.
The world economic recovery has been stronger in some advanced nations – such as Britain – than others, but there can be little doubt the overall outlook is brighter than it has been for some considerable time.
A substantial part of that improvement has been in the overall financial sector, most obviously in banks that have had to restructure, take on new investment or even bailouts, and now be subject to more stringent rules and regulations.
However, over time every crisis eases and private equity may be an area in which there is some of the greatest reason for optimism. As it deals with assets not traded on the stock exchange, it is subject to less volatility than stocks and shares, is more long-term and, as we shall see below, has been enjoying better returns.
Moreover, as the economic recovery does kick in, private equity will have a role to play in building up companies as they seek to take advantage of the opportunities out there.
The UK and US are two of the stronger economies in terms of recent growth and in the latter case, the Private Equity Growth Capital Council has been hard at work promoting this form of investment. Its report into the second quarter of 2014 revealed $108 billion (£65 billion) had been leveraged for a range of projects, while fundraising had nearly doubled since the previous quarter to $50 billion.
In the UK, the equivalent body – the British Private Equity and Venture Capital Association – has revealed that the last decade has seen returns on private equity of 15.7 per cent, an impressive figure given the economic picture over the majority of that period. That compares favourably with pension assets (7.8 per cent) or the FTSE all-share index (8.8 per cent).
During the past year, the element of the sector performing best was venture capital, with returns of 22.9 per cent.
People wanting to work in private equity may note that employers involved in the sector are among some of the busiest graduate recruiters. According to the High Flyers report 2014, these include PricewaterhouseCoopers and Deloitte. Indeed, the report noted that the accounting and professional services firms and City investment banks were among the most active sectors.
This suggests there are plenty of jobs around, but it is important for candidates to be well-suited to roles that involve handling and investing large quantities of money, with clients depending on you to get a good return.
It is important to note that only the biggest firms will take on inexperienced graduates, as they have more scope for training. Ideally, at least two years of experience in banking and finance is required. Those working as analysts or management consultants can make it in, but it is important to note that qualifications and experience are not the whole picture; many will look at personality as well, knowing that a cool, sound mind will make the best decisions.
Looking for a Private Equity job? Contact Marks Sattin today. Founded in 1988, Marks Sattin takes pride in being one of the oldest privately owned recruitment consultancies with presence in 9 cities across UK, Russia, Australia and Singapore.