Last updated on Jul 3, 2024

Here's how you can switch to Private Equity from a different industry.

Switching to a career in Private Equity (PE) from a different industry can seem daunting, but with the right approach and understanding, it's a transition that can be achieved. Private Equity involves investment funds that acquire and manage private companies, often with the intent of improving their value and selling them for a profit. If you're looking to make this switch, you'll need to familiarize yourself with the industry's unique characteristics, prepare to leverage your existing skills, and be ready to gain new expertise.

1 Understand PE

Private Equity is a form of investment where funds and investors directly invest in private companies or engage in buyouts of public companies, resulting in their delisting from public stock exchanges. To switch into this field, you need a solid understanding of financial modeling, valuation techniques, and the process of raising and managing funds. Familiarize yourself with the life cycle of a PE investment, which includes sourcing deals, performing due diligence, structuring transactions, and eventually exiting through a sale or IPO.

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Manav Shah

Spreading Information about Alternative Investments | Solving Data Problems | Content Creator | CFA L2 Candidate | Top Voice - Private Equity | PowerBi | Power Automate
Financial Acumen: Develop a strong understanding of financial analysis, valuation, and modeling. Consider taking courses in finance, accounting, and economics. Industry Knowledge: Acquire knowledge about the private equity industry, including market trends, investment strategies, and key players. Online courses, books, and industry reports can be valuable resources.
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2 Assess Skills

Your current skill set can be a valuable asset in Private Equity. Analyze your experience for transferable skills such as financial analysis, project management, or industry-specific knowledge that can provide an edge in PE. For example, if you come from a healthcare background, you might have insights into the operational challenges and growth opportunities within that sector, which is valuable for healthcare-focused PE funds.

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Abhishek Sankritik

COO || GC || Director || Building Rooba.finance || Tokenization | Regulatory Hacking | Product Development
Deal sourcing and identifying which opportunities are worth investing is by far the most crucial skill in the private equity industry. While valuations, financial modelling, roadmaps and due diligence provide the foundation for determining whether an investment should be considered, it isn’t everything. Crucially, great investors and managers have the knack of sniffing out the intangibles. Do the founders have good chemistry? The problem statement may sound fantastic, but your insight in an industry tells you that it’s not a product, it’s a feature. If these decisions were just math, you wouldn’t need experts.
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Abhishek Sankritik

COO || GC || Director || Building Rooba.finance || Tokenization | Regulatory Hacking | Product Development
Deal sourcing and identifying which opportunities are worth investing is by far the most crucial skill in the private equity industry. While valuations, financial modelling, roadmaps and due diligence provide the foundation for determining whether an investment should be considered, it isn’t everything. Crucially, great investors and managers have the knack of sniffing out the intangibles. Do the founders have good chemistry? The problem statement may sound fantastic, but your insight in an industry tells you that it’s not a product, it’s a feature. If these decisions were just math, you wouldn’t need experts.
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3 Learn Finance

A strong grasp of finance is crucial for a successful transition into Private Equity. If your current role hasn't given you this foundation, consider pursuing formal education or certifications such as the Chartered Financial Analyst (CFA) program. Additionally, practical experience with financial modeling and valuation is essential. You can find resources and courses that specifically cater to PE practices or even use online platforms to simulate investment scenarios.

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4 Network Actively

Networking is key in the PE industry. Start building relationships with professionals in the field through industry events, online forums, and alumni networks. Show genuine interest in their work and seek advice on making the transition. These connections can provide insights into the industry and potentially lead to job opportunities. Remember, Private Equity is a tight-knit community, and referrals can significantly impact your job search.

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5 Gain Experience

Hands-on experience is invaluable, so consider roles that can bridge the gap between your current industry and Private Equity. This might involve working in corporate development, investment banking, or strategy consulting. These positions offer exposure to deal-making and strategic decision-making processes similar to those in PE. Additionally, they can help you build a track record of relevant experience that will be attractive to PE firms.

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6 Tailor Resume

When applying for PE roles, tailor your resume to highlight your most relevant experiences and skills. Use language that resonates with PE professionals, emphasizing your achievements in financial analysis, deal execution, or sector expertise. Showcase any experience that demonstrates your ability to identify and grow business value, as this is at the heart of what PE firms do. A well-crafted resume will help you stand out in the competitive PE job market.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can switch to Private Equity from a different industry.

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1 Understand PE

2 Assess Skills

3 Learn Finance

4 Network Actively

5 Gain Experience

6 Tailor Resume

7 Here’s what else to consider

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