What do you do if you want to climb the career ladder in Private Equity?

Based on my 20+-year PE career, the most important but basic elements required for a successful PE career include: knowledge and understanding on PE (buyout, growth, venture, distressed, fund model, carried interest, etc.); core foundation knowledge (economics, finance, accounting, quantitative methods, business management); analysis skill; skills for producing good PE report; financial - valuation modeling; transaction implementation skills (deal sourcing, due diligence, deal closing, portfolio monitoring); and right attitude, mindset, soft skills (communication, negotiation, networking, etc.). These elements are covered in the program on PE-IB which I developed for Vietnam Investment Nurturing Hub, a PE-IB training and advisory platform.

Strong network plays key role in the success of a PE career. PE professionals are required to perform a variety of tasks and to acquire strong T-shape skills (combination of in-depth technical PE skills and large domain knowledge in different industries) to perform their jobs. Besides self-learning, PE professionals can develop their T-shape skills through a network of people on whom they can rely to obtain valuable knowledge on a specific area (E.g. production management) in a specific industry (E.g. food processing). In addition, building a large network can help PE professionals source deals in many industries. In a nutshell, it's not a must to know everything, but it's crucial to know the person knowing what you want to learn.

Find the areas or challenges that others shy away from - could be a particular part of your team's work that others do not like doing, or think is too challenging. These can be the best areas to show differentiated performance and give you a great chance to stand out.

How well are you able to utilise your experience across industries. Most promotors will give you all positives about their business, how well can you do thin slicing.

To climb the career ladder in Private Equity, one should focus on building a strong foundation of financial analysis skills, industry knowledge, and deal experience. Networking with colleagues, mentors, and industry professionals can provide valuable insights and opportunities for advancement. Seeking out challenging assignments, taking on leadership roles, and consistently delivering results are essential for career progression. Additionally, pursuing relevant certifications such as CFA or MBA can enhance qualifications and credibility in the field. Continuously staying updated on market trends and expanding professional networks further accelerates career growth in Private Equity.