PER People - Private Equity Recruitment

Private markets is growing, as a result there are more jobs and an increasing variety of roles open to talented professionals.

You are most likely to join the industry as an Analyst or Associate. Don't be too concerned about job title - these vary from firm to firm and don't equate to the same job titles in other sectors.

You will need strong academic achievement, financial analysis skills and commercial acumen, irrespective of the role or segment of the private markets sector that you choose.

Find the role that fits your skills and personality and read how your career can develop in each of these.

Direct Investors

The direct investment funds acquire majority or minority stakes in mature, growing or early-stage businesses or assets, often using debt to enhance their equity return.

Private debt providers use the same financial and commercial skills to assess the debt requirement in these investments.

Acquisitions, buyouts, growth capital, buy and build, start-ups and seed capital are all examples of direct investment strategies. As are infrastructure and real estate investment.

What experience should you have
You're most likely to be successful in developing a direct investment career if you have experience from M&A, leveraged finance, lead advisory, transaction services or strategy consultancy.

For specialist strategies like real estate or infrastructure, exposure to the industry is helpful although not always necessary.

What skills do you need to demonstrate
You'll need to show great financial analysis skills, a robust commercial outlook and a winning interpersonal style. Relevant language skills or specialist sector experience can also be helpful.

You’ll also need to be determined and driven, keen to win with your team, self-confident and able to build and sustain a wide range of relationships, inside and outside of the fund.

What does the career path look like
The path to partnership is highly meritocratic, dependent on your performance and linked to the amount of investment experience that you gain.

As a rough guide, you can expect to spend two to three years at Analyst / Associate level and another couple of years as a Senior Associate, depending on when you join. It typically takes about five years to reach VP level. This is often where you will start to become meaningfully involved in a longer-term compensation scheme. This may be carried interest, co-investment or another form of long-term incentive plan.

From VP you will get the chance to move to Principal and then to Partner as you demonstrate deal leadership and deal origination success.

Fund Investors

What makes this different to direct investing? To develop a successful career as an LP, you'll need to show a collaborative and cooperative style. You’ll have strong qualitative insight as well as decent quantitative skills. You’ll be able to show intellectual curiosity and effective written and presentation skills. Your relationship-building skills will be excellent.

Starting your career here can lead to a broad international understanding of private markets. You'll get insight into the workings of many private markets funds, meet leaders in the sector and see the industry as a whole.

The career path starts with learning how to undertake due diligence on private markets funds, moving on to designing a portfolio allocation strategy and maybe fundraising and overall investment strategy.

Secondaries

Secondaries teams buy limited partner (LP) interests in private markets funds. The investments are technical and complex. To be successful, you will enjoy managing and analysing data and executing complex transactions.

What experience should you have

Secondaries firms tend to recruit from private equity, big four transaction services or valuations teams and M&A in investment banking.

What skills do you need to demonstrate

You’ll need to have strong analytical and transaction execution skills and show that you want to commit to the secondaries market.

What does the career path look like

The route to partnership is probably fastest in the secondaries market as it continues to grow as an investment class. If you are good, you could make VP or Principal in three years. Partnership depends on your ability to source and deliver superb investments.

You can establish a track record more speedily as timing to exit is faster in secondaries. Many secondaries players are global and the opportunity may exist to transfer internationally.

With great modelling skills and a creative view on how to turn future cash flows in to a well-structured investment, you can have a stimulating and rewarding career in secondaries.

Read our article on Secondaries by Richard Jones and listen to our podcast featuring Richard and James Ellis.

Investor Relations

Investor Relations is managing the relationships with the limited partners (LPs), building relationships with potential new investors and fundraising. Investor Relations has gained increasing prominence over the last few years.

The increasing demands from LPs for information and the need to put a compelling story together to fundraise has meant more job opportunities.

What experience should you have
Investor relations professionals tend to come from investment roles in private equity, financial control or fund administration, or externally from corporate finance.

What skills do you need to demonstrate
You need to show a good level of numeracy and excellent written style, be well organised and like the selling and relationship aspects of the role.

What does the career path look like
Careerwise, investor relations and fundraising are becoming increasingly important and there are clear routes to partnership.

As you progress, you are likely to gravitate towards either fundraising, which is sales-oriented and sometimes called distribution or business development, or client services, which focuses on the LPs and is sometimes referred to more generally as investor relations.

There is also a third area referred to as project management and is most commonly seen in placement agents or larger general partners (GPs). In this role you will be coordinating all aspects of the fundraising process.

Placement agents are intermediaries that support GPs in their fundraising.

This is a growing profession. It is a very good option if you have a relationship-driven style, strong verbal and written presentation skills and great attention to detail.

Marketing and Communications

What experience you should have
You'll need to have a strong academic background and financial services marketing experience.

What skills do you need to demonstrate
Good written and verbal presentation skills are essential.

What does the career path look like

Many marketing and communications professionals grow their career with the firm as it increases funds under management.

The route to Director level is clear. It would be more unusual to achieve Partner.

It is quite common for this role to be combined with investor relations in smaller funds.

Business Development, Origination and Research

What experience you should have
You'll probably have a background in M&A or consulting.

What skills do you need to demonstrate
You should be able to research markets and put together pitches, sometimes cold-calling to develop relationships.

There are a number of firms, particularly the large growth capital investors, whose Investment Analyst programmes include sourcing. In these roles, you will be expected to identify businesses within a sector and get to know the management teams with a view to building long-term relationships for future investment.

What does the career path look like

From a career development perspective, these roles vary from being research oriented to offering the prospect of moving into investment.

Financial Control and Fund Accounting

What experience you should have
These roles offer long and challenging careers for qualified accountants who have worked in financial services audit and fund management or similar.

What skills do you need to demonstrate
As CFO you are the most senior non-investment professional in the business and may manage everything that is not direct investment as well as finance and accounting matters.

What does the career path look like

Some CFOs go on to become Head of Investor Relations because of their familiarity with limited partner (LP) requests and knowledge of the performance of the funds. CFOs have detailed insight into the workings of the private equity firm and tend to stay for many years with financial rewards on a par with the senior investment professionals.

Possible next steps for Financial Controllers or Funds Accountants are CFO or Finance Director.

Human Resources

What experience you should have
You will have come from a Human Resources role somewhere in financial services and will have had practical experience of recruitment, talent development and compensation.

Exposure to private markets is useful.

What skills do you need to demonstrate
This is a pragmatic role where you will be responsible for anything HR related within the organisation. Some larger funds have small teams of HR specialists.

HR works closely with the Partners in developing good people practices across the business.

What does the career path look like

Career progression is to Director and possibly to Partner level.

Administration and Office Management

Administration and office management is a fast-paced, exciting role within private equity. Within a private markets fund environment you could be managing anything from the investment process through to all aspects of running a busy, dynamic office.

What experience you should have
A good degree and work experience in an administrative role within financial services are essential. You may have worked for a bank, asset manager or professional services firm.

What skills do you need to demonstrate
Administrative roles in private equity require great organisational skills, attention to detail, high energy, a thick skin and an ability to do at least ten things at once.

What does the career path look like

Experienced private equity support staff are generally compensated towards the top of the market for administrative roles.

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