Private Equity Associate job description (2024)

FAQs

What is the role of an associate in private equity? ›

Analysts and Associates perform many of the same tasks, but Associates are responsible for coordinating deals, working with outside advisors, and checking Analysts' work. They are also more likely to participate in fundraising and “firm representation” activities.

Private equity professionals work long hours and are highly competitive and must think critically, and have a passion for financial investing deals, not just following the markets. Other requirements to start a career in private equity are: Excellent grades and a notable transcript in school.

You will be responsible for sourcing and analyzing investment opportunities, conducting due diligence, and supporting the transaction execution process.

Investors need to know they can rely on what you say and the analysis you're producing. The average during a busy time for associates and analysts is usually around ~60-70 hours per week. But it's all dependent on how many deals and investments are on the go. The above hours will vary based on if there's a live deal.

Associates often have an data-centric background, are well-versed in financial analytics, and have specific work experience in a given industry. Because associates often network and fundraise, successful private equity associates also have strong soft skills in communication, negotiation, and public speaking.

Breaking into the private equity industry with minimal experience can be challenging, but it's not impossible. By leveraging your skills, education, and networking opportunities, you can get your foot in the door and build a successful career in this exciting and rewarding industry.

In private equity, you'll also be responsible for a lot of different tasks. The deal teams are lean and your decisions will have a high degree of permanence, which is why I'd say the stress level is overall higher in private equity than in banking. Very importantly, there's also no one around to check your work.

In short, if you're at a top mega fund, then you can expect to get paid between $350-$400k per year. These numbers reflect total compensation paid to private equity associates in 2022.

Private equity funds are illiquid and are risky because of their high use of debt; furthermore, once investors have turned their money over to the fund, they have no say in how it's managed. In compensation for these terms, investors should expect a high rate of return.

What is the difference between a PE analyst and associate? ›

A private equity analyst is usually primarily tasked with reaching out to companies (called “sourcing”); however, they can also start to assist with certain deal-related tasks. Meanwhile, the private equity associate is the primary executer of all deal-related diligence, including the financial model.

62% of job seekers rate their interview experience at BlackRock as positive. Candidates give an average difficulty score of 3 out of 5 (where 5 is the highest level of difficulty) for their job interview at BlackRock.

As for hours, both private equity and investment banking can be demanding careers. However, investment bankers tend to work longer hours, often working late into the night and on weekends. Private equity firms also tend to have a more relaxed work environment and offer more flexible hours.

Typically, analysts and associates can expect 80 hours per week, while VPs, Principals and Partners typically work 50-60 hours per week. PE firms are located in cities throughout the world, but no matter where a firm is based, travel is likely to be required.

Those who wish to broaden their horizons or simply desire a change of pace will often migrate to similar sectors such as hedge funds or portfolio management. Additional exit options include: Being hired as a chief analyst by another firm.

A private equity analyst is usually primarily tasked with reaching out to companies (called “sourcing”); however, they can also start to assist with certain deal-related tasks. Meanwhile, the private equity associate is the primary executer of all deal-related diligence, including the financial model.

In addition to their regular salary, equity partners also earn profit units. Non-equity partners help manage the law firm and have voting rights in the company, but they do not earn profit shares. Associate attorneys are regular employees. They make a salary and often receive benefits like health insurance.

As an investment associate, your responsibilities are to review the financial data and potential investments of a company to strategize the best plan to increase profits.

The basic Equity Research Associate job description is providing analysis of securities data to inform fund managers and aid them in the investment process. The job requires problem-solving expertise and a broad knowledge of the stock market to successfully interpret data into meaningful recommendations.