To work as a private equity manager, you’ll need an undergraduate bachelor’s degree in finance or economics, preferably from a prestigious university. Obtaining a Masters in Business Administration (MBA) degree after completing your undergraduate degree will help you land a job at a top firm. Between your bachelor’s and master’s degrees, you should work as an analyst or associate on a private equity fund to gain valuable on-the-job experience. Some aspiring private equity managers opt to take the Certified Financial Analyst (CFA) or Certified Public Accountant (CPA) exams.
One of the most important first steps toward becoming a private equity manager is to get into and excel at a top institution known for its economics and finance programs of study. This includes Ivy League schools in the United States, Oxford and Cambridge in England, St. Andrew’s in Scotland, and other schools of comparable caliber around the world. These schools will provide courses on portfolio valuation, diversified portfolio management, and optimal asset investment, as well as other skills needed to become a private equity manager. These schools will also provide you with a well-respected degree and a network of successful classmates and alumni in addition to these skills.
The next step is to enroll in a top MBA program, which some argue is even more important than attending a prestigious undergraduate institution. Look into graduate business programs that have a reputation for providing excellent quantitative training. Your prospective business school should also have a history of connecting students with private equity fund recruiters. You will have the opportunity to network with other intelligent financial professionals interested in private equity management while in graduate school.
To become a private equity manager, you must first gain experience in the field. Learning on the job is a great way to figure out which funds are better for your clients’ assets. You’ll also get a firsthand look at a competitive private equity firm’s fast-paced and high-impact environment.
Candidates for private equity management positions are in high demand, and many try to obtain professional certification to make themselves more appealing to employers. Depending on their experience, some people choose to take the CFA or CPA exams. After assessing your skill set and willingness to study for a standardized exam, choose the best option for you.