Private equity companies are investment management organizations that acquire private businesses by gathering or pooling capital provided from institutional investors and high-net-worth individuals. These jobs are one of the most competitive careers in finance. Unlike venture capital companies, private equity organizations take majority stake when they invest in firms. They usually have major ownership of multiple organizations at once.

How to become a private equity professional?

If you are looking for a private equity career, this is the right time to make a move. Let us understand the advantages of working in private equity firms along with the required skill sets, qualifications, and certifications.

What are the advantages of working in PE?

For employees:

• Strong employment outlook: According to the U.S. Department of Labor, job opportunities for commodities, securities, financial analysts, and related firms are projected to grow by 37 percent by 2022 which is why private equity careers are in demand these days.
• Enriching: There is a heavy strategic and financial component embedded in a private equity career, which makes it enriching. You get to work on organizational transformation by designing a strategy, creating an investment thesis, and further evaluating the gains or losses that occurred by its implementation.
• Excellent pay: Certified private equity professionals have a great opportunity in this field to earn much higher than any other job position these days.

For businesses:

• Easy liquidity: Private equity is favored by organizations as it allows them liquidity access as an alternative to conventional financial mechanisms, such as banks loans with high interest.
• Growth strategies: PE financing can help de-listed companies who can attempt unorthodox growth strategies away from the public market glares. This is vital for such companies as they face the pressure of quarterly earnings which reduces the time available for senior managers to make money, cut losses, or experiment with new ways.

What are the skills required to work as a PE professional?

• Ability to research customers, competitors, and markets
• Understanding how management interventions could help businesses
• Ability to analyze and develop spreadsheets
• Strong knowledge of different industries like investment management companies, equity firms, and their business models.
• Must be adept at handling logical and analytical reasoning and handling multiple tasks.

Qualification and experience

• Candidates are required to have a bachelors’ degree in major topics like accounts, finance, statistics, economics, or any other related field.
• A minimum of two to three years of experience in this field is a must to work as a PE associate or a specialist.
• Apart from these requirements, private equity certifications add more value.

Which are the private equity certifications to earn?

A good and highly paid job role in a private equity career is a dream for every graduate these days. However, only a bunch of individuals are selected from tier-1 business schools to work for the coveted private equity sector. There are private equity certifications available for graduates and postgraduates who have missed the opportunity to enter this field. Earning these certifications will strengthen your manifolds for PE job roles.

Chartered Financial Analyst (CFA)

A large number of graduates earn this certification offered by the CFA Institute, every year given its importance and industry relevance. This certification alone can help you build a career in this sector. To earn this certification, one must be experienced in the financial field for at least four years and clear all three examination levels. Immense hard work and rigorous study are a must to successfully clear all these exams, given the qualifying rate is below 20 percent.

Chartered Private Equity Professional (CPEP^TM)

CPEP^TM is offered by the United States Private Equity Council (USPEC). This is a private equity certification program for aspirants who seek to professionally excel in this field. This credential elevates your employer appeal and knowledge and brings you to a level expected by venture capital and private equity organizations. This program effectively tops an individual’s current qualification in investment, business, finance, and accounting for smoothing the growth and entry in the private equity industry. There are four entry tracks to opt for this program.

• Track 1 requires a master’s degree in finance and a minimum of two years’ experience in the related field.
• Track 2 requires a bachelor’s degree with finance as a major and a minimum of three years’ experience in the related field.
• Track 3 requires MBA students to study in universities, institutions, and business schools recognized by USPEC.
• Track 4 requires candidates to possess a bachelor’s degree in finance and currently work in any of the finance sub-functions, with an active credential by FRM, CFA, or any other  USPEC recognized global certification body.

Certified Financial Planner (CFP)

CFP is offered by the Financial Planning Standards Board (FPSB). You must earn CFP private equity certification if you aim to be a financial planner.This certification highly focuses on client relationship management. To register for this program a candidate must possess a bachelor’s or a  higher degree in any discipline from an accredited university with at least 6,000 hours of professional experience in the financial planning process or 4,000 hours of apprenticeship that meets additional requirements.