The term “private equity manager” refers to a variety of positions within the industry. It is most commonly used to describe the management of a fund set up to purchase private equity investments. This can include deciding which assets to buy in some cases. In some cases, this entails keeping financial records for previously made purchases. The responsibilities of a private equity manager differ greatly from one organization to the next, and even within one organization.
The portfolio manager is one of the most common types of private equity manager. Essentially, this job entails locating promising investment opportunities. These people keep a close eye on market trends and have honed their skills at spotting businesses and real estate with the potential for financial gain. While these managers may conduct in-depth research on a specific investment on occasion, their primary focus is on larger trends.
Before making a purchase, it’s common to conduct additional research on a potential investment. A private equity manager of due diligence is the person who is in charge of ensuring the financial stability of these investments. This position may entail investigating issues involving organizations that are not well-known to the general public. A due diligence manager can help with restructure planning in cases where distressed investments are involved.
The financial backers of an equity fund are of primary concern to a private equity fund manager of fund operations. The primary responsibility of this position is to compile financial information about the fund and provide it to investors. Managers of fund operations may also be in charge of overseeing the budget and establishing general guidelines for the fund’s day-to-day operations.
Managers in larger private equity funds may be divided into investment areas. A real estate portfolio manager, for example, focuses solely on property acquisitions. Venture capitalists, growth capitalists, and even financial opportunities involving public infrastructure may be specialized private equity managers.
In some cases, it is the equity fund itself that is specialized, not the manager. Funds are sometimes created with a specific investment objective in mind. These funds could concentrate on venture capital investments in new businesses in emerging markets. Small funds are frequently managed small teams.
The title of private equity manager can be used managers of specialized or small, independent funds. They act as jacks-of-all-trades, supervising all aspects of the funds’ operations. These managers only work alone in exceptional circumstances, as the complexity of private equity funds prevents them from doing so.