{"id":1191,"date":"2022-09-02T16:20:12","date_gmt":"2022-09-02T16:20:12","guid":{"rendered":"https:\/\/theforage.wpengine.com\/?p=1191"},"modified":"2024-07-23T13:19:56","modified_gmt":"2024-07-23T17:19:56","slug":"private-equity","status":"publish","type":"post","link":"https:\/\/theforage.wpengine.com\/careers\/private-equity","title":{"rendered":"What Is Private Equity?"},"content":{"rendered":"\n<p>Private equity (PE) is an area of the <a href=\"https:\/\/www.theforage.com\/blog\/careers\/financial-services\">financial services<\/a> industry that involves firms making investments in private companies, or companies that aren&#8217;t traded on the public stock market. The investment into private companies is referred to as private equity, and private equity firms are the companies that make these types of investments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-private-equity-firm\">What Is a Private Equity Firm?<\/h2>\n\n\n\n<p>Private equity firms control private equity funds and use this money to buy out or purchase a majority stake in private companies. These firms often restructure the companies they invest in and improve profitability.Then, the firm sells the company or its shares for profit.&nbsp;<\/p>\n\n\n\n<p>PE firms often specialize in specific sectors, such as <a href=\"https:\/\/www.theforage.com\/blog\/careers\/health-care-good-career-path\">health care<\/a>, <a href=\"https:\/\/www.theforage.com\/blog\/careers\/is-technology-good-career-path\">technology<\/a>, or real estate. Within the firm itself, there are limited partners and general partners:<\/p>\n\n\n\n<ul>\n<li><strong>Limited partners<\/strong> are individual <a href=\"https:\/\/www.theforage.com\/blog\/careers\/investor\">investors<\/a>, pension funds, and institutional investors. Limited partners have majority ownership in the fund, but are protected from losing more money than they invested.&nbsp;<\/li>\n\n\n\n<li><strong>General partners<\/strong> are the ones who make decisions about where, when, and how to invest capital from limited partners. They represent the firm itself. General partners only own a small percentage of the fund, but they take on the full liability if their investment decisions don&#8217;t work out.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-firms-make-money\">How Firms Make Money<\/h3>\n\n\n\n<p>Private equity firms typically focus on one of three types of investing strategies:<\/p>\n\n\n\n<ul>\n<li><a href=\"https:\/\/www.theforage.com\/blog\/careers\/what-is-venture-capital\"><strong>Venture capital<\/strong><\/a><strong>:<\/strong> investing in a start-up or early-stage company<\/li>\n\n\n\n<li><strong>Growth equity:<\/strong> investing in the growth of a company at its&#8217; middle stages<\/li>\n\n\n\n<li><strong>Buyouts:<\/strong> purchasing a mature company entirely<\/li>\n<\/ul>\n\n\n\n<p>When a PE firm invests in a company, it&#8217;s making a long-term investment. Firms can sometimes wait 10+ years before realizing any actual returns.&nbsp;<\/p>\n\n\n\n<p>Outside of returns on investments, private equity firms make money through a fee structure. Firms often charge limited partners a management fee equal to 2% of their assets under management (AUM), or the amount of money the limited partner has entrusted to the firm. Firms then take a performance fee, usually around 20% of the revenue from an investment.&nbsp;<\/p>\n\n\n\n\t<div class=\"forage-core-course-card\">\n\t\t<div class=\"forage-core-course-card__inner\">\n\n\t\t\t<div class=\"forage-core-course-card__col\">\n\t\t\t\t<div class=\"forage-core-course-card__row\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"100\" src=\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L-150x100.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"Close up of someone in actuarial sciences analyzing data\" srcset=\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L-150x100.jpg 150w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L-300x200.jpg 300w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L-1024x684.jpg 1024w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L-768x513.jpg 768w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L-1536x1025.jpg 1536w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L-600x400.jpg 600w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/10\/Depositphotos_278238342_L.jpg 2000w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h2 class=\"forage-core-course-card__name\">H2 Ventures Venture Capital<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__description\">Explore the world of VC and learn in-demand skills with this free job simulation from H2 Ventures. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"forage-core-course-card__button forage-core-course-card__button--desktop\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.theforage.com\/virtual-internships\/prototype\/HkzdjFN4mabt7vRSx\/Venture-Capital-Virtual-Internship\" target=\"_blank\">\n\t\t\t\t\t\t\tEnroll now\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t<div class=\"forage-core-course-card__col\">\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__time\">\n\t\t\t\t\t\t<span class=\"label\">Avg. Time:<\/span>\n\t\t\t\t\t\t5 to 6 hours\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__skills\">\n\t\t\t\t\t\t<span class=\"label\">Skills you&#8217;ll build:<\/span>\n\t\t\t\t\t\tStartup scouting, opportunity analysis, identifying factors of success, investment lifecycle, financial modeling, comparable company analysis, forecasting\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"forage-core-course-card__button forage-core-course-card__button--mobile\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.theforage.com\/virtual-internships\/prototype\/HkzdjFN4mabt7vRSx\/Venture-Capital-Virtual-Internship\" target=\"_blank\">\n\t\t\t\t\t\t\tEnroll now\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t<\/div>\n\t<\/div>\n\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-where-do-firms-get-the-money-to-invest\">Where Do Firms Get the Money to Invest?<\/h3>\n\n\n\n<p>The money PE firms use for investing comes from a variety of sources: Limited partners can be endowments, independent wealth funds, or individual investors. But, much of the money that comprises a private equity fund comes from pension plans \u2014 specifically, <em>public <\/em>pension plans.&nbsp;<\/p>\n\n\n\n<p>Many of the world&#8217;s public pension plans are underfunded, so in an attempt to ensure they can pay their beneficiaries, these pension funds invest in private equity. According to a <a href=\"https:\/\/naicpe.com\/wp-content\/uploads\/2021\/11\/NAIC2021-ExaminingTheResults.pdf\">study from the National Association of Investing Companies<\/a>, nearly half of all funding for their member companies came from public pension plans as of November 2021.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-careers-in-private-equity\">Careers in Private Equity<\/h2>\n\n\n\n<p>In a private equity firm, you can either work on the investing side or in a more support-focused role behind the scenes.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-investing-career-path-in-private-equity\">Investing Career Path in Private Equity<\/h3>\n\n\n\n<p>Working on the client-facing, investing side of a private equity firm is a relatively straightforward career progression: You start as a private equity analyst and work your way up to partner.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pe-analyst\">PE Analyst<\/h4>\n\n\n\n<p>As entry-level positions, sometimes called junior associates, analyst roles typically involve a lot of learning and helping higher-ups. These <a href=\"https:\/\/www.theforage.com\/blog\/careers\/financial-analyst\">financial analysts<\/a> review data, draft financial models, and create presentations.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-associate-and-senior-associate\">Associate and Senior Associate<\/h4>\n\n\n\n<p>With more independence, senior associates handle deals entirely on their own, from start to finish. Senior associates also have the responsibility of generating new business.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-vice-president-vp\">Vice President (VP)<\/h4>\n\n\n\n<p>The role of VP is less data-focused, instead prioritizing client relationship building, negotiating, and <a href=\"https:\/\/www.theforage.com\/blog\/basics\/networking\">networking<\/a>.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-director-or-managing-director\">Director or Managing Director<\/h4>\n\n\n\n<p>Directors are primarily responsible for fundraising, closing deals, and handling more overarching company decisions.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-partner\">Partner<\/h4>\n\n\n\n<p>A partner is the face of the firm, responsible for building relationships with clients, negotiating deals, and increasing funding. Additionally, partners typically need to invest their own funds into the firm.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-support-careers-in-private-equity\">Support Careers in Private Equity<\/h3>\n\n\n\n<p>A private equity firm is the same as any large organization, and it needs people who manage the business and its offices. These types of roles include:<\/p>\n\n\n\n<ul>\n<li><a href=\"https:\/\/www.theforage.com\/blog\/careers\/what-does-an-accountant-do\">Accountants<\/a><\/li>\n\n\n\n<li>Lawyers<\/li>\n\n\n\n<li>Administrative assistants<\/li>\n\n\n\n<li><a href=\"https:\/\/www.theforage.com\/blog\/careers\/data-engineer\">Data engineers<\/a><\/li>\n\n\n\n<li>Human resources staff<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group forage__cta-pattern is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-1 wp-block-group-is-layout-flex\">\n<h2 class=\"wp-block-heading has-text-align-center\">Find your career fit<\/h2>\n\n\n\n<p class=\"has-text-align-center\">Discover if this is the right career path for you with a free Forage job simulation.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.theforage.com\/course-catalog\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Private Equity Salaries<\/h2>\n\n\n\n<p>Private equity is a highly sought-after role for many people in the finance industry. And for good reason: PE firms don&#8217;t deal in small change, and those high-dollar-amount deals typically equate to big salaries and bonuses. Moreover, the deals in private equity are only getting bigger. According to a <a href=\"https:\/\/www.bain.com\/insights\/private-equity-market-in-2021-global-private-equity-report-2022\/\">report from Bain &amp; Company<\/a>, private equity buyouts in 2021 totaled $1.1 trillion \u2014 double that of the previous year!<\/p>\n\n\n\n<p>Estimates from Glassdoor place entry-level private equity analyst salaries around <a href=\"https:\/\/www.glassdoor.com\/Salaries\/private-equity-analyst-salary-SRCH_KO0,22.htm\">$92,200<\/a>. However, salaries in PE ultimately depend on the company, the types of deals it makes, location, and other forms of compensation, like bonuses and commission.&nbsp;<\/p>\n\n\n\n<p><strong>&gt;&gt;MORE:<\/strong> Check out some of the <a href=\"https:\/\/www.theforage.com\/blog\/careers\/best-paying-jobs-in-finance\">highest-paying careers in finance<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-get-into-private-equity\">How to Get Into Private Equity<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Education and Background<\/h3>\n\n\n\n<p>Breaking into the private equity world is not easy \u2014 most firms want people with a strong <a href=\"https:\/\/www.theforage.com\/blog\/careers\/is-finance-a-good-career-path\">finance<\/a> or business background, preferably a Master of Business Administration (MBA) or a master&#8217;s degree in finance.&nbsp;<\/p>\n\n\n\n<p>A common pathway into private equity is to start as an <a href=\"https:\/\/www.theforage.com\/blog\/careers\/investment-banker\">investment banker<\/a> for a few years. Much of the day-to-day work in <a href=\"https:\/\/www.theforage.com\/blog\/careers\/investment-banking\">investment banking<\/a> directly translates to the required skills for private equity. Private equity firms are relatively small, though, so the competition is tight.<\/p>\n\n\n\n\t<div class=\"forage-core-course-card\">\n\t\t<div class=\"forage-core-course-card__inner\">\n\n\t\t\t<div class=\"forage-core-course-card__col\">\n\t\t\t\t<div class=\"forage-core-course-card__row\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"93\" src=\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/08\/jpmorgan-internships-150x93.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"J.P.Morgan bank corporation headquarters glass building concept. JP Morgan banking company symbol on front facade 3d illustration.\" srcset=\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/08\/jpmorgan-internships-150x93.jpg 150w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/08\/jpmorgan-internships-300x187.jpg 300w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/08\/jpmorgan-internships-1024x638.jpg 1024w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/08\/jpmorgan-internships-768x478.jpg 768w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/08\/jpmorgan-internships-1536x957.jpg 1536w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/08\/jpmorgan-internships.jpg 2000w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h2 class=\"forage-core-course-card__name\">JPMorgan Investment Banking<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__description\">See if you have what it takes to make it in the fast-paced world of investment banking with this free job simulation from JPMorgan. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"forage-core-course-card__button forage-core-course-card__button--desktop\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.theforage.com\/virtual-internships\/prototype\/YD2kY95RQxQtXxFTS\/JPM-IB-Virtual-Experience-Program?forceFastTrackV2=true\" target=\"_blank\">\n\t\t\t\t\t\t\tEnroll now\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t<div class=\"forage-core-course-card__col\">\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__time\">\n\t\t\t\t\t\t<span class=\"label\">Avg. Time:<\/span>\n\t\t\t\t\t\t5 hours\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__skills\">\n\t\t\t\t\t\t<span class=\"label\">Skills you&#8217;ll build:<\/span>\n\t\t\t\t\t\tM&amp;A screening, collaboration, company analysis, financial modeling, DCF, presentations, communication\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"forage-core-course-card__button forage-core-course-card__button--mobile\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.theforage.com\/virtual-internships\/prototype\/YD2kY95RQxQtXxFTS\/JPM-IB-Virtual-Experience-Program?forceFastTrackV2=true\" target=\"_blank\">\n\t\t\t\t\t\t\tEnroll now\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t<\/div>\n\t<\/div>\n\n\n\n\n<h3 class=\"wp-block-heading\">Certifications<\/h3>\n\n\n\n<p>Prospective private equity analysts can make themselves more marketable by getting certifications that prove specific skills. Some of the best options include:<\/p>\n\n\n\n<ul>\n<li><a href=\"https:\/\/www.theforage.com\/blog\/careers\/chartered-financial-analyst\"><strong>Chartered Financial Analyst (CFA)<\/strong><\/a>: This certification is often required in investment banking, and it&#8217;s a tough credential to earn. Not only does a CFA designation show high-level investment and finance skills, but it shows tenacity and motivation \u2014 both skills vital in private equity.&nbsp;<br><\/li>\n\n\n\n<li><strong>Chartered Private Equity Professional (CPEP)<\/strong>: This certification shows you understand private equity inside and out and is perfect for those early in their career who want to solidify their expertise in PE early on.&nbsp;<br><\/li>\n\n\n\n<li><a href=\"https:\/\/www.theforage.com\/blog\/careers\/certified-public-accountant\"><strong>Certified Public Accountant (CPA)<\/strong><\/a>: Passing the CPA exams is no easy feat, but the in-depth business and accounting knowledge CPA&#8217;s have is crucial in PE.&nbsp;<br><\/li>\n\n\n\n<li><strong>Chartered Alternative Investment Analyst (CAIA)<\/strong>: While many finance certifications can show a deep understanding of investing, the CAIA is designed to prove expertise in alternative types of investments, such as private equity, venture capital, or commodities.&nbsp;<br><\/li>\n\n\n\n<li><strong>Certified Financial Planner (CFP):<\/strong> The CFP designation is applicable to a variety of <a href=\"https:\/\/www.theforage.com\/blog\/careers\/careers-in-finance\">careers in finance<\/a>, but in PE, having a CFP shows strong money-management skills. When restructuring or restrategizing a company, PE firms need people who can watch the finances closely and plan ahead for any changes to the micro- and macro-economic environment.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Skills<\/h3>\n\n\n\n<p>To be successful in private equity, you need hard skills in finance and business, like:<\/p>\n\n\n\n<ul>\n<li>Familiarity with financial modeling<\/li>\n\n\n\n<li>Understanding of the various <a href=\"https:\/\/www.theforage.com\/blog\/skills\/business-valuation\">business valuation methods<\/a>&nbsp;<\/li>\n\n\n\n<li>Knowledge of how to calculate core metrics, like <a href=\"https:\/\/www.theforage.com\/blog\/skills\/cagr\">compound annual growth rates (CAGRs)<\/a><\/li>\n\n\n\n<li>Proficiency with Microsoft Office programs like <a href=\"https:\/\/www.theforage.com\/blog\/skills\/what-is-microsoft-excel\">Excel<\/a> and PowerPoint<\/li>\n<\/ul>\n\n\n\n\t<div class=\"forage-core-course-card\">\n\t\t<div class=\"forage-core-course-card__inner\">\n\n\t\t\t<div class=\"forage-core-course-card__col\">\n\t\t\t\t<div class=\"forage-core-course-card__row\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"84\" src=\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/07\/Goldman-Sachs-150x84.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"Working at Goldman Sachs\" srcset=\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/07\/Goldman-Sachs-150x84.jpg 150w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/07\/Goldman-Sachs-300x169.jpg 300w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/07\/Goldman-Sachs-1024x576.jpg 1024w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/07\/Goldman-Sachs-768x432.jpg 768w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/07\/Goldman-Sachs-1536x864.jpg 1536w, https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/07\/Goldman-Sachs.jpg 2000w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h2 class=\"forage-core-course-card__name\">Goldman Sachs Excel Skills for Business<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__description\">Learn the core Excel skills you need to succeed in private equity and finance with this free job simulation from Goldman Sachs.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"forage-core-course-card__button forage-core-course-card__button--desktop\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.theforage.com\/virtual-internships\/prototype\/eLeZHcwX7CqLhhps7\/Goldman-Sachs-Excel-Skills-Virtual-Experience-Program?forceFastTrackV2=true\" target=\"_blank\">\n\t\t\t\t\t\t\tEnroll now\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t<div class=\"forage-core-course-card__col\">\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__time\">\n\t\t\t\t\t\t<span class=\"label\">Avg. Time:<\/span>\n\t\t\t\t\t\t4 to 5 hours\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p class=\"forage-core-course-card__skills\">\n\t\t\t\t\t\t<span class=\"label\">Skills you&#8217;ll build:<\/span>\n\t\t\t\t\t\tExcel, cell basics, formatting, financial forecasting, income statements, cash flow modeling, charting\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"forage-core-course-card__button forage-core-course-card__button--mobile\">\n\t\t\t\t\t\t<a href=\"https:\/\/www.theforage.com\/virtual-internships\/prototype\/eLeZHcwX7CqLhhps7\/Goldman-Sachs-Excel-Skills-Virtual-Experience-Program?forceFastTrackV2=true\" target=\"_blank\">\n\t\t\t\t\t\t\tEnroll now\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t<\/div>\n\t<\/div>\n\n\n\n\n<p>However, you also need interpersonal and soft skills to work in private equity. PE is a business built on networking and relationships. Being able to <a href=\"https:\/\/www.theforage.com\/blog\/skills\/communication-skills\">communicate<\/a> effectively, <a href=\"https:\/\/www.theforage.com\/blog\/skills\/critical-thinking-skills\">think critically<\/a> and <a href=\"https:\/\/www.theforage.com\/blog\/skills\/analytical-skills\">analytically<\/a>, <a href=\"https:\/\/www.theforage.com\/blog\/skills\/collaboration-skills\">collaborate<\/a> with others, and pay close <a href=\"https:\/\/www.theforage.com\/blog\/skills\/attention-to-detail\">attention to detail<\/a> is vital at all levels of private equity.&nbsp;<\/p>\n\n\n\n<p>Ultimately, you need the right skills to make it in private equity. Start learning these skills today with Forage&#8217;s <a href=\"https:\/\/www.theforage.com\/career-path\/investment-banking\">Investment Banking Career Path<\/a>.&nbsp;<\/p>\n\n\n\n<p><em>Image credit: Canva<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Private equity (PE) is an area of the financial services industry that involves firms making investments in private companies, or companies that aren&#8217;t traded on the public stock market. The investment into private companies is referred to as private equity, and private equity firms are the companies that make these types of investments. What Is &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/theforage.wpengine.com\/careers\/private-equity\"> <span class=\"screen-reader-text\">What Is Private Equity?<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":1192,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"forage_sticky_bar_enabled":true,"forage_sticky_bar_content":"Top companies are hiring now!","forage_sticky_bar_button_text":"Get seen","forage_sticky_bar_button_url":"https:\/\/www.theforage.com\/course-catalog","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"forage_editor_id":17,"forage_reviewer_id":0,"forage_authors":[],"veps":[4039,4715],"forage_sidebar":0,"forage_related_disabled":false,"forage_toc_enabled":true,"forage_toc_level":0,"modified":"2023-08-10T11:30:00","footnotes":""},"categories":[5],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.5 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Private Equity? - Forage<\/title>\n<meta name=\"description\" content=\"Private equity is a branch of investing that often involves buying out private companies. 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