Private equity associates are the workhorses of any investment team. They are typically closest to the financial modeling, analytical work, and diligence that private equity firms perform. Being closest to the investments makes being a private equity associate a very demanding but rewarding role…
Private equity associates are responsible for supporting the evaluation, execution, and management of investments made by their private equity firms. Some of their key responsibilities may include:
To source, associates email and cold-call executives from potential targets on an acquisition list that fits the investment fund’s strategic priorities.
Initial Investment Screening
After a senior team member or associate has sourced a potential new investment, the associate is tasked with taking a first look at the target company. This initial analysis usually involves reading through the target’s investor presentation (Confidential Information Memorandum – CIM) and making an initial decision on whether it is worth it for the firm to continue to spend time and effort analyzing the company.
After a team decides to go forward with an investment, private equity associates are integral to the research and diligence that go along with deciding whether to make the investment or not. The tasks they do include:
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Investment Memo Writing & Presentation
Associates are typically closest to the model and are expected to write the pages that outline the potential returns of an investment. Depending on the practices of the fund, associates may be expected to present part or all of the investment committee memo.
Portfolio Company Monitoring and Reporting
Aside from finding new investments, private equity associates spend a considerable amount of time monitoring and reporting on the portfolio companies the fund has invested in. Each associate is typically tasked with monitoring a handful of portfolio companies.
Through performing all these tasks, associates learn how to both become better investors that they can transfer to any future investment-related role and better operators of companies that can be transferred to corporate roles.
Embark on an exciting journey in the world of private equity—a fast-paced and fulfilling career path. Navigate the various stages, from associate to partner, encountering both opportunities and challenges along the way. Stay ahead of the game by understanding what to expect and positioning yourself for success in recruitment and beyond.
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