The private equity industry focuses on the investment of private companies. Their investment strategy consists of purchasing an entire business with leverage and implementing operational improvements to increase the value of the business. A private equity firm will typically hold an investment for 5-7 years before selling the company at a higher value. This is a highly competitive career path; most people will go through two years of investment banking before entering a private equity firm as an associate. However, there are opportunities for a select few to join a private equity firm out of college as a private equity analyst.

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Similar to private equity, venture capital professionals invest in private companies. However, venture capitalists invest in startups rather than mature companies. Many new companies seek venture capital funding to start their business and to grow rapidly. Venture capitalists decide which startups to invest in and advise them throughout a series of funding. They also provide support by adding members of their firm to the boards of the companies. They usually exit the investment in these companies via a buyout or IPO.

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Resources:

• Center for Venture Capital Private Equity and Entrepreneurial Finance

• MBA

• Wall Street Prep

• Adventis Financial Modeling

• MOS Excel Certification; Experience in a start-up, large tech corporation, Investment Bank, or Hedge fund

• Financial Markets Institute Optional (not as helpful for this career but still provides networking opportunities and investment banking experience)

• CFA Optional