Private Equity Analyst
A Private Equity Analyst helps a private equity firm evaluate investment opportunities, support deal execution and monitoring portfolio performance.
What does a Private Equity Analyst do?
Private Equity Analysts support the full investment lifecycle by researching industries and companies to identify potential investment targets, and analyze market trends and competitive landscapes. They build detailed financial models to forecast company performance and perform valuation analysis. They also conduct due diligence on target companies, assist in deal execution, and monitor portfolio performance.
Key skills
- Analytical & quantitative
- Networking
- Problem-solving
- Financial modeling
Becoming a Private Equity Analyst
Qualifications
Private equity firms usually look for analysts with 1-4 years of experience within the finance industry. Investment bankers often follow the PE firm career path as their next job and typically have a bachelor's degree in Finance, Accounting, Economics, or other related fields.
Landing a career in private equity is very difficult. There are few jobs on the market so it can be very competitive.
Who hires Private Equity Analysts?
Private equity firms range from mega funds that have international operations to specialist or regional firms.
Check out a typical job description
Here are some requirements for a Private Equity Analyst role:
- At least a bachelor’s degree in Finance, Business, Economics, or a related field
- Previous experience in finance
- Strong analytical skills with proficiency in financial modeling, including LBOs and operating projections
- Knowledge of company valuation techniques
- Excellent written and communication skills, with the ability to engage effectively with management teams, investment professionals, bankers, and other key stakeholders
- Strong organizational skills and high attention to detail
- Ability to manage multiple projects effectively
- Excellent networking skills
Obtaining an internship within a private equity firm or starting off in a related career path like investment banking or management consulting will provide useful experience in this field of finance. PE firms are typically looking for individuals with assertive, independent, and analytical qualities.
Now let’s talk career progression
Where this role could take you
A role in private equity is a very competitive yet rewarding career path. Private equity professionals can advance fast within a firm but typically start as junior associates or analysts.
The main difference between a junior analyst and a senior analyst is independence. Senior associates spend their time seeing a deal through from start to finish.
You’ll also be expected to generate ideas as you progress from junior to senior associate, enabling you take on more responsibility in decisions.
Your future
From a senior analyst position, you could move up to Vice President. VPs have more of a communications role than junior positions. They deal less with data sorting and more with client relations and presentations. Technical skills matter less than negotiation abilities at this level. VPs also are responsible for in-house management and mentorship of associates.
A Director is one step away from Partner. Directors oversee fundraising as well as facilitating deals. Most of the execution is delegated to more junior team members while the Director handles the final negotiations and major company decisions.
Partners focus mainly on company representation, funding, and client relationships. This job has no technical component, but negotiation skills are required to present and convince Limited Partners (wealthy individuals or institutional investors) to provide capital. Partners are also required to invest a portion of their wealth into the company to invest in their team.
The right role for you?
Starting a career in private equity is competitive and typically requires relevant experience and a robust set of skills. Private equity professionals typically work long hours in a high-pressure environment. You must think critically and have a passion for financial investing deals, not just following the markets.
Find your fit in finance
Have you checked out our quiz yet? Discover which finance career paths align with your passions, strengths, and values.