We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Education

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Are the Different Jobs in the Private Equity Industry?

Gerelyn Terzo
By
Updated: May 17, 2024
Views: 3,177
Share

Being employed in the private equity industry is largely tied to asset management, but it is not limited to that role. There also are back-end positions, or jobs that require accounting and bookkeeping and administrative skills to perform. Financial analysts, researchers and investment consultants also support private equity firms and investors with decisions. So although portfolio management titles are the most prominent, these are not the only jobs in the private equity industry.

Portfolio management at a private equity firm is front and center and is performed by the general partner, the most prominent position offered in the private equity industry. This professional is responsible for overseeing assets and large pools of money on behalf of investors and is responsible for the debts or liabilities associated with the firm. Investors could include large institutions such as financial institutions, pension funds and endowments, and they might also include wealthy individuals. The general partners earn management and performance fees based on the size of the fund and the returns earned over time.

A general partner probably has completed business school and earned a master's of business administration or another business degree. Finance is not the only background that is relevant to private equity, however. Private equity firms often specialize in a particular industry, such as retail, so executives from that industry can often transition into the portfolio management team at a private equity firm. This is because after the firm buys a company, the executives have to manage it, and if a former executive from the industry is on the investment team, this increases the amount of relevant knowledge being applied to run that portfolio company.

It is the function of private equity to acquire companies and assets with money pooled in a portfolio made up of investors' capital. Investment professionals must perform extensive research on potential investments before moving forward with an acquisition, so a solid research team is often an extension of the private equity firm. Internal research in addition to research performed by financial analysts who might be part of another financial institution are all considered integral parts of the private equity buyout process.

Back office tasks also are essential to run a private equity firm. These professionals could be hired in house, or the job could be outsourced. The services typically include financial reporting for the portfolio companies, tax compliance and risk management.

Private equity (PE) consultants offer advice to investors about where to allocate capital or invest. There are consultants who specialize in the private equity industry. The role of this financial adviser is to recognize where opportunities in the private equity industry reside and also to warn clients about risky investments. Although the consultant might not be employed by the private equity firm, this adviser still will have deep relationships within the industry to understand the investment opportunities for clients, who are investors.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Gerelyn Terzo
By Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in Mass Communication/Media Studies, she crafts compelling content for multiple publications, showcasing her deep understanding of various industries and her ability to effectively communicate complex topics to target audiences.

Editors' Picks

Discussion Comments
Gerelyn Terzo
Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in...
Learn more
Share
https://www.wisegeek.net/what-are-the-different-jobs-in-the-private-equity-industry.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.