A private equity associate participates in the entire process of private equity investment such as sourcing, company evaluation, structuring and negotiation, and monitoring of the current portfolio. Among other things, he is responsible for the preparation and review of fund-level financial statements including the consolidated balance sheet, income statement, and cash flows. The minimum qualifications needed in order to be hired as a private equity associate is a bachelor's degree and two or more years of full-time work experience in investment banking or management consulting. Someone with a bachelor's degree majoring in accounting is highly desirable since a private equity associate is expected to prepare and/or provide input to company financial reports. Thus, being a CPA is highly preferred. A private equity associate must also possess strong managerial skills. He or she must be proficient in the Microsoft Office productivity suite, including Word, Excel, Outlook, and Access. Familiarity with any of the private equity management solutions software programs, such as Investran, is highly desirable. Private equity fund companies and investment banks are the companies that employ top-quality private equity associates with great potential. Most private equity associates work regular business hours in their respective company offices, where they interact with their fellow associates and report directly to the vice president or principal partner. Their typical workday is mostly filled with client and prospective client telephone calls. There are times when a private equity associate is required to meet clients outside or his or her office and during off-hours. Out-of-town meetings and conferences may also be common occurrences. Additionally, private equity associates spend a great amount of time reading and analyzing materials that are relevant to their trade.
Private Equity Associate Tasks
- Assist in processing portfolio transactions.
- Conduct research to identify investment opportunities and carry out due diligence analysis.
- Perform financial analysis on clients' investment portfolios to determine potential returns.
- Present results of analysis and portfolio decisions to clients and management.