Private Equity is often hard to get into and means they have careers in the same field for an average of 25 to 30 years. Would they have careers if they decide to move? Let's explore their options.
1. Hedge fund choices:
Many PE professionals get bogged down by the frustrating pace and sheer tedious tasks of administration. It takes lots of time to succeed at making deals and more longer to make substantial profits.
No one becomes an overnight millionaire in PE. You wait for a good 5-10 years. That's when the choice of moving towards hedge funds makes sense and is more lucrative. There exist similarities between PE and hedge funds which makes the junior levels can make a quick switch.
2. Venture capitalist ventures:
Few of the PE professionals find lack of excitement in large deals and seek out investments in performing start-ups and land up switching to funds like VC. A focus on Media, Healthcare and Technology sectors causes the movement to VC favored segments such as these.
3. Own fund launching:
This dream of many sees these professionals launching out with their own. This is more so in the case of senior PE professionals with excellent performance records and good networks of clients.
4. Portfolio/ Corporate Company migration:
Continuously helping portfolio companies to propel growth PE professionals do decide to be employed with a portfolio company in senior positions like CFO, CEO, Business Development Head and so on. Besides being lucrative, you get company stock which makes huge profits when the exit of the fund is successful. The private equity skill-set can be effectively used in corporate finance and strategy with any company.
5. Return to consulting roles:
PE consulting strategy or investment banking is a choice you can fall back on when unhappy for any reason such as poor and failed fundraising, redundancy, unsustainable economic environment, or just that it is still a lucrative choice.
6. The Fund of Funds- Secondary funds:
PE professionals often leave to gravitate to fund of funds or secondary funds companies. The secondary funds form funds that buy portfolio companies using PE funds at steep discounts directly. The PE funds need liquidity for various reasons like exiting a particular sector or closing rapidly. The Funds of funds are mostly funds that place funds in PE companies rather than company investments.
7. Entrepreneurship is a choice:
Private equity professionals turn out to be highly entrepreneurial as they continuously generate viable business ideas at some point most likely when they are at junior levels. Private equity is a good starting point for becoming an entrepreneur. The networking opportunities and learning chances are awesome.
PE is truly the holy grail of financial professionals, and it makes sense to explore whether they do have choices if they decide to move. Such options and knowledge is why you should do a financial analysis course.
The courses offer a good grasp of basics, concepts, theoretical knowledge, practical skills and certifications that could help enhance your resume and career. They also offer boot camps, short term workshops, and knowledge valuable to enter the industry. Another advantage in such a course is of mentoring by certified and experienced industry aces that helps garner the latest best practices, techniques, skills, and practice on the latest trending technologies in the financial industry.
Consider professionals who know about careers in financial analysis and can mentor you effectively.