{"id":2404,"date":"2024-01-10T09:22:00","date_gmt":"2024-01-10T14:22:00","guid":{"rendered":"https:\/\/blogarchive.utc.edu\/business\/?p=2404"},"modified":"2024-01-12T16:38:18","modified_gmt":"2024-01-12T21:38:18","slug":"career-private-equity-with-mba-in-finance","status":"publish","type":"post","link":"https:\/\/blogarchive.utc.edu\/business\/2024\/01\/10\/career-private-equity-with-mba-in-finance\/","title":{"rendered":"Start a Career in Private Equity with an MBA in Finance"},"content":{"rendered":"
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Private equity is an increasingly popular career path, and an MBA with a finance concentration can play an essential part in breaking into the this field. Flamingo Images\/stock.adobe.com<\/figcaption><\/figure><\/div>\n\n\n

Private equity drives innovation, productivity, and undeniable profits. Its impact on the modern economy cannot be overstated\u2014across all sectors, there are companies in need of investment and expertise, and private equity firms promise to give these enterprises the boost they need.<\/p>\n\n\n\n

This potential to shape businesses and the economy as a whole is highly compelling to many of today’s most ambitious finance professionals, so it’s easy to see why private equity is such an attractive field. Unfortunately, this means that breaking into private equity can be exceedingly difficult. To help you get a solid start, we reveal how to get a job in private equity and which private equity roles are worth pursuing. <\/p>\n\n\n\n

The Growing Popularity of Private Equity as a Career<\/h2>\n\n\n\n

Private equity (PE) represents an increasingly popular career path within the modern financial space. Its appeal is apparent: Private equity is exciting and lucrative yet still manages to deliver a reasonable work-life balance. This is also a highly passion-driven profession, so it attracts a great deal of attention from ambitious individuals with a compelling desire to make a difference in specific sectors or by supporting certain types of organizations.<\/p>\n\n\n\n

Insights from Ernst & Young<\/a> indicate that PE activity has recently shown a significant uptick. With these ever-more prominent deals comes a need for strong PE talent that can support transactions and drive growth. Another report from Heidrick & Struggles<\/a> should be especially promising for anyone hoping to break into PE. These insights assert that “the market has been particularly active at the more junior levels, where firms have needed more people to execute, and the time to hire has shrunk markedly, from months to weeks.” <\/p>\n\n\n\n

What Do Private Equity Firms Do?<\/h2>\n\n\n\n

The role of the private equity firm can seem complicated, but the concept is actually quite simple. These firms aim to improve companies believed to have high potential, especially those facing challenges preventing them from truly making their mark. These are often growth-stage companies, although mature organizations may also call for assistance from private equity firms.<\/p>\n\n\n\n

The private equity model involves purchasing private stakes, which may be funded directly by the PE firm or by other investors. From there, PE firms strive to deliver targeted improvements, typically by boosting operations or cutting costs. Through the act of purchasing stakes, investors are able to gain greater control over how these companies are operated. <\/p>\n\n\n\n

Advantages of a Career in Private Equity<\/h2>\n\n\n\n

Because private equity is such a competitive and demanding career path, you will want to uncover your why<\/em> well before attempting to enter this field. Understanding the deep-seated reasons behind your professional maneuvers can keep you on track as you face the inherent challenges of the industry and ensure you leverage your passion and skills to make a meaningful difference where it’s needed most.<\/p>\n\n\n\n

Below, we highlight several of the most compelling benefits of working in private equity beyond just the expected (like the potential to earn an impressive income) to detail the intrinsic value of this career path. <\/p>\n\n\n\n

High Earning Potential<\/h3>\n\n\n\n

There is no denying that private equity is a lucrative field. Six-figure annual salaries are the norm, with many professionals breaking $100k shortly after they’ve earned their master’s degree. Salary data from Glassdoor<\/a> reveals an annual pay range of between $148k and $258k, encompassing both the base pay and substantial bonuses.<\/p>\n\n\n\n

Impressive financial opportunities may continue to arise long after breaking into the field; moving into roles like vice president or principal, for example, results in a significant compensation boost (as noted in the aforementioned Heidrick & Struggles report<\/a>). <\/p>\n\n\n\n

Investment in Promising Companies<\/h3>\n\n\n\n

There’s more to private equity than six-figure salaries and discretionary bonuses\u2014though these are definite perks of the job. In addition, PE professionals can feel fulfilled helping promising companies reach their potential. This has a broad impact on the economy at large and is what keeps passionate PE analysts, associates, and other professionals striving for important deals. <\/p>\n\n\n\n

Long-Term Value Creation<\/h3>\n\n\n\n

One of the central objectives of any private equity firm is to drive long-term value. This can be achieved by pursuing several strategies, such as:<\/p>\n\n\n\n