With a longer investment horizon, private equity (PE) investors carefully pick private companies with potential for growth in value or troubled or undervalued listed companies with the aim of turning them around. Like professionals in other fields in the investment industry, those who work in private equity are involved in identifying and evaluating potential investments and executing those transactions. Junior professionals, such as analysts or associates, perform financial modeling and analysis and help with due diligence and documentation, whereas senior executives, such as principals and partners, make investment decisions, find potential investments, and raise money.

The ability to source deals, maintain deal flow, and retain enough funds to execute those deals are critical in this highly competitive field. Thus, in-depth local knowledge and a vast network of contacts across various industries work to one’s advantage. Venture capitalists focus typically on startups and may invest in several rounds of financing. On the other hand, buyout funds invest in established businesses and help enhance their performance over time through operational or management improvements.

“With venture capital, you invest in a company, then you grow the company, and in three or four years, you exit with a handsome multiple on your investment. The results are visible,” says Derrick Kyujeong Han, CFA, investment manager at Tongyang Investment Corporation. Whether it’s a buyout or venture cap deal, success is measured by a well-timed exit from these investments that maximizes gains for investors. Professionals with investment banking experience (especially in mergers and acquisitions) or with strong local knowledge in a specific industry or market where significant deal flow is expected may have an edge over others for private equity jobs.

Despite the slowdown, PE firms are sitting on plenty of capital and some firms are still hiring, especially those with a strong focus; while this role requires strong analytical, quantitative, and communication skills are essential. Initiative to find investment opportunities and business acumen are also important