A look at private equity careers

A private equity career is a sought-after path in the finance sector. It’s got a lot to offer ambitious and analytical people, so it’s easy to see why it’s a popular choice – but it’s also competitive.

We take a look at private equity careers and explain where you could fit in. We’ll cover:

• What is private equity?
• How to get into private equity
• Jobs in private equity
• The skills you’ll need
• Salaries and bonuses

Private equity (PE) is a type of investment that involves investing in companies that aren’t traded on the stock exchange. So, instead of buying publicly available shares, PE investors buy equity stakes (ie. partial ownership) from private companies. It helps businesses raise capital while investors hope to turn a profit on their investments.

PE firms make money by buying up or investing in private companies and working to increase their value. They provide the capital companies need to help them grow, develop new products or restructure. A PE firm might sell a company (or its stake) for a profit fairly quickly or choose to own a percentage for the long term.

Most private equity firms don’t recruit out of university, so it’s unusual to enter the sector as a grad. Sometimes, a firm will hire those with an MBA (Master of Business Administration) straight out of business school. However, even then, the recruiter will typically still look for those with at least a couple of years of prior investment banking experience.

Most private equity firms use head-hunters to recruit top candidates from investment banks. Your best path to a role in PE is to apply to an investment bank and excel in your first few years as an analyst. If you put a lot of effort into networking, you might find yourself on a head-hunter’s list.

Do you want to specialise in private equity but don’t want to work as an investment banker first? While it’s unusual to enter the sector as a grad, it isn’t impossible. There are a few PE firms who do recruit from unis, usually via a form of summer analyst programme where undergraduates work full-time over the holidays. Competition for places on those programmes is intense, so you’ll need to do plenty of preparation when applying.

Alternatively, another route into PE is through management consulting or strategy consultancy. At a consulting firm, you’ll gain exposure to all aspects of business and finance. The analytical and commercial skills you’ll learn will provide a sound springboard for entry into a full-time private equity role.

There are different roles in private equity. Your job title and responsibilities will depend on your seniority. Typically, the more experience you have, the more likely it is that you’ll climb the ladder in private equity. Of course, not everyone will go on to take the highest roles but if you want to get to the top, there’s no reason why you can’t get there eventually.

A standard hierarchy of jobs in private equity is:

• Analyst (or junior associate): The entry-level role
• Senior analyst (senior associate): Where you’ll work more independently
• Vice president: A role that centres around client relationships and presentations more than day-to-day technical tasks
• Director: A position that requires handling negotiations and big decisions
• Partner: The most senior role that involves investing into the organisation and leading in raising funds, building client relationships and ensuring a good company reputation

As an analyst is the entry-level role in private equity, it’ll usually be the first job you do in the sector. Because of that, we’ll take you through what the role involves in more detail.

As a graduate analyst in private equity, your role will be to analyse the economics of companies and potential deals. You might:

• research new deals and investment areas
• prepare relevant documentation for partners
• coordinate the research and due diligence needed for a deal to take place

You'll probably focus on projects in a particular sector area or industry and become an expert in that field.

Some of the skills you'll need to succeed in a private equity career include:

As private equity is such a competitive sector, your first challenge is getting into the industry. Strong networking skills will help you catch your break.

Network wherever you can. Make use of your university's alumni networks to see if anyone has gone on to a career in private equity. If you spot that somebody has your dream job, send them a polite message asking if you can chat over a video call. If you secure a meeting, prepare plenty of questions and always say thank you – they're giving up their time to help you after all.

Your work needs to stand up to scrutiny by the major players in a deal, so it needs to be error-free. You also need to have the skills to analyse everything that comes your way. Nothing should get past you.

Working hours can be long, especially as a potential deal gains momentum and moves towards closure. You'll need to be flexible and ready to commit to what your firm needs.

Good communication skills will be critical throughout your career. You’ll need to be able to build relationships to settle in. And once you progress, you'll have to influence others, win new business and lead a team.

How much you earn in private equity will depend on your role, experience, the firm you work for and your location.

As a general guide though, private equity roles tend to be well-paid.

The average salary for a private equity associate is around £63,000 (with higher salaries in London). Meanwhile, the average salary for a director is almost £130,000. So, you can see how you’ll earn more as you progress throughout your career.

In addition to your salary, you’ll also earn bonuses (usually based on the money you’ve generated from deals). How much you’ll earn in bonuses will depend on your firm’s policy and the size of the deals. However, it’s not unusual for your bonus to be more than your salary.

It's tough cracking into the private equity sector, but it’s perfectly possible. Roles in the industry are highly desired, so you'll need to prove to a firm that you’re the top candidate with the hard skills and soft skills that’ll add value to their business.

While you might not get to work for a PE firm straight out of uni, you can still shape your career towards the specialism by gaining transferable experience in investing banking or consultancy.

Once you’ve gained a job in private equity, you’ll be well rewarded with your salary and bonuses. However, you need to be prepared for long working hours.

If you’re up for the challenge, we wish you the best of luck!

This article was last updated in June, 2025.