Vault career guide to private equity free download

It also has one of the most rigid corporate structures in the industry, with 11 industry groups within the company focusing on day operating plans for portfolio companies and dealmaking. Carlyle is one of the largest private equity firms in the world, with people in 27 offices around the globe.

Texas Pacific Group This firm vaulted into the top echelon of private equity with its purchase of twice-bankrupt Continental Airlines—which it ultimately unloaded for more than 10 times the purchase price. Bain Capital Bain is perhaps best known for producing Republican presidential candidate Customized for: Quan miaoquan gmail. Given its notoriety, it remains a small firm— small enough for CEO Jonathan Nelson to take the entire firm to Alta, Utah, each year on a ski trip.

Warburg Pincus Warburg Pincus is unusual among private equity companies in that it tends to eschew the blockbuster deal. Cerberus Capital Management Customized for: Quan miaoquan gmail. Yet the firm struggled to get that deal financed amid the credit crunch—and some wonder if the two-headed dog of myth bit off more than even two mouths can chew in the Chrysler deal. Other private equity sources In recent years, private equity firms have seen increased competition from hedge funds and investment banks, even as both entities have given private equity firms larger and larger placements to work with.

To be fair, they all started or acquired hedge funds as well. Some, like Morgan Stanley, had long been used to interesting and unusual private equity placements, while others launched private equity funds from scratch and funded them through other operations.

Indeed, the jury is still out on whether these funds will last beyond the current boom. A few, such as Fortress Investment Group, have done well in managing their investments.

Others are simply content to put up the cash alongside an established private equity firm and allow the firm to do most of the heavy lifting. The firm was founded in by Jerome K. Kohlberg Jr. The three founders had worked together at Bear Stearns Cos. Like many private equity firms, KKR started simple, buying up three small, relatively unknown companies in , and three more the following year. Instead, KKR used—and still uses—about 25 percent of its own capital in a transaction, financing the rest through bank loans and high-yield bond issuance.

What KKR was expert at doing was using its leverage to put its own capital toward multiple investments. It closed six different transactions in , and by it had purchased the Motel 6 chain, followed a year later by the Safeway grocery stores.

By , Kohlberg resigned at age 61, leaving Kravis as senior partner. KKR then started looking for a new deal—and found a big one. But the lack of a guaranteed price by management and word of then-CEO F. Many say that, amid the merger boom of the s, KKR simply paid too much for Nabisco.

And KKR was the victim of poor timing as well. And RJR Nabisco itself was broken up and sold off to others. Yet the ultimate failure of the investment was drawn out over at least Customized for: Quan miaoquan gmail. Nonetheless, KKR remains one of the leading private equity firms on Wall Street and is certainly the elder statesman of the industry. Morgan— the man, not the institution—purchased Carnegie Steel Co.

Phipps took his share and created, in essence, a private equity fund called the Bessemer Trust. Today the Bessemer Trust is more private bank than private equity firm, but Phipps and his children started a trend of buying exclusive rights to up-and-coming companies—or buying them outright. The notion of a private buyout of an established public company remained foreign to most investors until , when President Dwight D.

Eisenhower signed the Small Business Act of That provided government loans to private venture capital firms, allowing them to leverage their own holdings to make bigger loans to startups—the first real leveraged purchases. Soon, other companies started playing with the idea of leverage. Lewis B. Cullman made the first modern leveraged buyout in through the purchase of the Orkin Exterminating Co.

Others followed, but the trend quickly died by the early s. For one, the government raised capital gains taxes, making it more difficult for KKR and other nascent firms to attract capital. Money flowed back into private equity funds, and some of the best-known firms were founded—Bain Capital in , The Blackstone Group in and The Carlyle Group in By the time the recession took hold, private equity firms resumed a low profile, waiting for the next boom.

The tech boom The tech boom of the s was a unique time for private equity. Stock prices soared, even for companies that had no business being publicly traded, let alone having a rising stock price. It became inordinately difficult for a private equity firm to create value through the traditional buyout method.

But at the same time, venture capital was on the rise, fueling a surge of new companies. LBOs still occurred, but at far less impressive levels than in the s. A maturing industry The dot-com bust of brought the markets back to reality and unearthed new opportunities for private equity firms. Some firms swept in to buy good companies on the cheap, waiting for the bust mentality to pass before returning them to market.

Others simply enjoyed the fire sale, and bought technology and patents for resale, dismantling the failed companies in the process. By , the market had returned to a bull cycle, but with some notable Customized for: Quan miaoquan gmail.

Congress had enacted the Sarbanes-Oxley Act, which tightened regulations on public companies and what they could say and do. Those pressures combined to make private buyouts seem attractive to potential target companies. Furthermore, the rise of hedge funds created a great deal of wealth that needed new homes, and broadened the number of potential investors in private equity.

Typically, a major PE firm will kick off its interviewing season in , The Blackstone Group started in April ; then others follow and there is a month of hot and heavy interviewing for the bulk of PE firms, though plenty of jobs can also be acquired later. Its quite comical how early the process begins, despite the interviewees barely knowing how to add, much less model, as they have not yet finished their first year working.

The junior post-MBA process Youll be relying on your schools career center more than headhunters. Many firms contact the big business schools directly. The main interviewing season will occur at the beginning of your last year; but many jobs will extend beyond that. Definitely reach out to alumni at the firms or industry youd like to work in. Other levels For those who are looking for jobs immediately after undergraduate college, you can try to contact some headhunters, but dont expect a call back.

Youll need to rely on your career center or your own resourcefulness. For senior levels, its a good idea to keep in constant contact with headhunters even if you are satisfied with your current job. It keeps you updated on your market worth. Data gathering The headhunters will collect your resume and ask you to fill out an informational sheet about your work and education history as well as your career interests and geographical preferences.

Be careful if you are interested in something that is very different from your current job. For instance, you are an investment banker covering the energy sector but youd really like to join the healthcare group at XYZ firm and get out of the energy sector. Embed Size px x x x x Copyright by Vault. Learn more. Venture capitalists raise funds of millions or billions of dollars and invest it in promising young businesses and start-up companies, reaping the rewards when these companies make it big or another company buys them.

Careers in this high-powered and tight-knit industry are highly desirable for those who seek an intellectually challenging and entrepreneurial environment—not to mention potentially unparalleled financial rewards.

Venture capital jobs can be hard to land, though, because the industry is small, and its standards are very high. So how do you break into this exclusive branch of the finance world? The Vault Career Guide to Venture Capital, Sixth Edition provides an insider's perspective on what's happening in the venture capital industry, what it takes to break in and how to advance your career, helping you master every step of your job search.

Vault Career Guides offer an industry insider's view of what it takes to land a job in your chosen profession. Embed Size px x x x x Library Journal. Vault has a wealth of information about major employers and job-searching strategiesas well as comments from workers about their experiences at specific companies.

The Washington Post. A key reference for those who want to know what it takes to get hired by a law firmand what to expect once they get there.

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The associates focus on the grunt quantitative work in which they create complex models to illustrate future company cash flows. The middle tier, the vice presidents, manage and coordinate the day-today needs of the deals. The top will emphasize the bigger picture, such as sourcing deals with existing or new management contacts. Hedge funds vary depending on the size of the firm. Typical titles include research analyst, junior trader, trader, vice president, risk manager, portfolio manager, and partner.

The hierarchy culture at HFs tends to be much flatter than PE. Both judge candidates based on a spectrum: 1 analytical abilities, 2 industry experience, 3 track record, and 4 contacts. The most junior position may only demand analytical capabilities but as you move up the ladder, the requirements spread further right.

The pedigreed At the lowest entry point, a college undergrad may join a hedge fund as an analyst. Rarely do recent undergrads go directly into PE. It is possible to have neither, but very difficult, so focus on networking or spend some time at an investment bank. Typical pre-MBA associates will have had a one- to two-year stint in an investment bank, or to a lesser extent, at a consulting firm.

Typical post-MBA associates will already have relevant buy-side experience but may also be recruited from other finance or corporate backgrounds. Pedigrees at prestigious colleges Wharton, Harvard and bulge bracket investment banks Goldman Sachs, Morgan Stanley improve your marketability.

Senior-level positions are offered on a case-by-case basis, so traditional or unusual backgrounds are considered as long as they are valuable to the firm. If an infrastructure fund is hiring, a project finance background as well as an engineering background will lend itself naturally.

Connections are key. Dynamics handles mostly hedge funds, including Citadel. An inclusive listing can be found in the appendix of this guide. You can also draw upon other resources such as networking connections and classifieds. For the most part, headhunters are the gatekeepers to PE and HF interviews. They will gather thousands of applicants resumes and then handpick only a dozen to interview at each client.

They are usually genuinely helpful people but remember who fills their coffers; firms pay them anywhere from 10 to 50 percent of first years salary.

The recruiters job is find appropriate candidates and to get them to accept the offer. The junior pre-MBA process Mainly applicable to investment banking candidates, you will begin to be contacted by various headhunters in the first year of your analyst program, up to three months before the interviewing season starts.

PE firms prefer to interview as late as possible so they can quiz you on work experience. However, HF firms seek out raw intelligence and interview year-round. The big HFs start whenever they feel like it. In , Citadel started interviews in March. Because PE shops dont want to miss out on the pool of talented candidates, they often follow suit as soon as possible. Typically, a major PE firm will kick off its interviewing season in , The Blackstone Group started in April ; then others follow and there is a month of hot and heavy interviewing for the bulk of PE firms, though plenty of jobs can also be acquired later.