The world of finance is broad. But we’re here to spell it out for you. This time, let’s talk about Private Equity (PE). The job market of PE is competitive and challenging! Understanding it and preparing for the application process is key!
What is Private Equity?
An important question: what is PE? This alternative form of investment allocates investment money from institutional investors, such as high-net-worth individuals and pension funds. The raised capital is invested in the shares of a private company/ non-publicly-traded company that is expected to have great potential.
Simply put, PE firms strive to improve their portfolio companies, increase their value and sell it for a higher price, usually during a period of 5 to 8 years. The goal of a PE firm is essentially to improve the profitability of the companies they invest in.
Private Equity explained
A career in Private Equity
Doing an internship has become a common way to kickstart your career in Private Equity. Previously, the most common path was to pursue Strategy Consulting or Corporate Finance for a few years, to then switch to Private Equity.
So the fact that you can now break into Private Equity through internships is quite some progress! Usually, an internship in Private Equity in the Netherlands lasts between 3 to 6 months.
What will your main tasks be? Supporting the analyst or associate with monitoring portfolio companies, cold acquisition to source new deals and building financial models.
Where you will assist the analysts and associates depends on the stage of the deal:
The Private Equity sector is broad, and firms within it differ in terms of the types of deals they do, their sector focus, and organisational culture.
Before you apply for an internship, do your research about different companies. To increase your chances of landing an internship in Private Equity in the Netherlands, you should have a proven affinity with finance – whether that is through extracurriculars, certifications, your study programme, etc.
What’s more, prior experience (internships) in other fields of finance such as Corporate Finance will get you a long way when it comes to landing a Private Equity internship.
Investing in multiple internships and extra-curricular activities during your studies will help you stand out and will give you the chance to start an internship or maybe even an analyst position at a PE firm.
Our tip? Take your time and invest in your resume.
- Invest in extra-curricular activities during your bachelor
- Take your time for your Masters – enough so that you can do an internship while you’re still studying
- Do an internship in sectors such as Corporate Finance
- When you graduate from your Masters, land your internship in Private Equity!
- Rock your internship and get an offer as an analyst
- A different path? Invest in a career in Corporate Finance or Strategy Consulting and switch to Private Equity after two years of experience.
Do you want to know which Private Equities hire fresh graduates in The Netherlands?
Book a 20-min chat with one of our Talent Managers.
Ultimately, our advice comes down to this: Network! Network! Network! And if you don’t know where to start…you know where to find us!
Expand your network in Private Equity: get in touch with companies that are hiring and reach out to role models that are already in the industry. In a world as competitive as Private Equity, a strong network is a must.
😎 Pro tip: Check out these upcoming events for people interested in Private Equity.
