Here's how you can acquire new skills to thrive in the competitive private equity industry.

In addition, gaining practical experience through real-world financial projects or internships can greatly enhance your understanding. Applying what you’ve learned to actual scenarios helps solidify concepts and improve problem-solving skills. Look for chances to work with experienced colleagues or mentors who can offer insights and feedback. This hands-on approach will deepen your financial knowledge and better prepare you for complex investment decisions in private equity.

1) Learn financial modeling, valuation techniques and how to read the 3 financial statements. Crucial to understand the linkages between the 3 so that you're able to construct a simple working model on Excel from scratch. Pick a very easy-to-understand business, 2) Practice >>> Theory, 3) Have a deep understanding of the industry and competitive landscape which will help you to forecast, 4) Familiarize yourself with gen AI tools. Future of financial modeling will heavily rely on these Gen AI tools for task automation and better data-driven modeling.

PE firms are always on the lookout for deep sector expertise. Unsurprisingly, you see partners coming from rich industry backgrounds. The process may be overwhelming but start with a relatively simpler industry. Something that you understand and use every day. Say, for instance, personal care products. Gain insights by, (i) understanding the value chain: identify producers, distributors and retailers, (ii) use data tools to understand key players and market dynamics, (iii) analyze consumer trends and preferences, (iv) understand competition, (v) understand manufacturing/supply chain processes (vi) Threats/tailwinds from macro factors and so on. Important to look out for new-age companies and understand their business models to gain an edge.

While AI tools have made life easy, understanding technology is crucial to thrive in this competitive landscape. A basic understanding of new-age software and platforms goes a long way when analyzing the next generation of companies that heavily use generative AI in their product/service suite. Identify relevant skills: AI, coding (Python, SQL), data analysis, financial modeling. Set clear learning goals and break them into manageable tasks. Seek mentorship from experienced professionals. Stay updated on the latest news and trends. You should be able to speak about the latest tech in the market. Network with tech-savvy peers for insights and collaboration opportunities. Maintain a mindset of continuous learning and adaptation.

We are living in such a volatile world that every action impacts private equity and overall economy. Understanding the economics behind every move whether its war, international trade, forex, gold prices, political stability can bring so much knowledge on the table.