The Private Equity industry as we know it today is significantly larger compared to what it used to be 20 years ago.
Nowadays pension funds, investment banks and high-net-worth individuals invest their money in private equity funds. The main idea is to use the money in order to acquire private or public companies, develop and improve their business, and then resell it at a considerable profit, given that the typical investment horizon ranges between 5 and 10 years.
Private equity investments are risky, very illiquid and investors expect a significantly higher return compared to some of the other asset classes.
Private Equity is one of the most desired career paths in the world of Business and Finance.
Several years ago very few, if any, of the PE funds were hiring without relevant work experience. Today, it appears that more funds are willing to hire people with less experience. It is not rare to see intern and analyst openings within PE funds. However, if you’ve worked a couple of years in investment banking, consulting, or financial advisory, your chances of being hired increase significantly.
Salaries vary based on the firm size and the country that you are located in, but they are generally 10-20% higher than the ones of investment banker analysts and associates with the same number of years of experience.