Introduction
Private equity companies are companies that are open to accredited investors or those who are known to have high-net-worth and successful private equity managers who make great money from it a year. Private equity comes from high-net-worth individuals and firms that purchase stakes in private companies to take them private and de-list them from the stock exchange.
Training type for Private Equity Managers
The training type for Private Equity Managers could either be Online or Offline (Hybrid).
How long does it take to become a certified Private Equity Manager?
The average training duration for all levels in private equity management is a four years degree in Finance and Accounting, and other related fields. An experience in the financial sector is a requirement also.
Qualification required to become a Private Equity Manager
Bachelors / HND (Higher National Diploma)
Secondary school department for Private Equity Management
The suitable department suitable for private equity management for students in secondary school is the commercial
The tertiary fields for becoming a Private Equity Manager
The tertiary field for private equity management includes:
- Finance
- Accounting
and any other related courses
Career path for Private Equity Managers
Private equity managers’ career path is firstly the acquisition of the average certification training(tertiary degree). Private Equity managers are known to be capable of raising funds(capital) from outside investors and using this capital to buy companies, operate and improve them, and then sell them to realize a return on their investment which is basically what their job entails. As a private equity manager, you must do a little fundraising, operational management, and investment. Being a private equity manager could be because private equity offers high compensation and better work hours than investment banking, and more interesting work.
Professional grades in Private Equity Management
In private equity management, we have six grades in this field which include:
- Analyst
- Associate
- Senior Associate
- Vice-President
- Director or Principal
- Managing Director or Partner.
How long does it take to get promotions In Private Equity Management?
The key differences at each level of the private equity career path lie in the work tasks, promotion time, and compensation.
However, the average duration of each profession stage is;
The lowest level in private equity management is the Analyst. Becoming an Analyst requires the average certification in Private equity(Degree in Finance, Accounting, Economics, etc).
Promotion from Analyst to becoming Associate requires an average work experience of 2-3 years.
The average work experience in becoming a Senior Associate also requires an average year of 2-3 work experience as an Associate.
The average requirement year for becoming a Vice President is 2-3 years of work experience. However, the average duration of a Director or Principal in private equity is an average year of 3 to 4 years being a Vice President, while it also takes 3-4 years of experience being the Managing Director or Partner.
How much is the Private Equity Manager’s average salary at each level?
The average annual salary of each professional grade in United State Dollars is:
- Analysts – $100-$150K
- Associate – $150-$300K
- Senior Associate – $250-$400K
- Vice President – $350-$500K
- Director or Principal – $500-$800K
- Managing Director – $700K-$2M
What is the work type for a Private Equity Manager?
Private Equity managers could either work from home or work in an office (Remote and On-site)
Work shift type for Private Equity Managers
The private equity work shift is usually like the traditional work shift for bankers. It’s a 9 am to 7 pm office work.
How many hours do Private Equity Managers spend at work daily?
The average hours spent at work by private equity managers is average of 10 hours a day.
Occupational hazards in Private Equity Management
- Technology risk: To be effective, technology risk management must measure the firm’s portfolio of companies. Risk at a portfolio company poses risk to the private equity firm
- Third-Party risk: As their investments expand, private equity firms engage third parties to perform services. Doing so exposes Private equity firms to outside contractors, who can easily damage the firm’s reputation and investments
- Fraud and Misconduct risk: Firms that are highly motivated to sell a portfolio company can become victims of fraud caused by an outside force. This is common among firms that have holdings in foreign markets
- Cyber risk: Private equity firms face several cyber threats, whether it’s from employees, third, parties, or other outsiders
- Crisis Management risk: When a corporate crisis hits, the ability to respond quickly is paramount for preserving the reputation and ensuring continued success for any Private equity firm.
Gender distribution in Private Equity Management
There’s no gender distribution in the Private equity management field. Both certified males and females can be a professional in private equity management.
Talents suitable for Private Equity Managers
As someone considering to be a professional in this field, you must possess the:
- a competitive spirit
- be a high achiever
- hardworking
- attention to detail
- a critical thinker
- smart
- a good negotiator.
What is the retirement age for Private Equity Managers?
Research showed that the average retirement age in the private equity management sector is 59 – 60 years of age.
How relevant is a Private Equity Manager in other countries?
Private equity management is very popular in all countries that deal with investment and banking, this has made private equity managers so important worldwide.
Related field to Private Equity Management
Investment banking
Branches of Private Equity Management
- Shareholder loans
- Preferred shares
- CCPPO shares
- Ordinary shares
