HOW TO START A CAREER IN A PRIVATE EQUITY PORTFOLIO COMPANY?

There are many ways to make a career in a PE-backed company, and a variety of reasons why this is a great career choice.

There is a range of portfolio companies, which vary from well-established mid-market firms, to start-ups with unique ideas that need capital to begin their journey.

McKinsey calculated that globally, at the start of 2020,?private equity firms had over $4.1 trillion of assets under management, and therefore, there is a lot of choice in to which sector you could start your PE-backed career in.

Portfolio companies are a great place to work as they have the opportunity to bring intriguing ideas to the business market, as well as creating new jobs, aiding the economy.

Private equity firms usually focus on hiring employees for their previous experience rather than educational background.

Furthermore, experience investors whom show the correct expertise can often choose to manage their portfolio of companies themselves.

Although, it is usually a better decision to hire a skilled portfolio manager to manage the company, as this will aid profit increases, whilst being a low-risk plan.

PE firms will pick a portfolio manager that aims to grow a diverse business from a varied range of industries and market positions.

Strong portfolio managers will also provide valuable input in the research of companies in need of capital, and deciding whether these companies have a good potential for growth in their future.

For undergraduate students considering a career as a PE-backed portfolio manager, the best courses to take include business, economics, finance, accounting, and mathematics.

For this portfolio manager role, it is also crucial to gain an MBA degree.

Investment banks and private investment firms tend to look favourably on talent that has spent time studying risk management, accounting, and finance.

Working in the role of a research analyst for a few years can also open doors to becoming a portfolio manager, as a typical analyst position provides solid training which is a huge advantage for promotion opportunities.

Remember, a career within a private equity portfolio company is a great decision, as these firms often offer an entrepreneurial and open working environment, which provide employees with a huge amount of skill development and experience in order to be promoted within the business.

About Raw Selection:?Raw Selection favours a meticulous approach to candidate research. Our process for selecting the right candidate means we can boast a 100% success rate for all our retained clients, with 96% of placed candidates still in their role after 12 months.

If your Private Equity firm is looking to hire, or if you are looking for a new role within the PE sector, please get in contact with Alex, at [email protected]