A private equity career is not a bed of roses, but with thorns too. Although life in the private equity industry is considered prestigious, the job comes with its challenges too. Let’s explore the advantages and disadvantages of a private equity career in detail here.

As per E&Y studies, the PE industry acts as the key player in the software industry. Recently, PE is defining the software landscape by providing access to the capital, holding software assets for a longer time, considering hybrid deals and PIPE (private investment in public equity) deals.

As they deal with billions of dollars, they look for highly talented employees and prefer to employ the most experienced talent in the US. They regularly hire recent graduates, veterans of the corporate from any industry. If you are seeking a private equity job, then you must know what you will get out of it.

We discuss the major advantages and disadvantages of working in private equity firms here. Take a look at the advantages first.

Advantages of working in the PE industry

A few of the advantages of working in Private equity firms are discussed here.

  • Private equity investment professionals have a strong employability rate and the rate is growing year by year. It is said that the rate of job increase at PE firms is more and grows faster as compared to any other finance occupations. The changing scenario like remote work, virtual operational due diligence, technology-backed processes demands enthusiastic and technology-oriented professionals.
  • Moreover, PE professionals earn fat paychecks. If the candidate possesses the recent skillset that industries look for, then the compensation is even higher.
  • As you step your career ladder and reach senior positions, you may get opportunities to use your experience and expertise to improve the growth and development of your firm and gain a better hold in the private equity market. It is beneficial at the personal and organizational level too.
  • You get opportunities to work in PE firms targeting different types of industries. It could be an information technology firm, transportation, pharmaceutical, healthcare, or consumer groups. You get wide exposure of industries by working in select industries and increase the marketability.
  • In established firms, the career path is established and predictable. It creates early opportunities for promotion because the performance of the fund as a whole will also influence your career track.

Let’s move on further and know a few disadvantages of working in the PE industry. It should be called challenges rather than disadvantages.

Challenges of working in PE Firms

  • Needless to say, getting into a career in private equity is very tough. You should have graduated from a top-tier business school, possess related experience in the investment banking industry or hedge fund, and have high networking.
  • The chances to move up in a small firm is low (maybe). Although the advantage of working in a small firm is that you get exposure to all kinds of work profiles (at times), many times, you may get promotion easily.
  • The work demands more hours of your day and there may be less time available to spend with your family. The breakneck pace and crisis management required in the industry call your attention always.
  • Ethnic minorities and gender parity are still clearly visible in the industry. The scenario is changing a lot today with more women stepping into the PE industry and there are inclusive and diverse employees.

To summarize…

To thrive in any industry for that matter, it is necessary to pursue new innovations, stay updated with the industry trends, and gain new learnings to drive growth. Upgrade your existing skills to stay in the race.