How to make a Career in Private Equity | How to secure a job in a Private Equity firms in India

The Private Equity Industry in India attracted inflows of 36.8 bn USD in CY 2019 as compared to 36.2 bn $ in CY 19 

They typically make investments in the range of 100–500 mn $ in a single transaction and expect IRR of 20–30% with a view to exit in 3–5 years 

The international players : Barings Private Equity Asia, Advent International, Blackstone, Bain Capital, Caryle, General Atlantic, Warbug Pincus, Chrys Capital, Everstone , True North etc 

Domestic Players are ICICI Ventures, Premji Invest, Motilal Oswal Private Equity, Kedaara Capital etc 

There are General Partners and the ones who invest like Sovereign Wealth Funds are called Limited Partners ( LPs) 

Roles are : a) Investor Relations & Marketing — Raising Debt b) Investment Appraisal c) Monitoring of portfolio companies and tracking cash flows , valuation etc 

They also have a back office for accounting operations 

They pay young undergraduates and graduates from top Indian and global institutes, in the age group of 23–28, anywhere between Rs 35 and Rs 80 lakhs p.a. 

At Associate/Senior Associate level, they pay Rs 85–135 lakhs p.a. 

As funds grow in size, they do not need more people at the senior level, but at the execution level. Its a pyramid. 

The only challenge is the size of the teams — its just 8–10 people in India for each major player in India 

As per the data from Vito, in the year 2016, there were 397 people working for 52 global funds and 445 people in 65 domestic funds in India . Of this, 50 per cent is VP and above level. 

The number of professionals in the sector has shrunk from 1300 a decade ago to 850 now. 

So this industry suffers from too many candidates aspiring for entry and thus too many resumes. Thus they are very selective and go to premiere B-schools and engineering colleges for hiring. 

People from Investment Banking and Consulting also eventually apply for PE Roles. 

Also in demand are ex-startup founders who are good resources for PE for execution 

You need to have skills like Financial Modeling, Investment Appraisal and Valuation.

Most important, you need to be super smart and well networked to enter PE , survive and grow there

Financial Modeling | Advanced MS Excel  

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