Forex Hedge Fonds London

Jetzt gibt es eine einfache Schlüsselfunktion für erfolgreiche Händler, ihre eigenen Spot Forex Fund zu gründen, wo: Sie sind der Fondsmanager Sie verdienen die Incentive-Gebühr Sie steuern die Investment-und Handelsstrategie. TURN KEY HEDGE FUNDS, INC bietet Ihnen: Der Turn Key Start zu einem Bruchteil der traditionellen Start-up-Kosten. Das schlüsselfertige Backoffice, das es Ihnen erlaubt, die allgemeinen Operationen zu steuern, ohne die Verantwortung für den täglichen Betrieb zu übernehmen. Der Turn Key Start up kann Ihnen eine Einführung in Broker und Gegenparteien für Forex-Handel. TURN KEY HEDGE FUNDS, INC. Ermöglicht es dem erfolgreichen Trader oder Broker, ein Hedge-Fonds-Manager zu einem Bruchteil der traditionellen Anlaufkosten zu werden und bietet darüber hinaus eine fortlaufende Backoffice-Unterstützung. Jetzt können Sie Ihren eigenen Fonds starten Das Aussehen einer ständig wachsenden Zahl von FX Market Making Häuser bedeutet, dass jetzt, FX Trader sind jetzt in der Lage, schnell und effizient starten ihre eigenen SPOT CURRENCY HEDGE FUND mit minimalen Kosten mit minimalen regulatorischen Aufsicht und mit Leichtigkeit Und Effizienz. Als FX Trader, können Sie quotturn Keyquot in den Betrieb Ihres eigenen Spot Currency Hedge Fund. Sie bieten die Trading-Fähigkeit und Fähigkeit und TURN KEY HEDGE FUNDS, wird INC machen es passieren Keine Anstrengungen, kein Problem, wir machen es nur geschafft TURN KEY HEDGE FUNDS, Inc. hat eine Reihe von Kontakten mit Devisenmarkt Entscheidungsträger, die werden Bieten dem Devisenhändler Trading-Möglichkeiten, die früher nur für große Banken und Brokerfirmen zur Verfügung stehen. Die FX-Händler werden mit Online-Handelsplattformen sowie Unterstützung bei ihrer Nutzung einschließlich Back-Office-Support, Technologie, Compliance-Unterstützung, mögliche Kapitaleinführung und viele weitere Vorteile bereitgestellt werden Währungen sind ein Over-the-Counter-Produkt, und als solche nicht notiert oder gehandelt werden Spezifischen Austausch. Die Preise werden von zahlreichen aktiven Market Makern wie Banken, Spezialwährungsmaklern oder anderen Finanzinstituten notiert. Es gibt keine Standard-feste Kontraktgröße, keine Provisionsgebühren oder sonstige zusätzliche Transaktionskosten. Alle angegebenen Preise sind zwei Wege, d. h. ein Angebot und ein Angebot (der Spread). Dieser Preis ist inklusive aller Handelskosten. Die Spanne kann je nach Marktlage und Liquidität variieren. Die Preise können je nach Liquidität variieren und ändern sich ständig. Der Markt ist rund um die Uhr lebendig und folgt der Sonne rund um den Globus. Es ist möglich, effizient auf dem Markt von 20:00 Uhr GMT Sonntag bis 21: 00GMT Freitag. Positionen können jederzeit während dieser Zeit geöffnet und geschlossen werden. Die internationale Terminlinie befindet sich im westlichen Pazifik, und jeder Geschäftstag kommt zuerst in den Asien-Pazifik-Finanzzentren zuerst Wellington, Neuseeland, dann Sydney, Australien, gefolgt von Tokio, Hongkong und Singapur. Ein paar Stunden später, während Märkte in diesen asiatischen Zentren aktiv bleiben, beginnt der Handel in Bahrain und anderswo im Nahen Osten. Später, wenn es spät am Geschäftstag in Tokio ist, öffnen sich die Märkte in Europa für Unternehmen. Bemerkenswerterweise ist die europäische Zeitzone die aktivste, wobei etwa 2 3 aller globalen Transaktionen durch London geklärt werden. Anschließend, wenn es am frühen Nachmittag in Europa ist, beginnt der Handel in New York und anderen US-Zentren. Schließlich, wenn der Kreis, wenn es Mitte oder am späten Nachmittag in den Vereinigten Staaten ist, am nächsten Tag im Asien-Pazifik-Gebiet angekommen ist, haben die ersten Märkte dort eröffnet, und der Prozess beginnt wieder. Der 24-Stunden-Markt bedeutet, dass sich Wechselkurse und Marktbedingungen jederzeit als Reaktion auf globale Entwicklungen jederzeit ändern können. Alle von der Partnerschaft gewählten Handelsträger müssen über einen 24-Stunden-Handel verfügen. Dies ist der einzige Markt, auf den die Anleger reagieren und potenziell von jedem wirtschaftlichen, sozialen und politischen Ereignis profitieren können, wenn es Tag und Nacht eintritt. Für weitere Informationen über das Starten eines Forex Hedge Fonds oder wie Sie einen FOREX Hedge Fonds zu starten, kontaktieren Sie uns bitte per E-Mail oder (888) 263-4774.Private Equity Interview Vorbereitung Nachfolgend finden Sie einige gute Tipps von Spezialisten Recruiting Firma KEA Consultants über die Private Equity Recruiting-Prozess. Das Private-Equity-Interview-Verfahren ist von Anfang bis Ende schwierig. Die meisten Unternehmen werden einen Kandidaten über drei bis vier Runden interviewen, aber es gibt Fälle, in denen es so viele wie zehn Runden sein kann. Es hängt alles von der Firma, die Anzahl der Menschen, die sie wollen Sie treffen und die Prüfung beteiligt. In einigen Fällen können Sie über SHL-Typ-Tests testen Ihre verbalen kommen. Numerische oder logische Fähigkeiten. Allerdings sollten alle Kandidaten für allgemeine CV-Übersicht Interviews, sowie die Fallstudie und LBO-Modellierung Runde vorbereitet werden. Die Mehrheit der Mid-Market und Large-Cap-Buyout-Fonds wird Kandidaten auf ihre Modellierung Fähigkeiten zu testen. Smaller Cap oder Wachstum Aktienfonds sind weniger wahrscheinlich, um diese Fähigkeiten zu testen, können aber eine Business Case Studie, wo Sie präsentieren auf einer privaten Investition. Alle Unternehmen wollen Ihre Wirtschaftlichkeit und Ihr Geschäft Sinn zu testen. Letztendlich müssen Sie als Einstiegskandidat beweisen, dass Sie den Übergang von der Verkaufsseite zur Kaufseite machen und wie ein Investor denken können. Der Schlüssel zu gut in jedem Interview ist Vorbereitung. Machen Sie Ihre Hausaufgaben für die Firma, die Profis und das Portfolio. Mindestens sollten Sie wissen, die fundrsquos Größe, wie lange sie herum gewesen sind, das Stadium, in dem sie investieren, welche Sektoren sie investieren und ihre Investorenbasis. Es wäre lohnend, durch ein paar der Investitionen, die das Unternehmen in der Vergangenheit gemacht hat, zu bewerten und zu beurteilen, warum sie gute Investitionen waren (oder auch warum nicht) und wie sie die firmrsquos Anlagestrategie entwickelten. Ohne Fehler, bereiten Sie einige Fragen, die Sie die Investment-Profis bei der Firma fragen können, wo yoursquore interviewt, wie sie wahrscheinlich sind, Ihnen die Gelegenheit während Ihres Interviews zu geben. Diese können von der Nachfrage nach der Menge an Kapital zur Verfügung zu investieren reichen, um die Anzahl der Angebote der Firma Bildschirme zu einem beliebigen Zeitpunkt, zu fragen, insbesondere über eine neue Investition der Firma gemacht. Es gibt einige äußerst praktische Dinge, die Sie während des Interview-Prozesses tun können, um sicherzustellen, dass Sie sich am besten zu präsentieren. Die grundlegendsten und wichtigsten sind: Immer pünktlich sein, wenn nicht 5-10 Minuten früh für jedes Interview Stick zu einem geplanten Interview Zeit, um das Beste aus Ihrer Fähigkeit Vorbereiten Fragen für Ihre Interviewer Geben Sie einen festen Händedruck bei der Einführung und Abreise Immer machen Auge Kontakt mit Ihrem Interviewer Denken Sie sorgfältig über Ihre Antworten itrsquos besser, um eine zusätzliche Minute, die Ihre Gedanken zu strukturieren, als auf zu weit und ohne Fokus zu sprechen Sprechen Sie klar und mit Vertrauen, gleichzeitig versuchen, bescheiden zu sein und nicht zu aggressiv Denken Sie daran, dass Sie verkaufen Sich selbst, nicht umgekehrt Während der CV-Interview-Runden gibt es bestimmte Punkte und Fragen, die Sie speziell vorbereiten sollten. Wir haben unten aufgeführte Beispiele für Sie zu denken. Dies ist keine abschließende Liste, aber es sollte Ihnen ein Gefühl, was zu erwarten: Kennen Sie Ihren Lebenslauf. Müssen Sie in der Lage sein, Fragen zu irgendetwas auf Ihrem Lebenslauf zu beantworten. Wenn yoursquove mehrere Transaktionen aufgeführt, dann stellen Sie sicher, dass Sie wirklich wissen, was passiert ist und wissen Sie die relevanten Zahlen: IRR, Schulden Eigenkapitalquote, Preis, Gewinn multiples etc. Übung zu Fuß durch Ihren Lebenslauf von der Universität in einem strukturierten 2-3 Minuten Überblick. Erzählen Sie mir von einem Geschäft auf Ihrem Lebenslauf: Wenn Sie aus Investment Banking sind, sollten Sie auf jeden Fall diese Frage erwarten. Wählen Sie ein Geschäft, das am wichtigsten für einen Private Equity Investor (entweder in der Industrie oder Art der Transaktion) wäre. Warum wollen Sie eine Karriere in Private Equity Ihre Antwort auf Ihre Erfahrungen, Fähigkeiten und relevanten Interessen, wie auf Ihrem Lebenslauf gezeigt. Warum interessieren Sie sich für unsere Firma Wenn yoursquove Ihre Hausaufgaben auf der Firma getan hat, dann sollten Sie in der Lage sein, diese Frage leicht zu beantworten. Von den Firmen, die Sie mit gearbeitet haben, das würde eine gute Private-Equity-Investition und warum Tailor Ihre Antwort auf die Firma, die Sie interviewen und bereit sein, in finanzielle Details gehen, warum Sie in diesem Unternehmen investieren würde. Erläutern Sie die Mechanik eines LBO-Modells Sie müssen in der Lage sein, entweder sprechen ein Investment-Profi durch diese, oder berechnen Sie eine einfache auf einem A4-Blatt Papier. (Siehe unsere Modelltests Seite, wenn Sie Praxis benötigen) Warum sind EBITDA und FCF wichtig für Private Equity Investoren Sie müssen den Unterschied kennen und erklären, wie sie in Bezug auf die neue Schulden geliehen für eine LBO verwendet werden. Was bestimmt, wie viel Schulden Sie auf ein Unternehmen setzen können Sprechen Sie über das Cash-Profil des Unternehmens und den Zustand des Schulden Marktes. Wie würden Sie Quellpotenziale Investitionen Geben Sie an, wie Sie Forschung und ermitteln Sie attraktive Ziele in einem Sektor. Denken Sie darüber nach, wo neue Private Equity-Deals getan worden sind. Erwähnen Vernetzung in einer Branche, durch Kälte-Calling, Konferenzen, Lesen von Fachpublikationen. Halten Sie es relevant für die Firma yoursquore Interview mit. Wie wichtig ist das Management in einem Private Equity Deal Sie sind extrem wichtig, gute Geschäftsbedürfnisse gute Manager. Erzählen Sie mir über ein interessantes Angebot in den Nachrichten vor kurzem Stellen Sie sicher, dass Sie eine klare Meinung über den Deal haben, die Sie gewählt haben, um Ihr Unternehmen Urteil zu demonstrieren. Was sind Ihre Gedanken über die Private-Equity-Industrie und oder eine bestimmte Branche das Unternehmen sieht wieder, eine Meinung haben. Wo sehen Sie sich in fünf Jahren Demonstrieren Sie Ihre Ehrgeiz und Engagement für Private Equity. Ein paar andere allgemeine Fragen. Was motiviert Sie Sagen Sie mir über eine Zeit yoursquove gescheitert Was sind Ihre drei wichtigsten Stärken Was machst du in deiner Freizeit Schließlich ist persönliche Passform wichtig. Da die Teams in Private-Equity-Gesellschaften kleiner sind als in anderen Unternehmen, ist die Persönlichkeitsanpassung ein wichtiger Bestandteil eines firmenübergreifenden Evaluationsprozesses. Denken Sie daran, sich selbstquote während Ihrer Interviews. Eine Private-Equity-Unternehmen wird nur wollen, Kandidaten zu mieten, dass sie sich fit fühlen sich mit der Firmrsquos Kultur und Ethos. Wenn Sie eingestellt werden, werden Sie mit den Menschen, die Sie interviewt auf einer intensiven Basis und mit starken beruflichen Beziehungen wird bestimmen, wie viel Sie Ihren neuen Job zu genießen und letztlich, wie erfolgreich Sie sind. Warum Private Equity Warum unsere Firma Unentwegt wird diese Frage bei jedem Private-Equity-Interview gestellt werden, und ist einer der kritischsten. Die meisten Banker, die gut vorbereitet und haben ein gutes Maß an Erfahrung sind in der Lage, alle technischen Interview-Fragen passieren, aber viele von ihnen scheitern auf eine überzeugende Antwort auf quotwhy PE, warum unsere Firma. Was sind die Private-Equity-Unternehmen auf der Suche, wenn sie fragen, warum PEW, warum unsere Firmquot Natürlich wird der Interviewer wissen wollen, Ihre Motivationen hinter dieser Arbeit, und auch hinter dem Beitritt ihrer Firma wissen. Allerdings ist die Frage tatsächlich viel komplexer, als Sie vielleicht denken. Private-Equity-Unternehmen wissen bereits, warum Menschen für ihre Unternehmen gelten: Prestige, besseres langfristiges Geld, weniger Stunden und der unternehmerische Aspekt. Aber sie sind wirklich auf der Suche nach den Antworten auf diese Fragen: 1. What39s fahren Sie beruflich und persönlich 2. Haben Sie getan einige Forschung über die Firma 3. Welche besonderen Fähigkeiten haben Sie, und wie können sie von Nutzen für die Firma 4 Werden Sie langfristige Strukturen bleiben, um die Frage am besten zu beantworten. Stellen Sie sicher, dass Sie die vier oben beschriebenen Punkte direkt oder indirekt ansprechen. Beachten Sie, dass die Frage ist eigentlich zweifach: 1) warum PE und 2) Warum unsere Firma. In den meisten Fällen ist es jedoch am besten, die beiden Fragen gleichzeitig zu behandeln, auch wenn sie gesondert gefragt werden. Zum Beispiel, wenn Sie nur fragen quotWhy PEquot, würde ich immer noch beantworten die quotWhy unserer Firma zugleich. Bei der Beantwortung empfehlen wir, die folgende Struktur zu verwenden: 1. Beantworten Sie, warum Sie PE zuerst mögen (Adressen Punkte Nr. 1 und 4). Für diese Frage muss es eine feste persönliche Motivation sowie eine berufliche Motivation geben. Gt Persönliche Beweggründe: Die in der Regel drehen um eine quotentrepreneurial spiritquot und der Wunsch, Investitionen zu tun und handeln als Auftraggeber. Große Geschichten gehören aus einer unternehmerischen Familie, einige Hinweise auf unternehmerische Aktivitäten, Risikobereitschaft oder herausragende Initiativen, in oder außerhalb Ihrer Arbeit. Gt Berufliche Motivation: In der Regel dreht sich um die Aspekte Ihrer Arbeit, die ähnlich oder verwandt mit Private Equity sind. Banker und Berater können erwähnen, Arbeit, die sie mit Private Equity und wie sie es genossen. Sie müssen nur zeigen, dass Sie wissen, die Arbeit, die PE beinhaltet. Punkte nicht zu erwähnen: Geld, Prestige, weniger Stunden, oder plainly saying Ich mag Investitionen tun. Eine weitere Gefahrenzone ist, persönlichen Aktienhandel zu erwähnen - sich bewusst sein, dass Aktienhandel kurzfristig und besser geeignet ist, Hedge-Fonds, nicht PE, so dass, wenn Sie erwähnen es sprechen über eine langfristige quotholdquot Strategie. 2. Zeigen Sie Ihr Wissen über ihre Firma (Adressen Punkt Nr. 2) Positive und Erfolgsfaktoren der Firma, die für Sie interessant sind: gt Strategie: Einzigartige Positionierung des Unternehmens, Sektorfokus, geografischer Fokus gt Aktuelle Fundraising - oder Expansionsphasen: Große neue Fonds, neue Büros, neue Partner gt Große Investitionen oder Exits, die sie getan haben: Erwähnen Sie alle bekannten Details, um Wissen zu zeigen gt Stärke einiger Partner (dh die prominenteren Zahlen): erwähnen Namen 3. Binden Sie in der Firma positive mit Ihren Fähigkeiten (Adressen Punkt 3 und 4) Dies ist der schwierigste Teil - Sie brauchen, um die firm39s Strategie, um Ihre Fähigkeiten zu binden. Dieser Teil wird mit jedem einzelnen variieren, aber diese sind die häufigsten Rationalen: gt Sprachkenntnisse, die in der Fonds regionale Expansion Strategie. Zum Beispiel haben Sie mehrere Investitionen in Frankreich gemacht, und als französischer Sprecher würde ich wirklich gerne an einigen dieser Portfolio-Unternehmen zu arbeiten. quot Oder quot Ich spreche drei europäische Sprachen, so mag ich Ihre pan-europäischen Fokus, quot etc. Gt Branchenerfahrung, die sich an den Sektor konzentriert. Zum Beispiel: "Ich arbeitete an drei Medien-Transaktionen und wirklich genossen die Arbeit, so dass ich glaube, ich würde wirklich lieben, in einem TMT-fokussierten Private-Equity-Unternehmen wie z. B. Yoursquot gt Show relevante Geschäftserfahrung. Zum Beispiel: Ich habe für drei Jahre im Investment Banking und mit mehreren Private-Equity-Kunden gearbeitet, so bin ich gut bewusst, die starke Reputation Ihrer company. quot gt quotBusiness acumenquot oder quotbeliefquot. Grundsätzlich wäre dies etwas sagen, dass Sie glauben, dass die PE-Firma gut positioniert ist, und das ist, warum Sie wollen, sich ihnen anzuschließen. Auch hier können Sie erwähnen, ihre starke Erfolgsgeschichte, schöne Positionierung, große Management, und all jene Erfolgsfaktoren, die Sie wollen, um sie zu verbinden. Sie erhalten Bonuspunkte, wenn Sie: - Sie haben direkt an die PE-Firma gelangt, ohne durch Kopfjäger zu gehen (zeigt Initiativen, Glaubwürdigkeit) - Sie erhalten von einem Mitarbeiter, der bei der Firma (Alumni, Freund) arbeitet, eine Quotechampion. Wenn Sie empfohlen, erwähnen Sie diese Tatsache. - Sie arbeiteten an einem Geschäft mit der Firma (als Bankier oder Berater, vorausgesetzt, Sie haben es gut getan) - Sie befassten sich mit Unternehmen, die sie über den Kauf (Bankiers und Berater: prüfen Sie alle Bieter für die Angebote auf Ihrem Lebenslauf) zu beschäftigen Private Equity LBO Modeling Test Die meisten Private-Equity-Firmen geben Ihnen Modellierungstests, um Echtzeit in ihren Büros komplett zu vervollständigen. Ohne Praxis, kann dies eine Herausforderung sein, auch für erfahrene Investmentbanker. Hier sind ein paar Tipps und ein Beispiel für einen Test, den Sie wahrscheinlich erhalten: LBO-Modellierung Tipps Tipp 1: Verbringen Sie genug Zeit, um alle Anforderungen richtig zu verstehen Lesen Sie im Detail die bereitgestellten Informationen, sowie was gefragt wird. Oft beantworten die Kandidaten die Frage nicht, indem sie versuchen, zu viel zu tun oder Zeit zu verschwenden, da sie Komplexitäten hinzufügen, die nicht erforderlich sind. Tip2: Halten Sie immer Modelle einfach Versuchen Sie nicht, offshow offquot durch den Aufbau komplexer Modelle und erweiterte Funktionen. Erstellen Sie ein praktisches Modell, das die Frage nur beantwortet, wenn Sie genug Zeit haben, dann fügen Sie ein paar erweiterte Funktionen oder bereinigen die Formatierung, aber das ist nicht notwendig. Tip3: Beobachten Sie Ihre Zeit, und wenn Sie nicht mehr Zeit haben, vereinfachen Wenn Sie an einem Punkt stecken bleiben, vereinfachen Sie es einfach, stellen Sie eine IRR-Ausgabe bereit. Wenn Sie nur die Hälfte des Modells zu bauen, dann Ihre Fähigkeit, eine volle LBO bauen kann nicht beurteilt werden. Aber wenn Sie eine Abkürzung auf einige Teile, aber immer noch die volle LBO und IRR Berechnungen, können Sie in der Lage, weg mit ihm. Tip4: Haben Sie eine gut geübte Schablone im Verstand Vergewissern Sie sich, dass Sie eine sehr gut geprobte grundlegende Schablone im Verstand mit den folgenden Einzelteilen haben: - Einfache Quelle und Gebrauchtabelle (ein oder zwei Zweige der Schuld). Geben Sie hier Ihre Eingabe ein: Grundeinkommen (EBITDA, EBITDA, Dampa, EBIT, Steuern, Zinsen, Reingewinn). Lassen Sie Interesse leer und verknüpfen Sie es später von Ihrem Schuldenplan. - Kapitalflussrechnung (EBITDA, Capex, Working Capital, Steuern, Schuldentilgung und Zinszahlung). Sie könnten Working Capital und Capex separat in einer Mini-Bilanz für weitere Details. Leave Debt Tilgungen und Zinsen Paid leer für jetzt und Link von Debt Schedule später. - Debt Schedule: Hier müssen Sie detailliert die Schulden Rückzahlungen und Zinsen bezahlt. Sie können diese dann mit dem Cash Flow und PampL verknüpfen. - IRR Berechnung. Die Cashflows sollten aus Ihrer Kapitalflussrechnung stammen und Sie müssen nur die IRR-Berechnung hier einfügen. Sie sollten auch einige Sensitivity-Tabellen für verschiedene Exit-Jahre und verschiedene Eintritts-Exit-Multiples einfügen. LBO Model Test Beispiel (2 Stunden) Für die Praxis, versuchen, diesen Fall zu lösen: LBO Modell Annahmen 1. Eine Private Equity Firma will ein deutsches Geschäft für Euro280m alle Beratungsgebühren in Höhe von 2 des Transaktionswertes erwerben. Angenommen ein Transaktionsdatum vom 30. Juni 2012 und kein Bargeld. - Fremdkapital von 3.0x EBITDA zum Zeitpunkt der Transaktion wurde von einer regionalen Bank erhoben. - Der Verkäufer hat ferner vereinbart, zusätzliche Euro35 Mio. in Form eines Lieferantendarlehens zur Verfügung zu stellen. - Die Private-Equity-Gesellschaft wird den Saldo in Form einer Aktionärsbeteiligung anlegen. 3. Der Senior Bank Debt zahlt 7 pro Jahr (bar pay), mit diesem Rückzahlungsplan an Ort und Stelle: 5 zurückgezahlt im ersten Jahr, 15 im zweiten Jahr, 20 im dritten Jahr, 30 im vierten Jahr und 30 im fünften Jahr. 4. Das Vendor Loan zahlt 8 (nicht zahlungswirksam), die jährlich anfällt. Dieser Verkäufer Darlehen ist der Bankschuld untergeordnet. 5. Das Private-Equity-Gesellschafterdarlehen zahlt einen jährlich 15-monatigen Barausgleich. Dieses Darlehen ist der obersten Bankschuld und dem Verkäufer Darlehen untergeordnet. 6. Das Unternehmen muss zu jedem Zeitpunkt ein Mindestbetrag in Höhe von Euro1 Mio. betragen. Gehen Sie für alle Beträge über Euro1 Mio. voll ein. 7. Das Private-Equity-Unternehmen will die Kontrolle über das Unternehmen beibehalten und zum Zeitpunkt des Erwerbs werden 85 Beteiligungen an der Gesellschaft haben, während das Management 15 behalten wird. 8. Der Umsatz zum Schluss beläuft sich auf Euro100 Mio. Dies wird um 5 im Jahr wachsen Ein, und 7 pa Danach werden die EBITDA-Margen von 35 auf 35 erhöht und bis 2017 um zwei Prozentpunkte erhöht. 10. Es wird angenommen, dass Capex in diesem Zeitraum 15 Mio. Euro jährlich (entsprechend der Abschreibung) beträgt. 11. Das Unternehmen hat 10 Tage (von Verkäufen) Finanzierungslücke im Working Capital. 12. Steuer wird auf 30. 39A aufgeladen. Was ist das Private Equity-Unternehmen IRR und Cash-Cash-Renditen bei 7.0x, 8.0x und 9.0x EBITDA-Exit-Multiples in den Jahren vier und fünf 39B. Was sind die Renditen, wenn Sie höhere Schulden von 2,5x und 3,5x EBITDA übernehmen? Was sind die Fragen, die wir bei der Entscheidung über die notwendige Höhe der Bankschuld 39C berücksichtigen müssen. Was ist Ihre empfohlene Höhe der Bankschuld 39D. Welche EV-Ausfahrt ist realistisch, wenn die Daten zur Verfügung gestellt werden, und welche Rückkehr würden Sie erwarten 39E. Was für eine Rückkehr sollten Sie mit dieser Art von Geschäft 39F suchen. Was ist der Vorteil eines Lieferanten Darlehen 39G. Was wäre eine vernünftige Strategie, die Sie in Bezug auf die Verkäufer Darlehen in zwei oder drei Jahren annehmen würde H. Wie viel der Ausstiege geht an die Aktionäre gehen und wie viel wird an das Management gehen Für eine vollständig ausgearbeitete Antwort, wenden Sie sich bitte an die LBO Modell. Ideale Hintergründe für Private Equity Es gibt keine einheitliche Art und Weise der Eingabe der Private Equity-Industrie, aber dieser Artikel zielt auf die typischen Merkmale, die Private-Equity-Unternehmen suchen in einem Kandidaten zu erhellen. Welches Alter oder Niveau der Erfahrung, die Private-Equity-Unternehmen wollen - Die große Mehrheit der Menschen Beitritt zu Private-Equity-Unternehmen tun dies nach zwei vor fünf Jahren rsquo Berufserfahrung in einem relevanten Bereich wie Investmentbanking, Strategieberatung, Unternehmensentwicklung oder Restrukturierung. - Es ist sehr ungewöhnlich für Menschen, eine private Beteiligungsgesellschaft direkt nach dem Studium an der Universität mit einem Bachelor-Abschluss. Der Hauptgrund ist, dass die meisten Private-Equity-Unternehmen sind klein und haben nicht die Fähigkeit, Menschen in der Firma zu schulen. Bemerkenswerte Ausnahmen sind die sehr großen Private-Equity-Firmen wie Blackstone, die irgendwann von gerade aus Undergraduate-Abschlüsse mieten - aber beachten Sie, dass die Studenten in Betracht gezogen haben in der Regel durch mehrere Praktika im Bankwesen, Strategieberatung, Restrukturierung oder an anderen Private-Equity-Firmen gearbeitet. - Ein gemeinsamer Weg, um Private Equity geben ist direkt nach einem MBA (häufiger in den USA). Ebenso bedeutet dies zwei vor fünf Jahren Erfahrung in relevanten Bereichen. - Alter ist immer ein sensibles Thema, aber die meisten Private-Equity-Unternehmen mögen Leute unter 30 für eine Einstiegsposition mieten. Was sind die typischen Bildungshintergründe - Private Equity ist notorisch wählerisch über pädagogische Hintergründe, sind in der Regel Ziel Absolventen von Top-Universitäten. In Europa gibt es eine starke Vertretung von Schulen wie Oxford Cambridge im Vereinigten Königreich, HEC Essec in Frankreich, etc. Die Gründe dafür sind, dass sie eine große Auswahl an Bewerbern haben, so dass die Schule ist eine einfache erste Screening-Boden, und auch, weil die Networking Aspekt der Private Equity ist sehr wichtig (wer Sie wissen, Fragen). Beachten Sie, dass der Name einer guten Schule nicht ausreicht und oft nur eine Voraussetzung ist. Wenn Sie nicht aus einer dieser Top-Schulen, aber es ist immer noch möglich zu brechen, wenn Sie über hervorragende Berufserfahrung, Fähigkeiten oder Leistungen haben. - Für MBA-Absolventen, Private Equity ist auch sehr wählerisch, sogar mehr als für Undergraduate-Abschlüsse. Die sehr große Mehrheit der MBAs in Private Equity in Europa kommen aus drei Schulen: Harvard, Wharton und Insead (auch Stanford in den USA). - Während Sie don39t müssen eine Finanzen-Dur, sollte Ihr Grad starke analytische Fähigkeit zu demonstrieren. Wissenschaft und Finanzen neigen dazu, beliebt zu sein. Was sind die typischen beruflichen Hintergründe Auf einer guten Ausbildung (idealerweise mit Top-Graden und vielen außerschulischen Aktivitäten), Private Equity Firmen gerne sehen renommierten Firmennamen und beeindruckende Transaktionen im Hintergrund. Die häufigsten Hintergründe sind diese: - Investmentbanker: in der Regel vom zweiten Jahr Analytiker bis zum ersten Jahr Mitarbeiter Ebenen. Warum Aufgrund der hervorragenden Modellierung Ausbildung, Transaktions-Management-Fähigkeiten, die Fähigkeit, extrem hart arbeiten, und manchmal Sektor Wissen. Die Faustregel ist, dass je größer die Private Equity-Firma ist, desto anspruchsvoller werden sie in Bezug auf die Investment Bank quotprestigequot sein. Die große Mehrheit der Ex-Banker in Private Equity stammt von Goldman Sachs, Morgan Stanley, Ex-Lehman Brothers, Ex-Merrill Lynch, Rothschild und Lazard. Einige Private-Equity-Unternehmen wird für Ihre Analysten oder Associate-Ranking die mehr Angebote Sie getan haben, desto besser. Sie können noch brechen in von kleineren Banken, aber Sie müssen einige wirklich beeindruckende Transaktionen oder andere spezifische Fähigkeiten. - Junior Strategy Berater. Warum Für die strategische Denkfähigkeit, die Fähigkeit, sehr hart arbeiten, und Sektor Wissen. Berater sind ein bisschen weniger verbreitet als Banker in Private Equity, weil sie in der Regel fehlt ein wenig in Modellierung Fähigkeiten, aber Menschen arbeiten bei Firmen wie McKinsey, Bain amp Co und BCG haben einen guten Schuss auf Private Equity Arbeitsplätze, vor allem, wenn sie gearbeitet haben Auf Private Equity Due Diligence Aufträge. Einige PE-Firmen (wie Bain Capital) konzentrieren sich auf die Einstellung von Strategieberatern im Gegensatz zu Bankern. - quotOthersquot: Abhängig von der Firma können Private-Equity-Unternehmen qualifizierte Buchhalter von den Big 4 (wenn sie an Private-Equity-Deals mit einem sehr britischen Hintergrund gearbeitet haben), Talent aus Restrukturierung und manchmal Menschen mit ein bisschen unkonventioneller Hintergründe ( Dh Eigenkapitalforschung, ECM, Unternehmensstrategie). Welche anderen Eigenschaften sind Private-Equity-Unternehmen auf der Suche nach einer guten Ausbildung und einer großen Arbeitserfahrung in einem Top-Unternehmen, Private-Equity-Unternehmen würden wirklich gerne diese Merkmale zu sehen: - Sprachen: Je mehr Sie sprechen fließend, desto besser. Sie können Ihre Chancen deutlich erhöhen, wenn Sie zwei oder drei europäische Sprachen fließend sprechen, und in den meisten Fällen Englisch eine andere europäische Sprache erforderlich ist. LsquoHotrsquo Sprachen gehören nordischen und osteuropäischen Sprachen. Deutsch, Französisch, Italienisch, Spanisch und Niederländisch sind auch sehr nützlich. - Extracurriculars: Damit Sie sich vom Rest abheben, sind Extracurriculare (wie Leichtathletik oder Kunst) sehr nützlich, besonders wenn sie beeindruckend sind. Alles, was zeigt, dass Sie eine gut abgerundete Person ist oft erforderlich - Unternehmerische Antrieb und Führung: Alles, was zeigt, dass Sie eine getriebene Person, die gerne Initiative zeigen können, wie die Position eines Club-Präsidenten, die Organisation von Wohltätigkeitsorganisationen, etc Private Equity Psychometric Tests Nach der Beantragung eines Jobs bei einer Private Equity-Firma, manchmal werden Sie mehrere online psychometrische Tests gesendet werden. Diese Tests helfen Unternehmen, Kandidaten auszusortieren, bevor die eigentliche Face-to-Face-Interview-Prozess und werden immer häufiger mit großen Private-Equity-Unternehmen. Im Durchschnitt sind mehr als die Hälfte der potenziellen Kandidaten nicht in dieser Phase, in der Regel als Folge der Mangel an Vorbereitung. Um eine gute Punktzahl auf diesen psychometrischen Tests zu erhalten, ist es wichtig, sich daran zu erinnern, dass Vorbereitung der Schlüssel ist. Die gute Nachricht ist, dass Unternehmen immer lassen Sie wissen, dass es einen Test geben wird, und es wird fast immer ein SHL-Test sein. SHL ist eines der populärsten und bekanntesten Assessment-Unternehmen der Welt. Major Private Equity Unternehmen verlassen sich auf Unternehmen wie SHL psychometrische Tests für Kandidaten bieten. Sie können Übung SHL aptitude Tests wie die, die für die tatsächliche Job-Assessments hier. Die Tests Erklären 1. Ein mündlicher Reasoning Test: Mündliche Reasoning Tests sind so konzipiert, um Ihre Fähigkeit zu verstehen, schriftliche Informationen zu verstehen und zu bewerten Argumente in Bezug auf diese Informationen. Yoursquoll wird mit einem Absatz von Text oder Auszug präsentiert und müssen logische und Verständnis Fähigkeiten, um spezifische Fragen zu beantworten. Hier können Sie die Mündlichkeitsprüfung durchführen. 2. Ein Numerical Reasoning Test: Numerische Tests wurden entwickelt, um Ihr Verständnis der statistischen und numerischen Daten sowie Ihre Fähigkeit, logische Deduktionen zu beurteilen. Yoursquoll wird eine Tabelle oder ein Diagramm mit bestimmten numerischen Informationen präsentiert und müssen Fragen zu den Daten beantworten. Die Fragen basieren oft auf mathematischen Berechnungen mit Prozentsätzen und Verhältnissen. Sie erhalten Numerical Reasoning Practice Tests hier. 3. Ein induktiver Reasoning-Test: Inductive Reasoning Tests wurden entwickelt, um konzeptionelle und analytische Gedanken basierend auf Muster und Konsistenz-Identifizierung zu testen. Yoursquoll wird mit einer Gruppe von Bildern und Formen präsentiert, die einem bestimmten chronologischen Muster folgen und gefragt werden, welches Bild das nächste im Muster ist. 4. Persönlichkeit Fragebogen (manchmal) Der Zweck der Persönlichkeit Fragebögen ist es, bestimmte Charakterzüge der Antragsteller zu einem ldquopersonality profilerdquo zu bauen. Unternehmen vergleichen dieses Profil mit den Anforderungen des Unternehmens und den Anforderungen der jeweiligen Position. Persönlichkeit Fragebögen werden oft behaupten, dass es keine richtigen und falschen Antworten, aber das ist natürlich nicht wahr, da es spezifische Antworten, die auf positive oder negative Merkmale, die einen großen Einfluss darauf haben, ob oder nicht yoursquoll den Job. Wie man mehr herausfindet und etwas Praxis erhält Die einzige Weise zu üben ist, Scheinproben online zu tun. Sie können einige kostenlose Proben finden oder kaufen mehr Praxis, wenn nötig, über den folgenden Link: Walk me durch ein LBO-Modell Eine häufige Frage, die Sie erhalten, während Private-Equity-Interviews können Sie mir bitte durch ein LBO fühlen sich frei, Ihre eigenen Annahmen zu machen . Während dies klingt ein bisschen erschreckend auf den ersten, ist der Trick hier, um die Dinge einfach zu halten. Die Theorie hinter einem LBO ist eigentlich ziemlich einfach. In welcher Ebene des Details sollten Sie gehen Was der Interviewer versucht, zu testen ist nur, dass Sie ein gutes Verständnis der Mechanik eines LBO haben, so gibt es keine Notwendigkeit für Sie, gehen in eine Menge Details. Details werden während der LBO-Modellierung Test kommen Hier ist, was Sie in der Lage sein zu verstehen und die Schritte, die Sie nehmen sollten. Wenn möglich, legen Sie einige Annahmen auf ein Stück Papier. Schritt 1: Legen Sie die Quellen und Verwendungen Annahmen Annahmen und einige Beispiel Unternehmen. Nehmen wir an, wir haben ein Privatkundengeschäft. Mein erster Schritt wäre, legen Sie einige Annahmen in Bezug auf Quelle und Verwendungen. - Ich muss wissen, wie viel ich für das Unternehmen bezahlen werde. Dies kann als Vielfaches des EBITDA ausgedrückt werden. Können wir davon ausgehen, 8-mal des aktuellen EBITDA, die ich glaube, ist ein vernünftiges Vielfaches. Im aktuellen Umsatz sind 500 und EBITDA-Marge ist 20, dann ist EBITDA 100, das bedeutet, dass 8100 800 ist, was ich zahlen müssen. - Ich muss wissen, wie viel von diesem Kaufpreis wird im Eigenkapital und wie viel durch Schulden bezahlt werden. Nehmen wir an, dass ich 50 Schulden und 50 Eigenkapital verwenden werde. Das bedeutet, dass ich 400 von Eigenkapital und 400 Schulden. - Auch gehen wir jetzt davon aus, dass wir dieses Unternehmen in 5 Jahren verkaufen, bei dem gleichen 8-fachen EBITDA Multiple. Schritt 2. Machen Sie einige grundlegende Cash-Flow-Annahmen Jetzt muss ich wissen, über die finanzielle Prognose zu sehen, was der Cashflow aussieht und sehen, wie viel Schulden kann ich über den Zeitraum zurückzahlen. Mein Cashflow vor Schuldenrückzahlung errechnet sich wie folgt: EBITDA - Capex - Veränderungen des Betriebskapitals - Zinsen für die Schulden - Steuern. Hier können Sie gefragt, in Detail, wie Sie kommen mit jeder Nummer gehen, oder Sie können einige Schritte springen - Interviewer wird Sie führen. Ich gehe davon aus, dass das EBITDA in fünf Jahren von 100 auf 150 wachsen kann. Dann lassen Sie uns sagen, dass basierend auf diesen Prognosen, ich bin in der Lage, 20 Schulden pro Jahr zurückzahlen können Sie aufgefordert werden, die Menge zurückzuzahlen, die Sie zurückzahlen können basierend auf den Details, die Sie oben berechnet, das ist 100 in den nächsten fünf Jahren. Schritt 3. Berechnen Sie Ihre IRR - Ich habe 400 Eigenkapital ausgegeben und 400 Schulden genommen - Nach 5 Jahren ist EBITDA 150, und vorausgesetzt, ich kann an einem 8-fachen Vielfachen verkaufen, werde ich 150 8 1.200 zu bekommen. Von diesem 1.200, muss ich die 400 Schulden zurückzahlen, aber ich habe bereits 100 in den letzten 5 Jahren zurückgezahlt, deshalb habe ich nur noch 300 zurückzuzahlen. Das lässt mich mit 1200 - 300 900 des Eigenkapitals. - Meine Gesamtertrag ist daher 900 400 2,25x Rendite über 5 Jahre, die etwa ein 18 IRR ist in der Lage, IRRs zu schätzen, müssen Sie sich merken IRR Umrechnungstabellen Für fortgeschrittenere Private-Equity-LBO-Modellierung Praxis können Sie auch beziehen sich auf unsere Tipps und LBO Praxisbeispiel Die Zahl der Führungskräfte mit MBAs steigt Mit Blick auf die jüngeren Führungskräfte in der Firma gibt es auch eindeutige Beweise dafür, dass der MBA wird immer beliebter bei der neuen Generation von Buyout Führungskräfte. Unter MBAs bieten fünf Schulen die überwiegende Mehrheit der professionellen PE-Absolventen Fünf Schulen bieten mehr als 80 von allen MBA-Absolventen, die in Private Equity arbeiten Wharton, Harvard und Stanford werden von den USA und in Europa, Insead und LBS zur Verfügung gestellt. PE Firmen neigen dazu, ihre eigene Art zu mieten, so dass die PE-MBA-Community ist ein sehr geschlossener Kreis. Wenn Sie an unserem MBA Essay Review Service von Alumni von Top Business Schools interessiert sind, wenden Sie sich bitte an thomasaskivy. net. Headhunter für Private Equity Während PE-Firmen neigen dazu, Menschen über ihr Netzwerk zuerst (zB Alumni, Banker, die sie mit, Freunden und Ex-Kollegen) zu rekrutieren, bevor sie zu Headhunting Unternehmen, hier ist eine Liste der bekannten Headhunter in London, die eine haben Spezialisierte Private-Equity-Praxis: Spezialist Recruitment Consultancy Management von permanenten Mid-to-Senior-Level-Termine innerhalb Corporate Finance. Die Kunden reichen von Top-Banken und Boutiquen bis hin zu Private-Equity-Häusern in London. Kontakt Name: Jade Sweeney Kontakt Telefon: 44 (0) 207 936 1125 Dedizierte Stand-alone-Private-Equity-Team mit einem Track Record und Erfahrung der Branche seit über einem Jahrzehnt. Principal, Senior Associate, Associate und Executive Ebene Mandate, die eine reine Suche Methodik für jedes Mandat. Mandate sind Großbritannien, CEEMEA und MENA konzentriert. Fast die Hälfte der Platzierungen im Jahr 2012 waren außerhalb von Großbritannien. Quelle Kandidaten aus Investment Banking (Mampa, Leveraged Finance und Financial Sponsors), seitliche Private-Equity-Profis und Management Consultants. Kontaktname: Adam Cairns Ansprechpartner: 44 (0) 203 762 2023 Blackwoods ist ein in London ansässiges Suchunternehmen, das sich für eine Vielzahl von Finanz - und Nichtfinanzierungen engagiert, aber auch eine gute Anerkennung in der London Private Equity Recruiting Raum. EH Partners ist ein Londoner Boutique Executive Search Unternehmen mit Schwerpunkt auf den alternativen Assets Space und Investment Banking. Kontakt Name: Simon Hegarty Kontakt Telefon: 44 (0) 203 432 2552 Kea Consultants ist ein Executive Search-Unternehmen, das spezialisiert auf bewegte junge Berufstätige von Top-Tier-Investmentbanken und Beratungsunternehmen in die Buy-Side. Sie arbeiten auf einer exklusiven Basis mit Firmen wie Blackstone, TPG, Advent amp Och Ziff und haben starke Beziehungen mit einer Reihe von anderen Fonds in Größe Kontakt Telefon: 44 (0) 203 397 0840 Pure Finance-Unternehmen mit einer guten Präsenz In Private Equity und Hedgefonds. Kontaktperson: Chris White Kontakt Telefon: 44 (0) 207 887 7500 Private Equity Recruitment (PER) konzentriert sich ausschließlich auf investitionsbezogene Funktionen wie Private Equity, Venture Capital, Mezzanine Capital, Fund of Funds und Secondaries. Sie decken hauptsächlich Europa und den Nahen Osten ab. Spezialist für Finanzdienstleistungen, der Kunden in den verschiedensten Produktbereichen im Investment Banking und im Finanzdienstleistungssektor globale Kundenberatung bietet. Kontakt Name: William McCaw Kontakt Telefon: 44 (0) 207 090 7575 Große Recruitment-Firma mit Sitz in Großbritannien. Sie umfassen vor allem Europa aus London, sondern haben auch einige Präsenz in Asien-Pazifik durch ihre Hong Kong Büro. Sie rekrutieren für Banking und Private Equity. Walker Hamill is widely recognised as one of Europersquos leading recruiters in private equity, venture capital, real estate, secondaries, fund of funds, mezzanine and hedge funds. It recruits for investment positions from Associate to Partner level and infrastructure roles including finance amp accounting, fund raising, investor relations, compliance and portfolio management. Kontakt. James Stephens jstephenswalkerhamill Would you like to add your firm, contact name or other details to this list Contact us here . PE Interview: How to Differentiate Yourself It is not unusual for Private Equity firms to receive thousands of CVs per year, and even more for the major funds. Similarly, investment professionals tend to get bombarded by emails and calls requesting information and help to secure an interview. So, how can you differentiate yourself amongst all those CVs 1. A mere Oxbridge Ivy League degree work experience at top firms doesn39t cut it In Europe, Private Equity firms may only hire 100 or so new associates every year in total. The top firms may only hire for one dozen positions per year, maybe less. To illustrate what you are up against, the Private Equity clubs from Harvard and Wharton have more than 800 members each. If you add to that number the analyst and junior associates classes of Goldman Sachs, Morgan Stanley, McKinsey, Bain amp Co, etc. you will be very quickly in the several thousands of well-educated, well-trained candidates who will compete against you for a handful of jobs. 2. Find a quotmarketing anglequot that makes you unique Your marketing angle will come from different dimensions: - Geography: Obviously, language is a big differentiator in Europe. But only talk about the languages you speak fluently or the regions you actually worked lived in. Then reach out to people from those regions when sending your CV, and mention this clearly to the headhunters. Note that if you speak a language but never worked in the country, that may be a handicap, so you need to mention that you spent a number of years in said country. - Sector expertise: Very useful for sector-focused funds or funds organised in verticals. - Specific deal exposure: Mentioning transactions where you either worked with the private equity fund or where it was an under-bidder is a good angle to start a discussion with a PE fund, as they will be able to test your understanding and abilities very quickly. This may backfire though - make sure you know the deal inside and out. - Transaction types: If you work for a boutiques or mid market of focused banks or consulting firms, this will be well received by small cap and mid-market funds. - Educational background: Use your alumni base as much as you can, but don39t limit yourself to your own school. For example, a top MBA is likely to be well received by somebody from another top school. - Company alumni: Similarly, reach out to people who worked at the same firm than you. Again, you don39t need to limit yourself to the same firms. For instance if you worked at McKinsey and you are reaching out to somebody who worked at a rival firm, it is still more likely to work than reaching out to an ex-banker. - Other connections: Ex-military, specific background (i. e. if you studied medecine, law, etc.), same associations, etc. If you build your profile along those verticals, you will now see that you can differentiate yourself effectively and make yourself much more memorable to the firms. 3. Tailor your CV and angle to different firms I would advise against sending generic CVs to every firm or headhunter, hoping that something will fit your profile. You need to target funds, and then tailor your message accordingly. For example, if you are in a specific sector team, try to diversify your CV if you apply to a generalist fund (i. e. less detail about the sector deals, highlight some other experiences, etc). If you apply to an all-British fund, there is no need to mention your international experience or language abilities at length, etc. 4. Personality is the ultimate differentiator All the above advice will help you get to the interview stage. However, in the end, the quotfitquot is what really differentiates one candidate from another, all else being equal (i. e. same performance in the technical tests, modelling tests, etc, which is under your control if you practise). At all times during the process, do not forget to maintain a well-mannered and humble attitude, which, surprisingly, is an area where many candidates fall short. If you have the right profile and manage to differentiate yourself, build a story, maintain the right attitude and prepare, getting a job in private equity will just be a matter of time How to Cold Email PE Professionals The best strategy to find a job in Private Equity is often to reach to those firms directly, especially if you feel that there would be a good fit between your background and the firm. In addition, headhunters are very selective when sharing job opportunities in PE so you might miss out on a potential interview. Sending quotcold emailsquot is widely accepted in the PE industry, and if the email is properly crafted, you should be getting an answer in most cases. So find below a few strategy tips for cold emails to Private Equity professionals. Make a list of your priority target firms that make most sense gt Create a big spreadsheet with the list of all PE firms that might be relevant and that come to your mind, or that you39ve come across. gt Narrow down to a set of priority firms (7 to 10 firms maximum) that you think would be the best fit and most relevant to your background. Sending proper cold emails is actually quite time-consuming, which is why we recommend to focus as much as possible initially. Identify the best contact person(s) gt Seniority: We would recommend that you avoid reaching out to a very junior person, or one at your same level, for a number of reasons (they are the busiest, there might be a fear of competitors, a lack of incentive to help), or to those too senior (most won39t care or have time). The ideal people are at the quotprincipalquot, quotdirectorquot or quotvice-presidentquot levels, because they are senior enough to have a say in the recruiting process but still junior enough to take time to answer candidate emails. gt Common background: check out the websites of the firms and review the biographies of the people working there to get an idea of their backgrounds. From the background descriptions, try to find the persons who are most similar to you: people who worked at the same firms, same country of origin, same school, same kind of work experience or educational background, etc. gt LinkedIn: LinkedIn is very powerful tool for identifying potential contacts, and researching people39s backgrounds and potentially common friends. Always do a search on LinkedIn for your target firm as you might also find people who are not listed on the website. gt HR: Some PE firms have HR departments. However, I would actually advise against sending your CV directly to HR if you find some other suitable contact in the firm, as HR39s candidate criteria are usually narrower compared to investment professionals, which means less of a chance to get an interview. Structuring the email Never write a cold email that is more than one or two paragraphs long. Most people won39t take the time to read longer emails, and it also shows that you are not able to write concisely. Get straight to the point and attach a CV. We recommend the following structure: gt First sentence: Your background (basic key relevant points) optionally how you got their details, if it was an introduction from a friend. Example: quotHello Mark, I am a second-year analyst working at Morgan Stanley in the Consumer team here in London, and I39m from Germany (I also speak Spanish).quot gt Second sentence: Purpose of the email asking to discuss CV Example: quotI39m very interested in Private Equity and your firm in particular, and I was wondering if your firm had any expansion plans in the short or medium term I would be happy to have a quick chat at your convenience. I39m attaching my CV for reference. Best regards, quot. Other reasons: quotI read that your firm just raised a fund just opened an office in Munichquot, etc. Usually the person will open the CV and take a five-second look to see if your profile would fit. If it doesn39t fit, they might say that they are not hiring, or simply say that you donrsquot have the required profile. You might also get a standard quotrejectquot email. If it fits, they might reply that they are not hiring if they are indeed not hiring, and keep your CV on file. They might also accept a quick phone chat to do some informal pre-screening process, or they might even ask you to come in for an interview What if I get ignored There might be a good number of reasons why you get ignored, not always negative - people travel, miss emails, forget to reply, etc. If you donrsquot get a reply within a week, itrsquos perfectly find to send a reminder email: quotHi Mark, I wanted to follow up on my previous email, happy to have a chat whenever convenient. Thanksquot. One reminder email is enough and we would not advise to go beyond that. If you still don39t hear back, try another person or two in the firm You have nothing to lose by trying, but we would advise against trying more than three people in the firm. Track your progress, persevere, and be consistent Do maintain your spreadsheet and make a note of each rejection, each email sent, and person contacted so that you always know the status of your attempts. Private Equity recruiting is a long - term game: gt If they said no - don39t waste your time and move on to other firms in your list gt If they said that they are not hiring now, try again in six monthsrsquo time, or whenever they do a fundraising (fundraising usually means expanding the team) gt If you need to contact the firm again, contact the same person gt Once you have been through a few firms within your priority list, start investigating firms outside your top priority gt As you read the press, work on deals, talk to friends, etc. Donrsquot forget to add to your list any interesting PE firm name that you come across. Private Equity Case Studies If you get invited to Private Equity interviews, you will almost always encounter Private Equity case studies. PE case studies can be notoriously difficult, and require a great deal of preparation. While every firm will have different types of case studies, this article aims to give you an overview of what you should be expecting. What is a case study Case studies are investment problems that you will be asked to analyse. Based upon your analysis you need to propose a final recommendation: should they invest in this company or sector At what price Why do private equity firms use case studies Case studies are great because they enable the interviewer to assess several aspects of a candidate: The ability to absorb a large quantity of information and focus on what is relevant The ability to structure your thoughts and analysis General business acumen Pure quotproblem-solvingquot skills (i. e. intelligence) Analytical skills (calculations are always involved) Presentation and communication skills (you will be asked to present a solution) Excel modelling PowerPoint Time management skills At what stage of the interview process do I get case studies Usually after the first round of interviews, but sometimes in the very first round. How are they given How much time do I have to work on case studies Case studies can take on several forms, but these are the most common: 1. Take-home case studies: The firm will send you a case via email and give you a few days to complete it, then send it back in a Word document with your Excel model. 2. Mini-cases: at the firm, in person, as a live discussion. In this case, there is no Excel model (or you may be asked to do a quotback of the envelopequot model on paper) and the discussion generally lasts between 45 minutes to an hour. 3. Full-blown cases: At the firm. You are seated in a room with a computer, given the case study, and allowed between one hour to four hours to complete your analysis and Excel model. Can you give me an example of a Private Equity case study The ingredients of a case study are always the same, irrespective of the format: 1. Description of a company and sector. This can be a few summary lines or slides, or in full-blown case studies, they could either give you a company annual report or an Information Memorandum (quotIMquot) 2. Financials. These can be a few key items (i. e. revenue, EBITDA, Capex) or you can get a full annual report or IM. Based on this information, you should be able to analyse the company, build an LBO model, and answer the following questions: Is the company an attractive investment or not How much should we pay for it For case study practice please refer to our private equity case study here . List of London Private Equity Firms Below is a list of Private Equity funds that have offices in London and have a significant European presence. We broke down the list in quotgeneralistquot funds that cover all sectors across difference geographies, quotsector specialistsquot, quotspecific region-focusedquot funds and finally Private Equity funds within investment banks. Note that the list below covers only the major funds and doesn39t include venture capital funds and other Private Equity funds that have less than pound500 million of assets under management. Generalist Funds with London-based operations Preparing your CV for Private Equity If your ambition is to work for a private equity fund, not only must your resume go past the headhunters, which are notoriously picky about who they send for PE interviews, but it needs to get you a foot in the door of PE funds. Tailoiring your CV is a critical part of the application process, because it will be used in the numerous steps that will follow if you are invited for a first round interview. In the UK, Private Equity funds will typically look for the following qualities in your CV. gtgt Business Judgement gtgt Strategic perspective and understanding gtgt Interest for investing gtgt Raw intelligence gtgt Analytical skills gtgt Knowledge of finance, accounting and modelling gtgt Strong communication and social skills gtgt Existence of network or potential network, and pedigree gtgt Leadership and maturity Therefore, to be invited for a first round interview, you need to bring out each of those qualities on your resume. Of course, funds differ in size, investment strategy and culture, so some funds will look for some specific qualities in more details compared to others. Guidelines by fund type - The large private equity funds (with 1bn or more in asset under management) such as Goldman Sachs PIA, Morgan Stanley Private Equity, Blackstone, Carlyle, etc. will tend to focus on your LBO modelling skills. This is particularly true for private equity funds with teams composed of ex-bankers so check their websites and youll know what to expect. - Consulting-type funds that staffed mainly from ex-strategy consultants from McKinsey, BainampCo or BCG such as Bain Capital will look at your strategic thinking abilities and your business sense. Therefore, showing a good understanding of the rationale of a transaction is extremely important to them. Expect consulting-style case studies at the interview. - Small and mid-market funds will be more focused on your personality and cultural fit with the firm. This is because for smaller firms, relationships are key and you will be working very close with management teams of potential target and portfolio companies. What to write in my Education section - List any outstanding scores and significant scholarships (mention the amount) - Mention any meaningful Club affiliation that are relevant to investments such as Investment Club memberships, Private Equity or Asset Management Club, etc. Be careful however, trading and picking stock is not what private equity companies do, they are looking at the long term, so do not mention that you are a member of a Sales and Trading Club. - Any leadership positions youve had is a strong positive as it shows leadership, maturity, good social skills and ambition. - Finally, do not mention anything that is irrelevant (i. e. member of the Cooking Club) or indicates a lack of focus (ie. Marketing Club, Consulting Club) Its generally a negative not to be from Oxbridge Ivy League, but the way to compensate for this is to have very high grades, a very good work experience at top firm (i. e. bulge bracket, top consulting firm), or a unique angle such as rare languages (Nordic, Turkish, Eastern European, etc.), deep sector knowledge or special achievements. What to write in my Professional Experience section Applicants with banking experience need to bring out deal experience on the CV. The best deal experience from PE funds perspective is having advised a fund on a successful acquisition, and any experience in financing and leverage-finance work. Beware they will grill you on those transactions Also highlight sell side, buy side, IPOs, etc that you have done, but give less details than for your Private Equity-related deals. Applicants with management consulting experience need to bring out operational expertise. You will score a lot of points if you worked on due dilligence assignments with PE firms. Also highlight any financial modeling you may have done, as the main drawback of consultants is their lack of experience at building LBO models. For all applicants, depending on the fund you are targeting, highlightings sector knowledge may be a good or bad things. Some funds prefer generalists, while some funds will want to hire you for a specific sector team (i. e. FIG, TMT). Just make your due diligence on the fund you want to apply to, and tailor your CV accordingly. PE funds clearly favour top-tier firms, and especially US banks and McKinsey, BCG and BainampCo, and they like to hire people who they worked with on transactions. Applying from a second-tier bank will definitely be a challenge (and a from a third-tier and small firm an major struggle), but it can be overcome if you have solid deal experience or can excel in other areas, especially in terms of education, languages, and fit with the firms culture. What to write in the other interests section Many applications to PE funds have very similar CVs: prestigious firm, very good schools, and couple of interesting transactions. In the end, you need to have a special flavour that will make a difference. Here is a checklist of good things to bring out: - Activities pursue at a high level: for example, sports are always a good things to bring out if youve played at a professional and semi-pro level. It is not uncommon to see PE professionals who climbed the Everest, won a medal at the Olympics games, or regularly run marathons. - If you have any burning passions, mention them, but only if you are a genuine expert and received tangible and impressive recognition for it (i. e. prizes, mentions in the press) - Language skills and citizenship are always valuable for big pan-European or global funds. For pure UK funds, be careful as this may well be a handicap, unless they have explicitly require somebody with a specific language. - Community service is often a plus, but not required (more of a tradition in the US). Other General Tips - Get your CV reviews by pople that have PE experience, if you can. Only work with a few people you trust as getting too many reviews can be confusing. - Say the truth. PE interviews are typically very detailed and in-depth, so there is no room to make up anything. Also remember that the PE community is a very small world, and stretching the facts will easily spread to the other funds and other potential employers. - Prioritise your experiences. Take out anything that is not relevant out of your CV, and focus on the most relevant experiences, and go into details. Omit anything that was too short or that you would not be comfortable talking about. - Use action phrases and not passive ones. I was part of a team is not good - tell them what YOU were doing. - Always make your due diligence on funds by checking the press, recent deals, checking bios and googling the people you are going to meet. - You can always anticipate at least 50 of the questions that will be asked about yourself and your CV. PE equity interviews are hard to get, so spend meaningful time preparing to make the best of it Private Equity Interview Process Explained Private Equity recruiting tends to be much more informal than banking or consulting, however there are some very common steps that most Private Equity firms take for interviews. A typical process in the UK (or Europe in general) is described below. For more detail on each step, please check our detailed posts on technical questions, case studies, and psychometric tests. The early rounds (first one or two interviews): psychometric tests, fit questions, mini-case studies and random technical questions. These are numerical and verbal tests (most often SHL tests, examples here) designed to complete a first cut in the applicant pool. Anything between 30 and 50 of the applicants can be rejected at this stage, sometimes more, depending on the quotpassquot threshold. Sometimes, you will also be given a personality test. Make sure to ask if you will need to take these tests, as you will need some preparation. - Fit and CV questions These questions involve having to first introduce your background, walking the interviewer through your CV, and acing questions like, quotWhy private Equityquot and quotWhy our firmquot Needless to say, you must have rehearsed this extremely well, as this is probably the most important question you will be asked in the interview. - Mini-case studies and investment cases Usually, private equity firms like to give small case studies to judge your business sense, gauge your understanding of the way companies operate, and to test your understanding of what drives return in an investment. This may consist of a SWOT analysis on a particular firm (very often one of their portfolio company), an investment rationale analysis, or asking your opinion on specific industries or firms. This could be a simple question, such as quotDo you think an airline would be a good investmentquot or more detailed questions with supporting data and charts that you will have to analyse. Very often, if you are a banker and have worked on a deal, they will ask you your views on the deal and whether you think it made sense. These accounting or LBO questions are nothing too difficult for a seasoned investment banking analyst, but be ready to discuss how you build an LBO, estimations of IRRs, and various types of debt instruments without hesitation. Later Rounds (if you passed the early rounds): full-blown LBO Modelling Test or Case Study test This often involves a full-blown LBO modelling exercise and investment case analysis based on an Information Memorandum or a case study provided by the private equity firm. You will be given a laptop or be in a room with a desktop for a couple of hours (one to four hours depending on the firm) to prepare a model and some slides based on the information provided. You will then need to present your results to senior members of the firm. Again, if you are an experienced analyst and if you get some LBO modelling practice this should not be too difficult. Before the interview, make sure you practice creating simple LBO models from scratch. You should be able to pull together a simple LBO model in less than one hour, starting from a blank page, by making reasonable assumptions. Final Round: the likeability test Most firms will do a dinner or drinks with the most senior partners in the firm in the final stages (with the CEO himself or the company head), so that you can get a final stamp of approval. Anything can be asked some firms may try to drill down on your perceived weaknesses and ask more fit questions, you may just have a pleasant and simple chat (but don39t be fooled, every answer will be scrutinised), or you may be asked a lot of very personal questions. At this point, everything will come down to your personality, your career goals, and how likeable you are as a person. As a rule of thumb, smaller firms tend to be less technical and the interviews largely based on fit and personality, while larger firms (Blackstone, Apax, etc.) tend to spend much more time testing your technical skills. However, most firms will require you to meet everybody or at least 90 of the people in the fund, so be prepared for a very lengthy process that may last several months - and expect at least three months from start to finish. Private Equity Career Track Getting a job in private equity is often seen as the holy grail of finance. However, once you have made your way into a private equity fund, how will your career evolve, and how do you make it to partner The traditional career progression in private equity is detailed below. Analyst or Pre-MBA Associate - These are typically pre-MBA candidates hired from the investment banks, strategy consulting firms or accounting firms. They usually have two to four yearsrsquo experience maximum. - The job involves mainly prospecting (cold calling, screening sectors for interesting companies, etc.) as well as investment analysis. This involves reading Confidential Information Memoradum (CIM) and other company data, working on financial models and writing investment memos for the investment committee. - After two years, sometimes there is a promotion to the senior associate level, but often the analyst pre-MBA associate will leave to either pursue an MBA at a top school or change career path (i. e. entrepreneurship, hedge funds, corporate development, or another PE fund). - Compensation mostly consists of base pay bonus. Post MBA Senior Associate - These are often hired right out of business school or one to two years after graduation from business school. These professionals have three to six yearsrsquo work experience in investment banking, consulting and private equity. - Senior Associates can expect to reach Managing Director Partner level within six to eight years. - The work includes taking full responsibility for deal screening and modelling during the execution of a deal. Most of their time is spent managing advisors such as investment banks, lawyers, and accountants. - Compensation mostly consists of base pay bonus, sometimes with a small share of investment profits. Vice President Principal - Position usually reached after two to three years in the private equity fund. - They are expected to be able to lead the execution of transactions, source their own investments, and create ideas within their area of expertise. - They also spend a lot of time managing the portfolio companies. - They get promoted to partner if they demonstrate a good ability to generate money for the firm. - A share of profits of the investments is an increasingly large portion of the compensation. Managing Director Partner - In charge of leading the firm39s investment focus and strategy, as well as managing relationships with investors and raising new funds. - Participate in investment decisions, sit in the investment committee, and sit on the portfolio companiesrsquo board. - Compensation is largely driven by profits of the firms. Partners are also expected to invest a significant proportion of their personal wealth in the fund. Must-Reads for Private Equity Private Equity as an Asset Class An introduction to private equity in five sections: (1) Definition and structure of the industry (2) Buyout funds (3) Venture funds (4) Development Growth funds (5) Due Diligence and other topics. The good point about this book is that it doesn39t get overly technical from the start, but takes some time explaining the business model of private equity firms in general. Nevertheless, bear in mind that this book is written from an investor perspective (the people investing in the fund) as opposed to the private equity fund managerrsquos perspective. The Predator39s Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders This book is largely about the emergence of junk bonds, which are the type of debt used to finance Leveraged Buyouts (LBOs), without which the private equity market would not really exist. The books focuses on the rise and fall of legendary investment bank Drexel Burnham Lambert, the bank that ruled the junk-bond world in the lsquo80s. Barbarians at the Gates A very long book by Bryan Burrough and John Helyar, but also a mandatory read for future leverage buyout moguls. This book relates the true story of a bidding war for RJR Nabisco (one of the largest consumer goods company in the U. S. at the time), who was ultimately acquired by KKR. We recommend this book because it is well-written and relates to a true, very important event of financial history also, it will give you a good idea of the political fights that occur during large leverage buyouts. You will get a good overall understanding of how private equity companies think and work. The New Financial Capitalists: Kohlberg Kravis Roberts and the Creation of Corporate Value This is a study of private equity pioneer and powerhouse KKR. This is a great read for many reasons it not only gives you an unbiased story of KKRrsquos rise to prominence, but it also details other aspects of private equity such as deal structuring, definitions of technical terms, and an interesting insight into entrepreneurship. Mr. China is not only a book about doing business in China. It tells the real story of a tough Wall Street banker coming to China to buy companies, eventually spending 400m buying Chinese companies in the lsquo90s, with somewhat disastrous (and sometimes hilarious) results. It is incredibly well-written, and provides a very good insight into doing private equity in China, and also about how difficult it is for private equity firms to manage and turn around the companies they buy. Not technical Some technical language For advanced experienced professionals. Overview of LBO Debt Financing When a private equity firm conducts a quotleveraged buyoutquot, or LBO, it uses a significant amount of debt. The list below is a high-level explanation of the different types of debt instruments that are commonly used in LBO transactions. When purchasing a company, the private equity fund will usually provide anything between 30 to 50 of the purchase price in equity (i. e. the fundrsquos own money), and borrow the rest. The 30 to 50 range varies depending on market conditions and the type of company that is bought, but most LBOs usually fall in that range. The type of debt used, in order of risk (from the lending bank39s perspective), includes: Senior Debt This debt ranks above all other debt and equity capital in the business, meaning it needs to be repaid before other lenders can receive any cash. The debt has very strict requirements (i. e. must comply with specific financial ratios), and is usually secured against specific assets of the company. This means that the lender can automatically acquire these assets if the company breaches its obligations. Therefore, it has the lowest interest rate of all these types of debt and, from the lenderrsquos perspective, this is the most secure form of financing. Debt repayments can be spread over a four to nine-year period or be paid in one final payment in the last year. Subordinated Debt This debt ranks behind senior debt in order of priority on any liquidation. Repayment is usually required in one payment at the end of the term (as opposed to spreading the repayments over a number of years), and the maturity can range between seven to ten years. The requirements of the subordinated debt are usually less stringent than senior debt, but since subordinated debt gives the lender less security than senior debt, lending costs are typically higher. Mezzanine Debt This is usually high-risk subordinated debt, and ranks behind senior debt and unsecured debt. Interest on mezzanine debt is much higher, but while part of the interest needs to be paid in cash, another part (called a PIK, or ldquopaid in kindrdquo) is rolled up into the principal. For example, if you borrow 100 shares of mezzanine at 10, with 5 cash and 5 PIK, you will have to pay 5 in cash in interest in the first year, and the remaining 5 will accrue to the principal. Therefore, the following year, you will need to pay 10 on the new principal of 100 5 accrued in previous year (which equals 105), and this continues until maturity when the full principal needs to be repaid (usually within 10 years). Sometimes the mezzanine debt will also include warrants or options so that the lender can participate in equity returns. What do Private Equity professionals do Private Equity is essentially about buying and selling companies. But what do private equity professionals really do on a day-to-day basis The time of private equity professionals is divided between four main categories: This task is mostly performed by the senior partners in a private equity fund, but sometimes a dedicated fundraising team will work within some of the larger funds. Essentially, every four to five years or so, the senior management will go knock at the door of international investors such as pension funds, banks, insurance companies and high net worth individuals to raise money for their next fund. This goes in cycle: when the current fund is close to being fully spent (i. e. 70-80 of the money has been invested in companies), the senior management will go on the road and ask for fresh money. Fundraising involves presenting the past performance of the fund, its strategy, and the individuals working in the firm who will be in charge of making investments. All of this is needed to convince those institutions to invest money with the firm. Sourcing and making investments The quotsourcingquot (i. e. finding investments) part is largely done by mid-to senior management, and involves looking for potential targets and reaching out to the management of those companies, either directly or via a middleman such as an investment bank. Many private equity funds will specialise in sectors and or regions their dedicated teams will have very strong knowledge of all the attractive companies in a specific sector and will also know potential targets39 management teams well. The quotmakingquot part, which represents the process of acquiring a company, is the responsibility of the junior team, under the seniorsrsquo supervision. This involves drilling into the financial performance of the company, analysing the trends in the industry, negotiating with the target, and coordinating the work of advisors: investment banks, accountants, strategy consultants, lawyers, technical experts, etc. Once they have analysed sufficient information, the team will present an quotinvestment paperquot to the senior partners to propose the investment. The senior partners will then vote to accept or reject the investment. Once a company has been acquired, it needs to be managed for a couple of years until it is sold off. While private equity professionals are not involved in the day-to-day running of the companies they buy, they will monitor performance and be involved in important strategic decisions. While some firms have specialist teams that manage investments (quotoperations teamsquot), most of the time the team that worked on the transaction will be in charge of monitoring the company. Selling off companies Returns are only really generated when companies are sold (at a profit). Investments are typically kept for three to five years, and will be sold after that time period. This process is also usually managed by the more junior team under senior management supervision. Companies can be sold though a sale to another company, a sale to another private equity firm, or via an IPO on the stock market. What Is So Good About Private Equity If you work in investment banking long enough, you39ll often hear about private equity and meet bankers wanting to move to private equity. But why do people want to get into this field and why is it so competitive A few answers below: The job is considered more intellectually challenging than investment banking In investment banking, you are merely advising companies on what to acquire and divest, or on ways to optimize their finances, while private equity professionals take the risks by directly investing money in companies. A private equity job not only involves crunching numbers and pitching ideas, it also requires finding attractive potential targets, understanding key dynamics in various industries, understanding how companies are run, and actually helping to organize the management of those companies. PE professionals must have the necessary personal and communication skills to get on with the management and create a solid network, and obviously, you need to understand MampA and financial modelling extremely well. Overall, private equity is thought of as a much more quotwell - roundedquot job. The lifestyle is better than investment banking Private equity firms do not have clients, and in general don39t have to prepare presentations at the last minute, so all-nighters are highly unlikely. They also outsource many of the more labour - intensive tasks: banks help them find targets while managing acquisition and sale processes, consulting firms help them with due diligence, and accountants help them with the financial side. This is not to say that private equity professionals do not work hard when they are on deals, and there will definitely be quite a lot of late nights during due diligence process, but on average the hours are significantly better. On the flip side though, while the pressure is not as constant as in investment banking, PE firms give a lot of responsibility to their juniors, so pressure to perform is actually much greater: you wonrsquot have an associate or VP to double-check your work before it goes to the partner, so you39re on your own. Also, private equity is often considered to be a quotsolitaryquot job compared to investment banking: you don39t have as many colleagues and the camaraderie is just not the same in private equity firms, compared with investment banks. The long-term pay is better If you work in private equity, one part of your long-term compensation will come in the form of quotcarryquot, which is essentially a percentage share of the gain that the fund makes when selling investments. This can be a substantial amount and equal to several millions over a few years if the fund is successful, hence the attractiveness of the private equity business model. The quotprestigequot factor is greater Private equity investors are on top of the financial food chain. They buy and sell large companies across sectors and countries, sit on management boards, coach and advise CEOs, and have top investment banks and consulting firms working for them. For example, firms such as the Carlyle Group manage over 000 billion and, through their investments, employ over 400,000 people globally. Current and former employees include George Bush Sr, George W Bush, John Major (former British PM), two former prime ministers of Thailand, the former President of the Philippines and the brother of French President Sarkozy. In addition, private equity jobs are highly competitive because those firms employ very few people, and those people tend to stay for many years or decades with the same firm. Therefore, they are able to be extremely picky about who they employ, and the lucky few to make it in the industry can pride themselves as being among the quotcream of the cropquot. What Can You Do After Private Equity Private Equity is often viewed as the ldquoholy grailrdquo for many professionals working in finance, especially for those from investment banking and strategy consulting. However, those who manage to make the switch to Private Equity usually do so at a very young age, either in their mid-twenties or early thirties. So, do they keep working in private equity for the next 30 years Can they change jobs Below is an overview of the potential career exits open to private equity professionals. 1. Moving to a hedge fund Many private equity professionals get frustrated by the slow pace and tedious administrative tasks of deal-making, and by the long time it takes to make large profits. If you work in private equity, you will not be able to become millionaire overnight - it will take at least five to ten years. Therefore, a lot of PE professionals decide to move to hedge funds, where returns can be made quickly and money can be earned (but also lost) more rapidly. There are some similarities between hedge funds and private equity both are about investing money wisely, so junior private equity professionals can easily make the switch. 2. Becoming a venture capitalist Some private equity professionals may also find that doing large deals is not as exciting as investing in startups, and may switch to VC funds. This is more common for people that have a sector focus such as Media, Technology or Healthcare, given that those sectors are favoured by Venture Capitalists. 3. Launching your own fund This is not really a career change per se, but many private equity professionals dream about launching their own funds. This happens more frequently for senior professionals who have a track record and large networks. 4. Joining a Corporate Portfolio Company One of the most interesting aspects of working in private equity is helping the portfolio companies to grow. Private Equity professionals quite commonly decide to go to work for one of their portfolio companies in a senior position (i. e. CFO, CEO, Head of Business Development). This can become quite lucrative, as you would usually be granted stock in the company and make a substantial profit if the exit is successful. It doesn39t even have to be one of the portfolio companies - the private equity skillset if very well suited to roles in corporate strategy and finance. 5. Moving back to advisory roles (i. e. investment banking, private equity strategy consulting) This is not the most common move, but some private equity professionals can decide to move back to investment banking or other advisory roles for a variety of reasons, including redundancy, failed fundraising, poor economic environment, or if they just find it to be more lucrative. 6. Secondary funds, Fund of Funds Some PE professionals leave to join secondary funds or fund of funds companies. Secondary funds are funds that purchase portfolio companies from private equity funds directly (it can be one or many), usually at a steep discount. The private equity funds often need some liquidity for a variety of reasons, i. e. they want to exit from a specific sector or close down the fund rapidly. Funds of funds are funds that invest in private equity companies as opposed to investing in companies. Most private equity professionals are highly entrepreneurial and always have some great business idea at one point or another, especially at the junior level. Private equity is also very helpful if you want to become an entrepreneur, because the opportunities to learn and network are fantastic. Private Equity Compensation Structure The whole private equity business model is based on quotprofit sharingquot i. e. sharing the profits made from the investments. Therefore, compensation is quite different from what you would encounter in a typical corporate environment, or within investment banking. How do Private Equity firms get paid Private equity firms get paid in two main ways: management fees and carried interest. - Management fees are paid regularly by the Limited Partners (i. e. the people who gave the money to the firm to invest) to the fund. This is calculated as a of the assets under management. For example, if the Limited Partners invested 1 billion with a private equity fund, they will pay something around 2 of that amount (1bn x 2 20 million) per year to the fund as a management fee. Why do they have to pay this given that they already gave the fund money to invest This is because the private equity funds have a lot of ongoing expenses that they need to cover: salaries, deal fees (that they pay to investment banks, consultants), travel, etc. - Carried interest: this is a percentage of the profits that the fund gains on the investments. For example, if a company is bought for 100 million and sold for 300 million, the profit is 200 million. The private equity firm usually takes about 20 of that amount (40 million), and the rest goes to the investors. However, it is not that straightforward in reality - there is often a quothurdlequot rate of return that the fund has to make before they get paid anything. For example, the Limited Partners may ask that the fund only gets paid if the return is over 8 per annum. In addition, the profit is calculated for the performance as a whole for the whole amount invested (that may be 10 to 15 deals), not on a deal-by-deal basis. - quotOthersquot: some private equity firms charge quotdeal feesquot. That means that each time they buy a company, they may charge some extra money to the investors. This is in theory to cover the extra expenses incurred during a deal. How do Private Equity professionals get paid Private equity professionalsrsquo compensation reflects the way the overall firm gets paid: - Base salaries: usually on par with investment banking or consulting (sometimes slightly lower) - Year-end bonuses: usually lower than what you would get in investment banking - A quotcarryquot component: represents the individual39s share of profits. The more senior your level in the fund, the larger percentage you will receive of the overall carried interest. This profit share is always paid when all the profits in the fund have been realised (which can take five to seven years), and this can be very substantial because private equity funds are small, but they can manage very large amounts of money. - Coinvestments: some private equity firms allow employees to invest their own money in some deals, and if the deal is successful, you could realise a significant profit as well. What makes a good private equity investment This is a very common Private Equity interview question, and you might also encounter that type of question in interviews for investment banking, equity research or even capital markets roles. Not all companies are suitable targets for LBOs, and private equity firms will only invest in companies exhibiting the following characteristics: Strong and stable cash flows Private equity deals get enhanced returns because they use a significant portion of debt to finance their investments. For example, if the company costs pound100, they can typically use pound50 of their own cash to pay for it, and pound50 of debt. The process of using debt is called quotleveragingquot or quotgearingquot a company. This means that the company will have to make substantial monthly or quarterly interest and principal repayments on the debt, and it cannot afford to miss any of those payments. For this reason, the bankers will only be happy to lend significant amounts of money to companies that have strong, stable, and predictable cash flow. Low capital expenditure requirements Private equity tends to stay away from companies that require heavy investments in plants, machinery, or equipment as these are a drain on cash. Examples of capital expenditure intensive industries are energy, utilities, manufacturing, construction, and transportation. Industries that require less capital expenditure are software companies, online businesses, and publishing ventures. Leading market positions Attractive companies have proven products and good management, which usually translates into a quottop threequot positioning. Strong positioning is also typically synonymous with strong and more stable cash flow. High barriers to entry, niche markets High barriers to entry and niche positioning will protect the company from competition, which could hurt cash flow and the company39s ability to repay debt. Potential for margin improvement or cost reduction This can be observed by comparing the company cost structure to its competitors and will be a source of value creation for private equity, which will quotrestructurequot the business to some degree. Private equity firms often hire consultants that identify those strategic and cost improvements. Strong existing management team or availability of new management team Strong management is always a positive, even though new management is often brought in during a LBO. Acquisition opportunities Acquisitions are a good way to grow companies quickly. Therefore, private equity firms will analyse the industry to identify potential targets. An industry with many players is called quotfragmentedquot. Good exit potential A private equity firm will need to be convinced that a suitable exit can be found. This will normally occur by way of trade sale (selling to another company), secondary sale (selling to another private equity firm) or IPO. A buyer will typically have a time horizon of between three and five years, although a number of financial buyers target longer or shorter periods. What is Private Equity Private equity funds are private pools of money managed by quotgeneral partnersquot who aim to generate a return to the investors (quotlimited partnersquot) who are investing their money in the fund. Private equity funds can manage anything from pound50 to 100 million to several billions. The general partners will charge a percentage fee of the total amount that they manage (typically 1.5 to 2 per year) and they will also keep a share of the profits they generate (usually 20). Private Equity is called quotprivatequot because it is a source of funds that do not originate from quotpublicquot sources such as bonds or listed equity. The funds are used to invest in companies, usually acquiring a significant stake to gain control over the firm39s management. When a private equity firm makes an acquisition, they use significant amounts of debt, and therefore such acquisitions are called quotLeveraged Buy Outsquot or LBOs. The practice of LBOs was pioneered by firms such as Kohlberg, Kravis amp Roberts (KKR) in the 1970s and over the last three decades, LBOs have assumed roles of ever-greater importance in the financial world. How does an LBO work How do they make money Private Equity funds buy companies using significant amounts of debt instead of their own money, which holds a number of advantages: 1. Interest on debt is tax-deductible. 2. If the company has a lot of debt, a small change in its overall value will have a strong impact on the equity value (i. e. the money invested by the fund). This effect is called quotgearingquot. A simple example: imagine you buy something for pound10 by borrowing pound9 and using pound1 of your own money. Three years later, it is worth pound12 (20 increase). You pay back the pound9 of debt and you keep the pound3 extra, so you made 300 In real life, the process is complicated by taxes, interest, and debt repayments but the theory is the same. Bear in mind that the interest you pay on the debt is fixed, so the private equity firm can pocket all the extra return. 3. Because cash flow is tight due to debt repayment, debt keeps management disciplined. 4. Most LBOs are structured so that management is also given a substantial incentive to perform in the form of equity. 5. Private Equity funds will then help the company to achieve an optimal strategy (i. e. revenue growth, cost-cutting) with the aim to exit and sell the company within four to five years (after some of the debt has been repaid), either to another company, another private equity fund, or through an IPO. How are they different from venture capital or hedge funds Venture Capital firms invest in early-stage companies (or quotstart-upsquot), and make smaller investments (a few millions at maximum). Venture Capital firms also target very high-growth companies with huge potential, i. e. Internet companies such as Facebook, Google, and other innovative technology firms in healthcare, renewable energy, biotech, etc. but that also have more potential to go bust Hedge Funds invest in publicly listed securities and usually do not seek to gain control of companies they invest in. Also, hedge funds tend to appeal to very short-term investors (from days to less than one month). Where does the money come from Wealthy individuals, pension funds, and mutual funds are the typical investors in private equity funds. What kind of companies do Private Equity funds buy Because LBO returns (on average 20-30 over four to five years) can only be achieved with a lot of debt and good growth potential, the target companies have to be quite stable. So strong, niche, market-leading companies with cost-cutting and expansion potential in non-cyclical industries are favoured targets. What kind of people work for private equity In the UK, there are four kinds of backgrounds: Ex-investment bankers Ex-strategy consultants Ex-Big 4 accountants Industry experts such as ex-CEOs or senior managers of corporations. Many of these people come from Oxbridge Ivy League universities, often with top MBAs. What about job prospects and salaries Because firms are very small (10 to 20 people on average), there are very few jobs available. Also, requirements are very high due to the high level of responsibility. This makes the industry extremely competitive, even much more than investment banking. Salaries are on par with investment banking, bonuses are usually lower, but you will get the opportunity to share in the profits generated by the fund, which can be substantial. Paper LBO model example This type of paper LBO test is an interview exercise you will be facing, often multiple times, in the course of a Private Equity recruitment process. Make sure you are able to go through this exercise reasonably quickly and without the help of Excel or a calculator. Clearly state the simplifying assumptions you are making and their implications. The team is considering the purchase of a company on the 31st of December of Year 0 Entry multiple: 6.0x LTM EBITDA Entry Debt quantum: 3.0x LTM EBITDA Assuming no financing and transaction fees Interest rate for the debt negotiated at 5 Debt repaid as a bullet at the end of the investment period Sales: 100m in Y0, growing at 10 year-over-year (y-o-y) for the next 5 years EBITDA: historical margin at 40 of Sales Depreciation amp Amortization: 30 million per year, steady Capital Expenditure: 15 of Sales Net Working Capital (NWC) requirements expected to increase by 2 million each year Marginal tax rate of 25 Exit at the same entry EBITDA multiple, after 5 years. NB: On most occurrences, you will not be given such a data set and will therefore be expected to either ask for some more information or come up with your own assumptions. 1. Transaction metrics Start by calculating the firm value at entry, the debt quantum, and deduce the equity acquisition price. Sales for Year 0 were 100m with an EBITDA margin of 40, which gives an LTM EBITDA of 40m and therefore an entry Firm Value of 240m. The quantum of debt is determined in a similar way, giving 120m. The equity cheque is therefore 120m. Other interviewers will give a leverage ratio instead of a debt multiple the debt is then computed directly from the Firm Value. 2. Sales and EBITDA Use growth and margin assumptions to calculate the Sales, then EBITDA, for every year. Do not hesitate to ask your interviewer if rounding is acceptable it will save you a lot of time, show that you are fully aware of the approximation you are making, and gives excellent results. 3. Interests amp taxes Apply the interest rate provided to the Debt nominal amount to calculate the yearly interest expense. Taking out the interest expense from the EBITDA leads to the EBT, from which taxes are calculated. This then leaves us with the Net Income. The goal here is to come up with the cash flows available for debt repayment for every year. From the Net Income, all the cash expenses (here Capex and increase in NWC) should be taken out. Since DampA is a non-cash expense, it should be added back in. 5. Firm Value at exit Applying the exit multiple to the year 5 EBITDA, we come up with the exit Firm Value. The debt at exit is the debt at entry, minus the cumulative cash flow available for debt repayment. Subtracting this new debt number from the firm value gives the exit Equity amount. 6. Cash multiple and IRR The cash multiple (also called money multiple) is defined as the ratio of exit to entry equity. The IRR is the yearly return of the investment. This often requires a calculator, nevertheless, a few approximated figures are worth remembering, e. g. a cash multiple of 3x over 5 years is equivalent to a 25 IRR. For more accurate figures, have a look at the conversion table below. All done, congratulations Now, repeat this exercise with only a pen and paper and come up with new sets of assumptions. Train and train again until you are able to do all this by heart and fairly quickly. For mode practice, check out our private equity case studies and modelling tests here. Now, repeat this exercise with only a pen and paper and come up with new sets of assumptions. Train and train again until you are able to do all this by heart and fairly quickly. For mode practice, check out our private equity case studies and modelling tests here Key mistakes in Private Equity interviews Private equity interviews are notoriously difficult and compeitive, with 1000s of CVs and often 100s of candidates being interviewed for a single position. Therefore, private equity firms can afford to be very demanding and small mistakes can prove to be fatal in private equity interviews. 1. You didn39t research the private equity fund deals Altough this may sound basic, a very common mistake of private equity interview candidates is to forget to do proper research on the fund they are interviewing with. At minimum, one should have read the website, read the recent news, and memorised 2 or 3 investments that the fund has made. Fair questions may include quotwhich deal do you like most and whyquot, quotwhich deal do you like the leastquot, quotwhy do you think we invested in XXXquot, and quothave you read about our latest dealsquot. Make sure you understand the investment thesis for at least 3 of them, read press articles and any other source of information you can find. Even better, if you get the chance to have informal conversations with other members of the team, do ask them about their deals. Similarly, if you know a banker or consultant that worked on the deal, try to gather some information. Well informed and prepared candidate always impress, and unprepared candidates will seem not motivated. 2. You didn39t prepare investment ideas Another fair question in private equity interviews is quotdo you have any investment ideas for usquot. This is a very standard questions and I would recommend to prepare at least 2 ideas (ideally 3) that are well developed and thought out. Those should be real companies and investment opportunities. You will not be expected to know all the details, however you will be expected to know the investment rationale, some key financials, some industry trends and why you think it would be a good fit for the fund. Typical mistake include having too broad ideas (i. e. I think a bank would be a good investment), or something innapropriate for the fund (because of size, geography or sector, for example). 3. You don39t know your deals Anything on your CV is fair game. If you are a banker or consultant, you will be expected to know about any transaction you worked on in great detail (especially for the recent ones). Rationale, financials, deal specifics, strucuture, process, pricing of debt intruments, your exact role in the deal, etc. Anything that is not confidential could potentiall be asked. Typical mistakes and red flags are vague answers or lack of understanding of the deals you worked on. After all, as an investor, you should demonstrate great attention to detail and curiosity, as well as an ability to think like an investor. 4. Not getting the culture fit Culture fit is always a tough one. However, reading up on firms history, the team member profiles, a bit of social networking stalking (i. e. linkedin) combined with help from the headhunter if you are using one, should help you understand the quotcutlure fitquot. To illustrate, a fund may be looking for highly technical, hard driving people. This may be obvious from the team members backgrounds (i. e. bulge brackets, technical degrees, etc.). In this case you should emphasise this skillset. Some other funds may look for more quothumblequot attitudes especially as you decrease in investment size, and again this may be evidenced by the dress code, more diverse backgrounds (i. e. accountants vs bankers, less elitist schools, etc.) and you should therefore adjust your interview style accordingly. 5. Not being prepared for the obvious interview questions The reality is that you are able to predict with a great degree of certainty at least 80 of the interview questions. Therefore, failing to give a clear and straight answer to questions about your deals, your CV, why private equity, why this particular fund, etc. is usually not well received. Most of the unknows are around the case studies, modelling tests and some fit questions - the rest is fairly standard. 6. Lacking number skills Many funds like to put candidates under pressure, and testing numerical skills are a good way to do this. Arithmetic questions, brainteasers, doing simple LBO modelling in your head and converting Cash on Cash returns toIRRs should be something you are very comfortable with. If not - do practice Also, when asked technical questions or numerical questions, it is absolutely fine to take a bit of time to answer. The key here is the control your stress and getting it right. 7. Being overly confident While all of the above mistakes involve some lack of preparation, another red flag in private equity interviews is overconfidence and arrogance, which can actually be fairly common in interviews. Make sure that you are not leaning back on your chair, o not be overfriendly with the senior members of the team, and, at all times, make sure that you demonstrate that you are very keen to get the job. Differences between Investment Banking and Private Equity culture A large majority of private equity professionals have an investment banking background, and many investment bankers are thinking of making a switch to private equity one day. However, there are some major differences in skillset and culture between those two professions. Often, private equity firms would like to hire bankers quotearly, quot i. e. after one or two yearsrsquo experience at an investment banks. The reason is that those firms are sometimes afraid that a potential recruit who has spent too much time in investment banking will acquire a quotbanker mindsetquot. Below are some of the key differences between those two jobs. Private equity involves using your brain a lot more A lot of investment bankers tend to be deal-driven. The quothungerquot to close many large deals is actually a weakness in private equity because itrsquos not about generating fees anymore. Private equity professionals need to do good deals and be ready to step back even after months of hard work if the deal will not generate sufficient returns. What does this mean in practice This means that you will spend a lot of time analysing the industry in much greater detail compared to banking, assessing management team39s ability to meet the targets, think about exit strategy, incentives, deal structure, all possible or potential downside risks, and countless other issues that could make the deal good or bad. Private equity is not gambling or even venture capital investing in which you would typically expect a few losses. Private equity is about generating consistent high returns with minimum risk. Private equity is a long-term game (5 years) While the pay might be a little bit higher or lower in PE (depending on the fund size), the money is made from the ldquocarryrdquo, i. e. the share of the profits when companies are sold. This carry is earned over time, so it doesn39t make sense to jump from one place to another anymore. A bad year in banking might prompt you to change your employer, but a bad year in private equity will just be a fact of life and you need to take a more long-term view. In addition, the few partners who run the firm will make the decisions about carry allocation, so building long-term relationships with them will be very important to your financial success. You think you are good at modelling Think again While many bankers are very good at modelling, private equity modelling tends to be much more detailed and focus on completely different issues. Modelling in private equity often depends on designing the optimal capital structures (debt equity) and also the incentive structures (preference shares, bonuses, management equity, etc.). The modeling tends to be much more complex and detailed, so assumptions in your operating model will be challenged by the team and due diligence advisors. In addition, the pressure is much more intense because the deal team will rely on your model to make investment decisions, so millions will be at stake. Showing an entrepreneurial mindset is key Being creative and entrepreneurial are very desirable characteristics for most PE funds. Finding deals, networking, formulating new ideas, and considering all kinds of risks and opportunities around deals and companies can make a substantial difference to the profitability of the firm. Also, private equity professionals need to understand the in-depth aspects of overseeing companies therefore professionals with some start-up or entrepreneurial experience are valued because they understand all of those important details. Working hours may not be shorter If you work for a very large firm - hours will be banking hours. Even if you go to a smaller firm, you will still work a good 60 hours per week and your schedule will remain somewhat unpredictable due to due diligence meetings, management meetings, and other deal-related, last-minute requests. While the lifestyle is better, you39re still working in a deal-driven environment. The base salary and bonus structure might not differ that much from that in banking, but the money in private equity is made when a fund closes and when exits are made. Don39t be expecting a steady bonus and promotions every few years. What matters most now is the fund performance, not your own individual achievement. You may have built the best models and worked on the biggest deals, but if the returns are not there, you won39t get paid. The amount of grunt work definitely decreases in private equity. There are fewer administrative tasks, printing of books, and many people-intensive tasks can be outsourced to banks and advisors. But essentially, what you do is the same as in banking: analysing companies, building operating and LBO models, dealing with all the legal documentations (i. e. reviewing NDAs, term sheets) and making presentations to the investment committee. Finding deals is something completely new for investment bankers. While you will not be expected to bring deals immediately, eventually the team members will expect you to be able to build relationships with bankers and screen through the deals to find some that are appealing, and also to cold call or approach companies directly. This is a key aspect of becoming a private equity professional many junior bankers find the transition difficult as they have been handed out deals to work on in their banking days. Social life in investment banking can actually be quite exciting. You39re working in firms with thousands of employees there are many peers to discuss and to share your war stories with, junior bankers are usually all below 30 and there is a work hard play hard mentality. Also, the turnover is quite high in banks new analyst and associate classes arrive every year, so it can be a very stimulating environment. Private equity is completely different. Teams are small (maybe 10 to 30 people), many of the partners and senior investors are much older, and people don39t really move upward or downward. Considering that the typical profiles of private equity professionals tend to be quite quotstandardquot (i. e. top school, investment banking strategy consulting background, etc.), therefore social life tends to be less fun. Choosing the right firm with the right culture fit is very important and you need to make sure that you will get along with your interviewers. Communication skills are extremely important Communication skills and personal skills are extremely important in private equity. You can be a top modeller and be extremely hardworking. However, to convince the investment committee, get people in the firm to support you, get the management team to work with you, and find out the best deals from the intermediaries, you will need for people to like you. Most of the senior private equity professionals are charismatic individuals (at least when they need to be), and there is little space for professionals who are either too shy or arrogant.