Private Equity – Institutional | BlackRock (2024)

Private Equity – Institutional | BlackRock (1)

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Private Equity – Institutional | BlackRock (2024)

FAQs

Why is it so hard to get a job in private equity? ›

Not only do private equity firms have extremely particular job requirements, they also offer relatively few roles. To get into a private equity firm, you not only need the “right” background and education, you also have to be a solid fit with the existing team, and be ready to ace the private equity interviews.

What to say when asked why private equity? ›

What to Include in Your Answer to “Why Private Equity?”
  • Highlight that you have some transaction experience.
  • Express an interest in a sector that the PE firm invests in.
  • Position yourself as a long-term thinker or investor.
  • Show that you know what the PE firm has invested in.

Why are people in private equity so rich? ›

Private equity owners make money by buying companies they think have value and can be improved. They improve the company or break it up and sell its parts, which can generate even more profits.

What is institutional private equity? ›

Private equity firms operate these investment funds on behalf of institutional and accredited investors. Private equity funds may acquire private companies or public ones in their entirety, or invest in such buyouts as part of a consortium.

How hard is it to break into PE? ›

The potential is there to make a lot of money, even in your first year. And, the career carries a lot of prestige in the finance world. However, private equity is challenging to break into. Recent graduates compete with seasoned investment bankers and stockbrokers for a precious few job openings.

What are the odds of breaking into private equity? ›

For a student looking to break into one of the top 10 PE firms, your chance is 1 in 300 or 0.33%. To break into one of the top 10 hedge fund firms, your chance is 1 in 147 or 0.68%.

How much does the average person in private equity make? ›

Private Equity Salary, Bonus, and Carried Interest Levels: The Full Guide
Position TitleTypical Age RangeBase Salary + Bonus (USD)
Associate24-28$150-$300K
Senior Associate26-32$250-$400K
Vice President (VP)30-35$350-$500K
Director or Principal33-39$500-$800K
2 more rows

Why is private equity so attractive? ›

The private equity market has grown substantially, and as of 2021, private equity firms manage roughly 20% of U.S. businesses. Private equity firms can access large amounts of capital, which is attractive to business owners, especially as bank loans are becoming harder to access.

Why is private equity controversial? ›

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

Is BlackRock a private equity firm? ›

BlackRock's Private Equity teams manage USD$41.9 billion in capital commitments across direct, primary, secondary and co-investments.

Is an LP an institutional investor? ›

Institutional investors such as pensions, endowments, foundations, and sovereign wealth funds are examples of institutional LPs and asset owners. Limited partners and asset owners may manage their assets directly. Alternatively, they may outsource some or all management of their assets to external asset managers.

Are institutional investors good or bad? ›

Institutional investors are entitled to preferential treatment and lower fees. They are also subject to fewer protective rules because they are more qualified traders than individuals and thus better able to protect themselves.

How hard is it to get a private equity interview? ›

Private equity interviews can be challenging, but for most candidates, winning interviews is much tougher than succeeding in those interviews. You do not need to be a math genius or a gifted speaker; you just need to understand the recruiting process and basic arithmetic.

How hard is it to move up in private equity? ›

Private equity specialists are well compensated, and it is often possible to climb the corporate ladder rather quickly if you possess the motivation. However, there are still some aspects that it's important to be aware of, including: This can be a high-stress position. Long working hours, especially at a junior level.

Is private equity harder to get into than investment banking? ›

Private equity offers a more attractive work/life balance but is also potentially even harder to break into. Like investment banking, PE also offers opportunities to move into asset management, hedge funds, venture capital, or other senior roles in finance.

Is private equity still a good career? ›

Compared to other jobs in the financial space, private equity roles can provide a more balanced lifestyle, potential for better pay and more engaging, connected work. Private equity is growing in popularity, and an increasing number of college graduates or financial professionals are looking to break into the space.

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