Private Equity Job Opportunities Abound

There are a lot of good job opportunities in top private equity firms. This sort of firm invests in companies that are not traded publicly. One can find various types of private equity investments such as Leveraged Buyouts (LBO) and Mezzanine Financing and Venture Capital (VC).

In private equity, it can be challenging to find capital, which is critical for making deals. Focusing on the debt side of financing, as Mezzanine investors do, gives more seniority than keeping equity shares in a company. Because of their focus on debt and preferred status over equity shares, such investments often contain a lesser degree of risk; hence the return on these type of investments can be smaller than what one finds from an equity based investment.

Venture capital seeks to help a company grow by launching new goods or services. VC firms raise smaller funds, while LBO firms may raise multi-billion dollar funds. This kind of activity happens during the "seed round" or early phase of the life cycle of a company. Later on, the company will focus more on the expansion of it's market. The supporting of founders is not something the VC industry is known for doing. When thinking about the structuring of investment deal terms, a lot of VC firms have the reputation of behaving like vultures. This is why entrepreneurs often steer clear of venture capital investments. Founders tend to notice their role in the company becoming reduced to single digits even after the company's expansion goals are met.

The Private Equity Model of the Future

Some reports note the traditional private equity models are no longer sustainable. The days of using financial engineering (i.e. using greater leverages and arbitration involving larger exit multiple) as a means to get a higher return are over. Alternately, driving profitable growth and generating good returns in undervalued but excellent companies will be the focus.

Careers in International Private Equity Investment

The potential for employment working with international investments will be an important indicator to watch over the next ten years with particular focus in Asia and India. Private equity investments will surely increase in countries like India and China, that have experienced rapid growth. They will also do well in places such as Australia, Indonesia, Brazil and Russia. These countries are rich in resources.

Necessary Job Skills

While financial executives should have a background in accounting, those who lack this background might be able to still get a position in the private equity filed. Those firms that are backed with private funding often place a higher premium on skills in operations rather than accounting. Cash flow driven by sales growth and operational excellence is more important to firms than that created by financial reporting.

People who have a good overall business background are the best candidates to work in the private equity accounting field the long haul. One should expect to posses experience in operations, leadership skills, ability to communicate well, financial modelling abilities and a charismatic persona that can inspire groups who find themselves highly pressured to do well.