http:www.jobsearchdigest.com Review of the PE industry and career opportunities, including internationally.

1. An Overview of
Private Equity Careers
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2. The Private Equity Industry
• Private equity (PE) firms invest in
non-publicly traded companies
– Top firms provide tremendous PE job
opportunities
• PE investments can take various
forms:
– Leveraged Buyout (LBO)
– Mezzanine Financing
– Venture Capital (VC)
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3. Leveraged Buyout (LBO)
• Taking control of established firm via
leveraged financing techniques
• Research shows that companies with PE
owners tend to outperform public industry
indices
– Revenues & margins improve; jobs are created
• Some top PE firms: Kohlberg Kravis
Roberts & Co, Carlyle Group, Goldman
Sachs, TPG & Apollo Management
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4. Mezzanine Financing
• Availability of • Less risk & lower
capital ROI than equity-
– Challenge in PE based investments
• Mezzanine
investors
– Focus on debt side
– Provides more
seniority than equity
shares
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5. Venture Capital (VC)
• Focuses on growth of a company
– Launch new products or services
• Funds raised by VC firms tend to be
smaller than LBO
• Early stage financing
– Known as “seed round”
• Later stage
– Focus less on launch & more
on market expansion
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6. VC Industry
• Less positive reputation
– Company founders not supported
– Deal terms often viewed as “vulture-like”
• Founders often see
their stake in company
reduced significantly
even when growth
plans are achieved
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7. Investor Returns
• PE firms provide returns
by successfully exiting the
investments
• Achieved in one of 2 ways
– Company goes public (IPO)
– Company is sold for a price higher
than purchased
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8. The PE Model is Changing
Traditional model is
breaking
• Use of financial engineering Focus will be on:
(e.g. high leverage,
arbitraging higher exit • Locating good companies that are
multiples) undervalued
• Driving profitable growth to
generate good returns
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9. International PE Jobs
• Will play an important
role in the next decade
– Especially in Asia & India
• PE investments will likely increase in
rapidly growing (China & India) and
resource-rich countries (e.g. Russia,
Brazil, Indonesia & Australia)
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10. PE Job Skills Needed
• Firms backed by • Best suited for long
PE tend to value term PE careers
operational vs. – Business professionals
with:
accounting skills • Operational experience
– Focus on cash flow • Leadership ability
driven by operational • Communication skills
excellence & sales • Financial modeling skills
growth • Ability to inspire teams
under pressure to perform
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11. Thank You
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