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An Overview ofPrivate Equity Careers     © Copyright Job Search Digest
The Private Equity Industry    • Private equity (PE) firms invest in      non-publicly traded companies           – Top fi...
Leveraged Buyout (LBO)• Taking control of established firm via  leveraged financing techniques• Research shows that compan...
Mezzanine Financing• Availability of               • Less risk & lower  capital                         ROI than equity-  ...
Venture Capital (VC)    • Focuses on growth of a company           – Launch new products or services    • Funds raised by ...
VC Industry• Less positive reputation      – Company founders not supported      – Deal terms often viewed as “vulture-lik...
Investor Returns• PE firms provide returns  by successfully exiting the  investments                                • Achi...
The PE Model is Changing                Traditional model is                breaking                • Use of financial eng...
International PE Jobs                                • Will play an important                                  role in the...
PE Job Skills Needed• Firms backed by               • Best suited for long  PE tend to value                term PE career...
Thank You                                        Visit JobSearchDigest.com                                           for m...
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Overview of Private Equity Careers

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http:www.jobsearchdigest.com
Review of the PE industry and career opportunities, including internationally.

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Overview of Private Equity Careers

  1. 1. An Overview ofPrivate Equity Careers © Copyright Job Search Digest
  2. 2. The Private Equity Industry • Private equity (PE) firms invest in non-publicly traded companies – Top firms provide tremendous PE job opportunities • PE investments can take various forms: – Leveraged Buyout (LBO) – Mezzanine Financing – Venture Capital (VC)© Copyright Job Search Digest
  3. 3. Leveraged Buyout (LBO)• Taking control of established firm via leveraged financing techniques• Research shows that companies with PE owners tend to outperform public industry indices – Revenues & margins improve; jobs are created• Some top PE firms: Kohlberg Kravis Roberts & Co, Carlyle Group, Goldman Sachs, TPG & Apollo Management© Copyright Job Search Digest
  4. 4. Mezzanine Financing• Availability of • Less risk & lower capital ROI than equity- – Challenge in PE based investments• Mezzanine investors – Focus on debt side – Provides more seniority than equity shares© Copyright Job Search Digest
  5. 5. Venture Capital (VC) • Focuses on growth of a company – Launch new products or services • Funds raised by VC firms tend to be smaller than LBO • Early stage financing – Known as “seed round” • Later stage – Focus less on launch & more on market expansion© Copyright Job Search Digest
  6. 6. VC Industry• Less positive reputation – Company founders not supported – Deal terms often viewed as “vulture-like”• Founders often see their stake in company reduced significantly even when growth plans are achieved© Copyright Job Search Digest
  7. 7. Investor Returns• PE firms provide returns by successfully exiting the investments • Achieved in one of 2 ways – Company goes public (IPO) – Company is sold for a price higher than purchased© Copyright Job Search Digest
  8. 8. The PE Model is Changing Traditional model is breaking • Use of financial engineering Focus will be on: (e.g. high leverage, arbitraging higher exit • Locating good companies that are multiples) undervalued • Driving profitable growth to generate good returns© Copyright Job Search Digest
  9. 9. International PE Jobs • Will play an important role in the next decade – Especially in Asia & India• PE investments will likely increase in rapidly growing (China & India) and resource-rich countries (e.g. Russia, Brazil, Indonesia & Australia)© Copyright Job Search Digest
  10. 10. PE Job Skills Needed• Firms backed by • Best suited for long PE tend to value term PE careers operational vs. – Business professionals with: accounting skills • Operational experience – Focus on cash flow • Leadership ability driven by operational • Communication skills excellence & sales • Financial modeling skills growth • Ability to inspire teams under pressure to perform© Copyright Job Search Digest
  11. 11. Thank You Visit JobSearchDigest.com for more information © Copyright Job Search DigestImages used with permission from Microsoft

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