Private equity firms like to hire winners. They want the elite investment bankers and graduates who can demonstrate the sort of qualities that will set them apart.
This also means getting a top-class degree from,the ‘right’ – read top – university. But an undergraduate degree is one thing. How will professional certifications and Masters' degrees help your chances?
The biggest boon to a private equity job application, perhaps surprisingly, is a Masters in Finance degree. Our figures, based on the people on the CV database, suggest that 27% of private equity professionals possess a Masters degree, compared to 23% with an MBA – the more traditional method of getting a private equity job.
Masters in Finance degrees are increasingly important for securing an investment or reporting job in private equity,” says a managing director at a Private Equity Firm. “MBAs are still important for associate level hires, but they need to becombined with experience– whether that’s PE or investment banking.”
Once again, the CFA also ranks relatively high in the alternative investment sector.22% ofassetmanagementprofessionalsonthe database have studied the CFA, and this figure is 18% in private equity.
A lot of limited partner private equity firms will hire undergraduates and then put them through the CFA. It’s rare for direct investment firms to do the same. However, we also see a lot of junior investment bankers with CFA level one, as it shows both technical knowledge and evidence of commitment.”
Mid-market private equity firms also tend to favor those with an ACA accounting qualification – who often come from the Big Four – largely because senior partners at these firms also possess the qualification. However, our findings suggest that just 2% of private equity professionals have an ACA.
If you are an African based candidate who think you possess the kind of skills, qualifications and experience our clients are seeking, please emailus at hello@talentstoneafrica.com
Are you a diaspora African looking for opportunities in Africa, pleaseclick here
FAQs
Fully agree with Pedro here - CFA is not necessary and doesn't really give you an advantage. Most of the work is CDD, as you point out, so as long as you can read and interpret financial statements, you're good. Was this answer helpful? Not necessary, but can be helpful if you already have it.
Can you get into private equity with ACA? ›
Earning such certifications can expand your knowledge base and can give you a competitive edge over other candidates. Some of the best certifications for an aspiring private equity associate to achieve include: Associate Chartered Accountant (ACA)
Is CFA or MBA better for private equity? ›
The MBA is better suited to people who are more interested in general management and executive leadership. MBA career paths tend to be more popular with people in investment banking, private equity, and corporate development. MBA programs typically include a lot of networking, which is one of their main benefits.
What professional qualifications do you need for private equity? ›
Private equity firms usually look for entry-level associates with at least two years of experience within the banking industry. Investment bankers usually follow the PE firm career path as their next job and typically have a bachelor's degree in finance, accounting, economics, and other related fields.
Is an MBA necessary for private equity? ›
Although most large private equity firms look exclusively for job candidates with an MBA, you can still get into a smaller firm without one. Smaller firms prefer candidates with an MBA, but it's not always a requirement.
What master's is best for private equity? ›
The MSc in Finance and Private Equity is ideal for those seeking a generalist finance master's with an integrated specialisation in private equity.
Can you get into private equity with an MBA? ›
But while the traditional path to work in PE is via an MBA, an alternative path is gaining popularity. An increasing number of private equity firms — including Blackstone, Pantheon Ventures, and Oaktree Capital Management — are recruiting folks directly from their undergraduate degree.
Can you go into private equity from MBA? ›
As discussed, an MBA is essential for breaking into the realm of private equity. Beyond this, however, you will want to tailor your MBA program based on your unique professional goals.
How to get into private equity after an MBA? ›
Getting into private equity directly after an MBA is nearly impossible unless you've done investment banking or private equity before the MBA. You could complete the MBA, use it to win a full-time investment banking job, and then recruit for private equity roles…
Which is harder, CFA or MBA? ›
CFA Is Grueling and Prolonged
Some very motivated individuals get both MBA and CFA credentials, giving them training in both the broad and more specific aspects of business, wealth, and portfolio management.
According to the CFA Institute, this credential "is the professional standard of choice for more than 31,000 investment firms worldwide."1 It can be especially helpful if you don't have an undergraduate degree in finance, economics, or accounting, and your goal is a job or career in the finance industry.
What is the average age of CFA members? ›
The average age of men and women CFA members is about 42 years old, and both men and women are well educated (though men are more likely to have a graduate degree).
How much does the average person in private equity make? ›
What Is the Average Private Equity Firms Salary by State
| State | Annual Salary | Monthly Pay |
|---|
| California | $89,038 | $7,419 |
| Maryland | $88,832 | $7,402 |
| Tennessee | $88,240 | $7,353 |
| Utah | $87,969 | $7,330 |
46 more rowsThe primary qualifications for becoming a vice president in private equity are an MBA and several years of experience in private equity. Most vice presidents move through several other positions first, including analyst, associate, and senior associate before finally getting a job as a vice president.
How do I change my career to private equity? ›
Make contacts within the industry. Talk to PE funds and let them know that you're looking for a role. Show them that you're addressing the gaps that exist in your resume with courses, learning, practice, etc. Take courses: Ideally, do a private equity related course at a prestigious university.
Do you need a CFA in investment banking? ›
A bachelor's degree and or a master's degree in a related field is often required to become an investment banker. Investment bankers often start their careers as analysts and do so by earning the CFA charter. Independent investment banks often pay higher bonuses to entry-level investment bankers.
Do investment bankers need to take CFA? ›
The CFA covers plenty of material that goes beyond the job of an IB Analyst or Associate… which is exactly why you don't need it. For example, they won't ask about quantitative methods, derivatives, or portfolio management in a standard investment banking interview.
Do you need a CFA to work at a hedge fund? ›
Fund managers may need to acquire additional FINRA licensing depending on the size of the fund and type of assets invested in. Additionally, professional and educational credentials, such as a CFA charter or graduate degree in a relevant field, will come in handy.
Does CFA matter for investment banking? ›
Key skills for investment banking include financial knowledge, networking abilities, analytical skills, communication proficiency, and the capacity to work under pressure. A CFA qualification can equip you with these skills.
