Job description

Private equity refers to the money invested in companies that are not publicly listed on stock exchanges. These investments sometimes relate to buy outs of public companies that take the companies out of public ownership. The term private equity typically refers to the companies who make such investments. These investments are often undertaken in the belief that the company can be bought, revitalised and then resold or floated at a profit.

Private equity funds are raised from institutional and retail investors who are looking for a return on their investments based on the performance of the private equity fund.

Private equity transactions include:

• Leveraged buy outs: where a private equity organisation uses a significant amount of debt to acquire a business, working on the assumption that the cash flows of the business will be sufficient to service the debt. This kind of transaction is attractive to the investor because it involves reduced risk to the investor or institution and also carries the prospect of healthy returns if the acquired company thrives under the investor's control.
• Venture capital: where money is typically invested to fund the launch, continued development or expansion of a company.
• Growth capital: where money is invested in an established company which wishes to restructure, expand or acquire another company.

Qualifications

The requirements for working in private equity depend on the nature of the role.

Salary Snapshot

Recent jobs in private equity advertised on TopFinancialJobs (February 2010) include:

• £51-60,000 per annum for a newly qualified accountant working as a Senior Analyst for a large private equity firm in London.
• £61-70,000 per annum for a qualified Senior Fund Accountant working for a private equity firm in London.
• £100-150,000 per annum for a Private Equity Fund Raiser/Investor Relations Professional working for a European private equity firm in London.
• £50-60,000 per annum for a qualified Investment Accountant working for a world leading private equity company in the West End of London.

Do you work in private equity? Would you like to contribute to our "Day in the Life of..." series? Email us at info@topfinancialjobs.co.uk for more details.